I think Willie covered it nicely.
Using your logic on passengers paying for insurance....well they still fly Garuda, Air Asia and a few other airlines. As long as it's cheap and they can wear thongs...and there is the rub.
That's why a strong legislation is required for an even playing field. Unfortunately the ATSB report into Mildura ignored the dancing elephants in the room. It almost seems it was written by people who have no RPT experience, because people in that world get it. And I think it's why that world gets that this is such a poor report missing an opportunity to cover the big issues. But it only took 3 years....