How about copying Qantas with a two brand strategy, i.e.
V Australia (or Virgin Blue if they can sort out the royalty issues) which would cover:
- the 777's
- two class 737's, with a real business class, included meals & AV in the fare, to fly Syd/Mel/Bne and Syd/Mel to Per (perhaps with new 737-900's?)
Pacific Blue:
- 737's & e-jets in single class LCC configuration (with the existing exit row "Blue Zone") flying all other international and domestic routes
- charge for everything like a LCC
V Australia (or Virgin Blue if they can sort out the royalty issues) which would cover:
- the 777's
- two class 737's, with a real business class, included meals & AV in the fare, to fly Syd/Mel/Bne and Syd/Mel to Per (perhaps with new 737-900's?)
Pacific Blue:
- 737's & e-jets in single class LCC configuration (with the existing exit row "Blue Zone") flying all other international and domestic routes
- charge for everything like a LCC