Ceilidh From , joined Dec 1969, posts, RR:
Reply 1, posted (14 years 10 months 2 weeks 6 days 12 hours ago) and read 1595 times:
The main reason they went bust was that they had overextended themselves financially both with new aircraft and with the Transmeridian investment. At the same time, their income was almost entirely from third world airlines with the cashflow problems that that always entails.
Had they used cheap old aircraft they'd have been fine - they could have afforded to have parked them rather than doing deals at any price - even when it means losing money - as they have been.