DJ needs to change their business model and just be a full service carrier and compete directly with QF, and then the other 2 low cost jetstar and tiger can compete for the low cost market... theres just no market out there for DJ it seems
DJ always was going to struggle when the economy turned because it couldn't grow fast enough. It can't grow up into a full service airline without on-carriage and international connections. It can't compete on a LCC basis, because it would take considerable effort to cut costs and there are two competitors established there, both with substantial resources and both chipping away at DJ's market share from below. DJ would offer no competitive differentiation. Currently, the DJ market is getting squeezed from above and below and to move one way or the other will involve substantial rebranding and associated marketing with large investments at a time when investors are feeling nervous.
For some unknown reason, DJ wanted to go international on its own with the LAX crossing when it would have made far more sense (in my mind) to partner up with an existing international (SIA, ANZ, United?) and concentrate on shoring up and expanding the domestic market. Now the company is stuck in a quandary. Can't go up and can't go down. It's like getting nibbled to death by ducks.
It is anticipated that business growth in the next decade or two will hinge on providing personalised customer service. Let's see if DJ can innovate in the airline world in this direction and not just stay afloat, but grow. I don't hold out much hope with accountants in charge.