The LCC model is a business model that works.
First thing to remember is that Alan Joyce is really a frustrated pilot!! I have read in a interview him saying that he really wanted to fly but for whatever reason didn't.
Secondly why is there a move worldwide from all the LCC to increase their yields and move closer to a legacy airline model?
The Big European two are moving toward package deals hiding the airfare in the total price.
Southwest are looking at targeting the business sector.
Jetstar is not a real LCC they are just there to be used to protect Qantas from losing market share and for leverage in QF IR negotiations. They are way to close to QF in so many ways to be considered a real LCC!!
I think that is why some people get angry over the wages issue. They see it as QF just trying to screw their own. However of the few Jetstar people I have met they all think it is a great job and all things considered are happy.