True, you could be right.
It's not just transfer pricing though....so many of an airline's costs are fixed and need to be allocated on an arbitrary basis. As with transfer pricing hard always to be consistent. Even revenue isn't always that easy to allocate.
Then there's the issue of Tiger, Lion, Virgin et al. Dixon just had to something and JQ was that something. It enabled him to hold off the mongol hordes.
I suspect the truth is in fact in there somewhere, though hard to fathom, and it is commercial property so not going to be easy to find.
Jetstar, can make money where QF mainline can't with reduced labour costs, a single training path based on the Airbus CCQ efficiencies, higher seat density and few of the "frills" that do cost money and may well not pay for themselves in QF.
It's not perfect...but nearly every major airline has done something similar...leveraging off its existing cost and infrastucture base. Dixon is one of the few people to make it work.....albeit with the caveat..."thus far".