Well I think they need to start finding there focus especially at Luton where there flying programme has been struggling due to competition. They need to find gaps in Luton's network but also maybe offer more conveniently timed flights to places like Madrid to positively compete with easyJet.
It's more a case that they need to find a solid concept, and more importantly stick with it! It's not sustainable to just build a network by cherry-picking at routes that currently have little competition... and I fear that's what they are trying to do.
That said, it would also be difficult for them to compete on say MAD with EZY not only on price but just as crucially for much of that market... on frequency.