Lead I totally agree with your and Sunnies take on the situation.
I see no logic in what is happening now, even a self licking ice cream, as you so eloquently put it, melts eventually.
The decline of the industry is so apparent its sickening, and it makes no sense to continue along the same path, its self defeating.
When its cheaper to ferry a medium sized corporate jet all the way to the US for a major maintenance check it becomes absurd.
Major international airlines are pulling their flying training out of Australia to NZ or Canada, its obvious where the industry is heading and why, but they still persist.
At what point will someone in Authority finally step up and say enough with this experiment.
Then again, look at the debacle our energy industry has become, that threatens to consign the whole of Australia to absolute third world status.
I really despair for the future my grandchildren will face.