Right Choice
If Qantas' No-Frills airline is choosing the A320, with CFM56-5 power plants, that would be the right choice of aircraft for the Australian market. However, the risk for Qantas is that it may significantly lower yield for its full service domestic operation, where it is utilising its 737s. The risk is that it may never attract customers back to a full service and may, in fact, give their high value customers more choice to change. I think Qantas is taking quite a risk but then it is their call. Wasn't Qantas proposing mega-carriers as the right way to go?
At least with A320 it could use the old Ansett facility at Melbourne for a maintenance base as it has docking already suited to A320 and 737. In addition, it could do contract work for Air New Zealand on their A320s there. But what of their engine types?
Either way it would be interesting to see how Qantas organises its manpower for the new carrier. To make the savings it wants to it would be better off going for a 737 fleet and transferring its exisitng domestic manpower to the airline purely on the basis that no new licenses are required for flight and ground crew.
It's an interesting problem. I wish them luck.