To avoid being sued, let me preface this by saying that this is my opinion and does not constitute an accusation.
The management of Air South squandered their start up capital. No ifs, ands, or buts.
Certain members of their Board of Directors left because the President/CEO of the firm would not take their sage advice...ie quit wasting money.
A lot of airlines start up and get their start up money by stating that they wish to emulate the Southwest Airlines example.
That is all fine and good. The problem arises when push comes to shove. Nobody really wants to emulate their early-years example.
eg Management going out to the airport when loads are heavy to help work a flight (incl loading baggage and cleaning the cabin)
eg President/Vice President/Senior management doing without company cars...or worse, they drive an AMC Gremlin painted up just like the airplane as a company car.
eg Furnishing the offices by going to the office furniture and equipment auctions on the weekend.
Southwest did those sorts of things. The failed start ups typically want to live high on the food chain from the git-go and they thing revenue will catch up.
There is one key to success in the airline business. It was put very elegantly by M. Lamar Muse, the first president of Southwest Airlines Co. Specifically, "get profitable before you run out of money."