Lowerlobe -
The problem with your argument is that J* is already Air Mini-me. They operate right at the edge in terms of minimum cabin crew on p!ss poor contracts, flight crew on an EBA that would be thrown out by QF mainline pilots, duty hours, administration support that is totally under resourced, limited engineering support compared to Daddy's company, too few ground staff that are run ragged etc etc. Need I go on?
Additionally, EGH was created as the J*/Air Mini-me ground support organisation that runs on the smell of an oily rag. And it is indeed a rag tag organisation that has largely aviation inexperienced and unqualified people driving power push units etc etc. You simply don't get any cheaper than this.
In summary, there just ain't any margin left to create a yet lower cost operation.
This is the bottom. We are going to have to live with it or sink.