The vast majority of JQ customers will continue to fly JQ as they travel on price alone. Most generally don't care how bad they felt is was last time - as long as they save a buck.
In terms of branding I think the two brands are distingiushed enough for there not to be a conflict. If someone was to have a bad experience on JQ (it
could happen
) I seriously doubt it will prevent them from flying on to LAX or PER on QF. In terms of product they are worlds apart. Whilst everyone knows JQ is owned by QF I think no one could mistake one for the other.
I would argue that JQ actually makes QF look better domestically! Notice how the travelling public don't whinge about QF catering anymore? On short flights you actually get LESS than before (though quality is better). On longer flights you get more but the quality is pathetic (no hot breakfast except East Coast- PER flights). You could use this logic in other areas too. Like poor delay handling and people not liking the boarding procedure... All these JQ stuff ups and inconveniences make QF look like more of an attractive option. One might be willing to spend the extra dollars next time? Even if one kept flying JQ you may still remember your last experience on QF was better.