Qantas to take the lead on compensation for cancelled flights, and imposed flight changes similar to what is regulated in Europe and offered in the US.
Eg, on a leg by leg basis.
i. If flight is cancelled and no alternative, a full refund plus $500 compensation (domestic) or $1000 compensation (international).
ii. If flight is cancelled and able to change without impact to class travelled, $100 compensation or upgrade to next class.
iii. If flight is cancelled and able to change but with a downgrade in class, refund of fare difference plus $500 compensation (domestic) or $1000 compensation (international).
iv. If not allowed onto a flight without good reason (eg. overbooked and check-in finished early), and travel delayed by more than an hour, $500 compensation (domestic) or $1000 compensation (international)
v. Operational downgrade. Full refund + $100 compensation.
Offering gate compensation can be had in lieu of these penalties, eg if someone is willing to opt for an operational downgrade for $500 cash, then this would release Qantas from having to refund their fare...
This would restore faith in Qantas as a market leader and also put pressure on Virgin to reciprocate.