Sunny,
My point was replying to QFI's point about market penetration in Europe - s/he mentioned "a European tarmac". I specifically steered clear of cost base issues (except to say that if you can lower your cost base, you can charge lower fares for the same margin).
As for eroding the main brand - there have been several LCCs started by mainliners over here.
So, if it charges competitive fares, Jet* on "a European tarmac" can survive. I'm not saying it WILL - just that the European air travel market appears to be rather more accommodating to start-ups than the Australian market. Barely a month goes by without some new tail being spied at EGLL or EGKK (let alone EGSS).