More or less sums it up torquelink. Charge too much, people don't buy your product. Don't charge enough, you don't make money. Get it wrong and you end up stuck in a never-ending spiral of increasing prices and decreasing customers, ending in the inevitable.
EZY and others market very aggressively whereas BE don't seem to have that same killer instinct, which as far as I can see is where their problem lies. The option of different "levels" of service i.e. the Standard, New Economy and Plus is a good idea which I like, and hopefully it will be offered by other airlines, but I don't know anyone who's ever taken the "plus" option, primarily because it's too pricey, and then you're just as well off flying with BA. In some cases the "Plus" is more expensive than the likes of BA, a lot more. Ultimately you need to charge enough in order to make money, but also don't charge so much that customers recoil at the price tag and end up going elsewhere for a better deal, in which case you're back to square one.
It might be all about the profit for the shareholders, but without the customers, there won't be anythng for the shareholders...
Smithy