because they have no operational experience in running an airline successfully -- so in the meantime, build lounges! (apparently they are successful at that)
Well, I was in the Hong Kong lounge recently and was far from impressed with the concrete floor. For the money spent, I WAS expecting more than the cheap looking decor. The range of food and drink was less too. The redeeming features were that it was large and the staff were great.
Not too successful, I think, and I believe that once again, they have frittered away shareholders money by being conned into spending too muh.