especially the australian airline example and perhaps with much broader applicability, I know that companies are completely happy with managable competition (Australian domestic airlines are functionally 2 players, and similarly across many large industries here that's true) where over time once they can establish profitable gimmicks neither party really wants to rock the boat and they're able to lock in that margin forever more. It doesn't suit established players to compete on that, they both open up losing situations in the game theory compared to silent non-competition.
In high capital businesses like airlines and supermarkets it seems to play out all over the place these days.
In high capital businesses like airlines and supermarkets it seems to play out all over the place these days.