Virgin Blue seem to be doing well in Oz.
3 flights in a few days, cheaper than Quantas by ~A$50 each time (at short notice), took off on time and landed on time. Cabin staff got a bit bored on one flight with no catering etc to do, so did a free face painting service for kids. Brand new 737-800s. Check in fast and efficient.
One or two things Easyjet could learn (and 100s for BA)