Lowerlobe,
Management tell us we are infact 30% cheaper to operate than QF and GD is quoted as wanting JQ int to be 40% cheaper.
The difference between AO and JQ is that AO will offer full service economy and premium economy which suits the Japan market where as JQ int will offer similar to domestic buy your own food and pay for inflight entertainment which does not suit the Japan market. However things are very changeable and the airline industry is no longer how it was years ago and I think we are all in for lots more change ! Maybe AO will be absorbed into JQ oneday, maybe not, time will tell. My theory is that lower cost divisions will be forced to compete with each other to get flying and exist then eventually when costs are where the QF group want them it will all be re branded QF again with the lower costs in place. Thats where I agree with your QF brand loyalty theory but without the costs. Time will tell.