Sorry to have to say it flygirl but one would have to think that Aviation Australian would be the most obvious choice to pick up ATAE or at least the contract places the Qld Govt funds if the Administrators go that way.
In fact they may not even have to buy it as the VA may well simply mean that ATAE have triggered some contract clause for ceasing ops and all the students and funded places can be picked up by AA, in the way you mentioned happened to QIAE in 2014.
Agree about the non-competitive nature of AA (the Govt) competing with the private sector, especially when their shareholders (the Govt Depts) hand out the funding contracts. Its dead set wrong.
If they also get into the flying training side as well by buying RQAC/AAA from the Administrator they would be a category killer in the market and wipe out more flying schools as they would have a distinct uncompetitive advantage. And I don't mean just on Archerfield.