SKimming the ASX announcement, They are going to ride the Jetstar model all the way into the crash. It seems clear to me that since its the bosses baby, nothing bad can be said about that business model on pain of death.
The reason for the non performance of the Jetstar Asia franchises is that they are "in start up phase" and that there are "regulatory barriers" that they imply will be overcome through having "strong local partners", meaning that they expect that their alleged Chinese business partners will do the palm greasing and allow Qantas to make a profit.
Let me tell you Alan that NO ONE, gets to take profit out of the middle kingdom without a huge fight and you don't have the ability to do that. Furthermore, the youngest Chinese office boy has more "face" than you and your Board, and your "strong local partners" will suddenly turn on you when they have calculated that they have taken you for your last cent.
For the avoidance of doubt, Qantas/Jestras foray into Asia will NEVER earn a meaningful return on investmenr for the Qantas group
I flew from Brisbane to Melbourne last week and I was surprised by the crush of people going through the security screening area closest to Jetstar checkin - wall to wall Bogans. Walking further down the hall to the QF gates I found an almost cloister like silence...and no bogans. The QF aircraft wasn't full either. Their HAS to be cannibalisation of Domestic yields by Jetstar.
To put that another way, Qantas is going to grow itself to death - its called "profitless growth" and it is the first temptaion for many managers; buying market share.