What a shame. These kind of routes were really something VA had over QF. I would say the fact the SYD-ROK wasn't really at a convenient time for either end probably had more to do with load factors than the route not being viable...
I agree with those sentiments - if VA want to replicate the QF route network, timetable and fleet then they should expect that their customers may start to wonder why we flying VA in the first place? Its lazy and formulaic management.
Given that VA have a slightly different fleet of E190s wouldn't it make sense to capitalize on that and offer more point to point services? We have seen VA be quite aggressive and reactive to QF's woes and mistakes (like putting A330s up against QF ageing B763 in the trancon markets) and its now clear that the QF Group will continue to throw more capacity into the entire market but VA should continue to see exactly where that capacity is being added and where that capacity is being reduced (or product downgraded) and work on that. After all - all else being equal VA must have a lower cost base than QFd. With the addition of TT to the stable they really will have their work cut out for them in the next few years.
For instance - the QFlink dash 8's have a reputation of being "the flying cash registers" for QF. Why is that so? Would they continue to be so if VA throws up a superior product?
Another example - more route specific - what are the yields like on SYD-OOL vs BNE-ISA? Now I recongnize that VA has re-entered the BNE-ISA market before but more food for thought?
Several different theories on how to deal with an incumbent competitor whom is prepared to lose money to retain market share and/or put you out of business. Brian Grey had a theory that to deal with predatory pricing, you have to cover enough of your competitors routes with a
lower cost base so that the predatory pricing sends your competitor broke faster than yourself. In this case it becomes a case of whom has the deeper pockets and whom can tolerate losses longer. Unfortunately for Compass they mis calculated that.
Another theory is the "don't play their game" - play your own game and by your own rules and build your business that way, could also be described as the more "assymetric warfare" type - identify the key weaknesses of your competitor and what you competitor can and cannot do, and beat them on the battlegrounds that you select.