Sounds like you need to read the VA conditions of carriage. I’d start with section 12 which is most relevant to the news article.
These Conditions set out the basis on which we provide our services to you and, among other things, seek to make you aware of the unpredictable nature of air travel and the rights you have as a consumer. We recommend you read these Conditions carefully.
www.virginaustralia.com
My favourite is that VA can substitute the travel for another means if required. That means that if VA was fully booked from MEL-SYD and gave you a greyhounds ticket then technically they’re in the right although you also have the rights to ask for a refund. Section 12.5 says they’re also not eligible for any loss so I’m sorry to the person in the news article but by buying a VA ticket he’s agreed that he can’t claim his loss from them.
News flash is that the grass on the QF/JQ side is no greener and go overseas and things can get worse with ULCCs.