warren9, here's the way QAN_Shareholder thinks about these things:
T-Vasis, I wouldn't put much weight on auditing for ensuring the accuracy of transactions between Qantas and Jetstar. I worked as an auditor for a spell and internal transactions are way down the priority list, there is very little risk to the auditor from internal transactions being mis-stated.
However, I agree the argument that JQ is being subsidised as part of some plot to undermine QF is rather unpersuasive. The more prosaic explanation is more likely that parts of QF are uncompetitive and management are justifiably unwilling to continue to pour more cash into parts of the business that can't make a return on capital.
QAN_Shareholder 15 Feb, 2011.
I suspect there are only a handful of executives at Qantas who actually know the
true P&L for subsidiaries.