After that, the Qantas assets, including the brand, will be up for auction and the only buyer will be....Jetstar. Nobody else can bid because Jetstar controls the domestic market and can crush any emerging competitor.
The flaw in this argument is that, in the meantime, VA would've become infinitely more stronger and the domestic franchise of QF would've lost massive value. It also pre-supposes that the privatised JQ would be the only interested party in a sale process that would be controlled by receivers rather than the board. What would happen if a Chinese airline or EK saw this as a one-in-a-lifetime opportunity to buy into Australian domestic aviation on the cheap?
Jetstar then rebrands itself as Qantas and ... job done. Qantas is now a completely privately held business and proceeds to rape Australian travellers yet again.
Even allowing for the above, the QANTAS brand would be irreparably damaged with millions of pi$$ed off FF members who have lost value etc. If you want to preserve any value in a brand name this is not how you do it.