Turn Jetstar Loose?
Not sure if this would be such a great idea.
Consider the consequences:
Qantas immediately needs at least 15 A320 / 737 size A/C to resume 'serveices' to ports on which it currently uses Jetstar to carry the pax(LT, HBA, CG, MC etc). Yes I can already hear pavlov's pilots, however, under the current QF cost structure the result would be some $750M of Capital being tied up to make a LOSS, definately not the stuff Macbank are known for.
Meanwhile, the shackles are removed from Jetstar. Avalon is dropped in favour of Tulla. Direct Sydney - Brisbane, Perth etc. etc. A removal of the 'low service' image in a move not dissimilar to Virgin Blue. Depending on the new owner (SQ? Emirates?) expansion could be more aggressive and targetted directly at QF and DJ's higher yield (Brand name change / reposition).
Whilst all this was going on, Virginblue would be maximising every possible advantage.
At the end of the day, with the lowest cost per ASK of any major airline in AUS it is too attractive a proposition to a potential suitor. The brand may not be known for quality, but it is for price, and VERY well known. Brand respositioning occurs reguarly in business. Like Virgin Blue, Jetstar would aim for the lowest hanging 'buisness' fruit.
I have no doubt that QF management would be aware of far more reasons than this 'not' to cut Jetstar loose. If, however, as many of my learned colleagues suggest, Jetstar is not profitable, then the comprimise may be to simply return the a/c to QF colours ala the Qantas link days.
Better to keep Rosemary's baby in the womb me thinks.