Was talking today to 2 businessmen who book and fly Qantas for NZ domestic flights (due to international QF relationship) They are NOT happy that flights they have booked in advance will now be operated by Jetstar. They have already experienced this with Jetstar taking over the CHC Tasman routes, and it wasn't a good experience for them.
Whilst Jetconnect wasn't especially profitable, they still had some business contracts and loyalty for being "full service". Now that is gone, they will probably lose their high yield business traffic to Air NZ...domestically and Internationally.
As for Freedom/Zeal...it is no more. The A320 operation AOC is being transferred back to Air NZ and the separate management team disbanded. It was never going to work as they took the (relatively) low cost Freedom operation, and changed all it's cheaper supplier contracts (ground handling/catering/engineering etc) over to the same ones as Air NZ! Only thing cheaper in the end was the Flight Attendants. Waste of money.
Air NZ think they can compete on the domestic and Tasman/Pacific routes with their current product...they don't need to go absolute lowest common denominator.
Personally I hope they are right.