Putting aside the folly that is J* Asia, simply put Joyce abjectly failed to identify the changing business conditions and emerging threat of Virgin under the stewardship of JB.
He alone is responsible for the over capacity in the market. It is a direct result of his inflexible 65% line in the sand.
Virgin was organically increasing market share by improving its product (ably assisted by Joyce and Clifford's industrial relations strategy)and as a result Joyce had to put 2 planes in the air for every one that Borghetti added, so he could claim to be maintaining his 65%, whether demand was there or not.
The reality of a duopoly that provides a similar product is that most likely the market share will fluctuate and eventually stabilise around the 50% level, as was the case in Oz prior to deregulation. If Joyce had been willing to accept that as being a reasonable outcome of having a genuine competitor back in the market ( rather than trying win a war of attrition) and adjusted capacity accordingly, yields would have held up and he would not find himself in the position he is now in. Blindly assuming that because he was the 800lb gorilla he could dictate to the market what his share should be shows the type of hubris that has ruined many a good company.
I don't want to see Qantas fail, but any rescue package has to come with Joyce and Clifford resignation attached.