The routes are unprofitable in this climate with only one carrier and now Qantas comes in to be unprofitable as well. As already said, they feel the heat, they feel threatened, that is why the low blow tactics are coming into play.
Size is not a reliable indicator of a companies success, if you invest solely based on market cap you open yourself up to disappointment. As I said Ansett was huge and they went bust, Virgin was also massive and they went bust too. Its not that Virgin doesn't want those aircraft that REX now has its that they simply can't keep them. They went into administration remember?
As already mentioned, the smaller player has the advantage of adapting to the new climate.
Yes Qantas has a $9.2 billion market cap and Rex has a $189 million market cap. Still Rex is the one to fly and commemorate Australia Day while Qantas figures out what to do with the mess they are in.
REX Price at posting:
$1.70 Sentiment: Buy Disclosure: Held
(20min delay)