As you mentioned, currently you can only redeem on Australian Airlines services. Hopefully with the expansion of the airline over the next 18 months that policy will be reviewed.

Initially the airline is primarily targeting Asian travellers and tour groups, and from all reports it has been quite successful as Australian is claiming bookings of more than 70% through to April 03. However my feeling is that once the airline is expanded to more than one Australian port they may need to target Australian travellers. Earning miles would be one potentially effective way of getting Australians on-board.

Australian is being dubbed a 'low-cost' carrier, however this more accurately refers to operational costs. The ticket prices are not discount fares, therefore I think there may be some consumer pressure on Qantas to enable people to earn miles on these routes.

Just my two cents worth, but I for one would gladly fly Australian if I could earn miles.