Yes, just to throw this into the mix. What would happen if EK bought Jetstar, moved it upmarket and rebranded it Emirates Australia? Or Emirates Oceania or something. Gives them domestic feed, and if they keep some SIN services, connections through their Singapore mini hub. I'm not suggesting this is likely, just throwing it open for discussion.
Just as an extra thought, the 777-200s that EK are about to phase out in Dubai, would make excellent transcontinental aircraft for the Australian Coast to Coast network. And they owe nothing. Configured in a two class cabin, with Emirates on board service standards and airport lounges, it would make a killer product.
Open a Sydney, Melbourne or Perth base for current EK crew who want to go home, the rest of the operation can be run from Network Control in Dubai, as it is now....chuck in Jetsars domestic fleet..wow, I am amazing my self at the out of the box thinking.
Change the brand to China Southern and that is exactly what will happen.
The genie is out of the bottle and Qantas knows it. They can't afford to keep Jetstar, but they can't afford to sell it either.
The option is to wind it back into mainline and cut the losses or continue to feed it. At this stage they continue to feed it, as the shareholders want to see a return in their investment. I'd imagine a change of management would see it wound back into Qantas. Domestically at least anyway.