Originally Posted by PhilH
You've kind of answered your own question! Don't forget either that its 2 stops to SYD (BAH and SIN usually I think) whereas all the other carriers will offer 1 stop. It all about competitive advantage really. If GF didn't offer basement prices, then no-one would fly them as you point out the product isn't great, its 2 stops and there aren't many mileage partners etc. Also don't forget the extreme competition from Emirates (mainly) and the up and coming carriers Qatar and Etihad.
And a further general consideration is how much Middle Eastern airlines are supported by their oil-rich owners of course.
Their product isn't GREAT but it's not BAD. Definately as good as OS, which seems to be the next cheapest at around $600USD more RT.
GF is a member of Asia Miles, and Asia Miles is a good enough program to keep me flying GF. Their redemption levels are rather generous even if they do not offer elite status.