It really does show that despite all the spin the route was failing.
I don't understand why they chose MEL. The route can't (and won't) sustain those extra seats. We'll see NZ slash flights within a few months which simply means less choice. JQ failed on the route and while it's $200 return in taxes to MEL you simply can't see prices drop further. It's not possible unless airlines want to sell seats at a loss. WLG-BNE may have been a lot more logical.
Both NZ and QF are also going to be very annoyed at SQ having a subsidy on each and every flight when they don't get one.