Sunny, I hope your knowledge of things aviation is a lot better than your knowledge of Trade Practices Law.
Firstly the article makes no mention of the proposed fare between NTL and BNE, so how do you conclude predatory pricing?
Secondly, section 2 of the Trade Practices Act states that the Act's object is to promote competition. I would suggest that that is what J* are providing; competition!
Thirdly, your hypothetical example of J* charging $5 less than
VB is hardly predatory pricing.
To start with, to establish a case of predatory pricing, the predator needs to have market power. I would suggest that
VB has more market power than J*.
The other thing is to establish the purpose for the price cuts.
Is it normal competive behaviour, or designed to drive out the competition?
Contrary to your implication, predatory pricing is very hard to prove, and I don't think that $5 less than the competition would constitute predatory pricing, but rather just being competitive, the very thing the TPA and the ACCC encourages.