Didn't Indonesias Lion Air have the same idea a while back ?
Air Asia operate out of Malaysia, Indonesia and Thailand, all have a far lower cost base than Australia. Assuming they employ Australians their labour costs
would be similar to Tiger/Jetstar. Back office stuff could be done from KL, but JQ are outsourcing to Manila, and Tiger to Singapore so little advantage. Yet another three airline battle.
Extensive international network out of KL so possibly BNE, SYD, CNS could be served with the A330 and DRW with the A320.
Absolutely gorgeous flight attendents, worth flying on just for them.