QFInsider,
I can't comment on any legal/non-legal stuff, but might I address your point about brand penetration... ??
From a European perspective, there are new carriers popping up all the time. Some survive, some don't - but the main driver in the UK/Europe is price. Basically, as long as the price is right and the aircraft looks tickety-boo, the punters will be there. It takes a fair bit before they won't be (Phuket Air a recent example).
The brand-penetration thing is less important in Europe than Aus - the European market is sooo big that the 'build it and they'll come' philosophy can work (ie. enough punters will give it a go). We wouldn't have any LCCs if it didn't (eg. Ryanair - zero to bigger market cap than BA in not-very-long, plus all the others like Ezy, etc.). Even VS was a start-up only about 20 years ago. Even in Aus, lack of brand penetration can be overcome - EK had no brand penetration in Aus, eight years ago and now they're running 40-odd flights a week into the place. Even MU can justify its services (because they charge very cheap fares).
I'm not making a comment on whether or not J* is/will be good, bad or otherwise or if it will/won't/should/shouldn't fail - just that the European market does see things a bit differently to the Aus market. If the cost base means the fares are 'right' (to get bums on seats) then it'll be a go-er, at least from punters originating here.