James Packer is right.
He never said that it would have been better for the airline, just the shareholders at the time.
I sold all of my shares at $5.80 figuring that it was wildly over-priced at that level. From a novice investor point of view it was by far the best outcome for me as a shareholder. As an employee my skills aren't as portable as my capital so I get to watch the train wreck forever.
As an aside a more savvy friend bought at $5.75. I begged and cajoled him to get out since then...he finally capitulated at $1.25. While I wonder at the shareholders' behaviour knowing what I do I guess many of them are the old-fashioned buy-and-hold variety, expecting that the board and ASIC will vouchsafe their funds over time. Including my otherwise sharp friend.