They have now adopted a scheduled services from the UK to the Mediterranean model, setting themselves against Ryanair, Easy and Jet2. No more competing in the charter market that has seen them do so well over the years.
They can't charge any extra than competitors, but have significantly higher costs. In an industry with wafer thin margins, its never going to work. You can almost hear Alan Sugar sitting in a boardroom saying "basic business principles seem to have gone out the window".
As was said earlier in this thread it seems great being offered old school terms and conditions, but if your competing against O'Leary, they'll be for nothing when the competition has you for breakfast. Remember the first class passenger in Titanic refusing a life jacket, stating he was dressed in his finest and prepared to go down as a gentleman?