Australian aviation’s outbreak of rational behaviour is holding.

A week after Virgin Airways got its long-awaited IPO over the line by pledging to investors that it would stick to its knitting – solely focused on the domestic market, squarely aimed at the middle of the market, carefully avoiding the sort of growth plans that may spark a price war – Qantas chief executive Vanessa Hudson is showing the market that she too will home in on the markets that deliver the biggest returns.