To all airlines' customer service sections:
Is there any harm in treating passengers like human beings and telling them the truth?
If there is a fault beyond one's control, so be it. You can't hide it nor help it, so you might as well face up to it. If, and I strongly say if, passengers are reasonable and rational, they'll take it in their stride (after all, given their position, what would they do?). Not more of this "I won't fly Jetstar again" BS...what an irrational thing to say.
Unfortunately, Jetstar are the centre of another media circus. As a result, people make exaggerated objections and everyone has to go into damage control (read: self-destruct) mode. No one to blame except themselves.