It began domestic operations in 2009 but its first day of flying was hit with delays which continued for months and there was bad publicity over service.
"When we had a look at the market ... we acknowledged we didn't have a great start. We needed to really focus on what we needed to do from a customer point of view," McCarthy said.
"We spent time with people who understood the market strategically and held up a mirror to us and said, 'This is what you look like in New Zealand and this is what you've got to do to make some changes'."
So the airline went back to the drawing board.
The first stage of the project was to advertise and communicate how low-cost carriers operated.
"The first phase was talking about that model - why there is dual-door boarding, why the person checking you on is also on the plane," she said.
The airline then moved into promoting its on-time performance which has improved markedly over the past two years after a change in schedules to avoid the risk of weather delays in Queenstown, improved buy-in from all those turning around aircraft on the ground and better communication with passengers on the need to get to the departure gate on time.
Jetstar tangled with Air New Zealand during its on-time performance campaign with dispute over how valid comparisons were.
The latest stage has been the attempt to deepen its connection to New Zealanders, the environmental campaign and giving $30,000 a quarter to charities.
"This is about working closely at a ground roots level with people in New Zealand to make them realise that we are here to stay," McCarthy said.
Jetstar would still promote low fares but wanted a more rounded brand strategy.
"It is at the heart of who we are [but] in the past [it was] a little too rational and relied too much on price to tell the story so we needed to build in more of an emotional level to the brand."
McCarthy had experience in financial services marketing and said aviation was a tough environment.
"With the shocks that can hit, aviation has got to be one of the most brutal. But my experience is that humans are very forgiving."
The reputation of an airline could be damaged quickly no matter whether it was a low-cost carrier or offered full service, she said.
Mike Lee, a senior lecturer of marketing at Auckland University's business school, said the Jetstar move was positive.
"I think it is a big change in terms of their marketing strategy but it does make sense because the cheap and cheerful brand in any market is never the enviable place to be," Lee said.
"It's incredibly hard to defend because all competitors have to do is match your price and then your unique positioning is gone."
As brands matured they did tend to do more "symbolic positioning".
Helping the environment
Airlines going green to help their brand include:
Jetstar
Supporting the Ngati Awa Heritage Estate located on over 800ha of coastal land in Ohope as part of a carbon offset programme.
Sections of the property have been planted with species attractive to native birds to establish an important habitat for the birds while also encouraging seed dispersal. Gave away 75,000 cabbage tree seeds to newspaper readers.
Air New Zealand
The airline's Environment Trust supports projects that enhance New Zealand's clean, green reputation around the world. The first project was a conservation programme involving more than 40ha on Mangarara Station in Hawkes Bay, including a native reforestation project and pastoral tree planting.
Emirates
Planted 15,000 indigenous trees in the Dubai Desert Conservation Reserve to enhance the habitat for wildlife. The Emirates Wolgan Valley Resort and Spa in Australia works with research institutions to expand knowledge of the valley's wombat and kangaroo populations.
