JQ NZ is obviously loss making. God knows that if it was profitable, AJ would sing it from the roofs.
QF know there is only one way to attract the business passenger and to do that they would need to replicate what JB did at VA, which is rebrand it, take it upmarket whilst trying to preserve the underlying lower cost base. This would mean giving up the Jetstar name and adopting something else (I don't know but Qantas sounds nice but to attract New Zealanders, it may have to be a little less obviously Australian.)
Let's be honest: Serious people, people who make serious decisions and direct serious expenditures, hate Jetstar. Jetstar can fix all of their problems and win over market share, but to do so means they would have to become.....Qantas.
I think AJ would love JQ to become Qantas on the basis I described above but he has shown himself to be completely incapable of managing the politics of driving down the cost base without terminally disengaging his entire workforce.