They are targeting routes with low fair yields and little demand for paid business class. That generally means tourist destinations. Few people pay for business class seats to places like Uluru and Alice Springs, apart form people using up sectors on low-yield RTW fares. Of course these is lots of demand for award business class seats to these destinations, but that don't put bread on the table at the QF board meetings.

As much as I don't like to see routes move from mainline QF to JQ, I can understand why they are doing it and I don't think we have seen the end of it yet. There are still a lot of A320's to be delivered into Australia with a bright orange star on the tail. They will be used somewhere!