As alluded to earlier, it was known in the industry that they were under financial pressure. What action did the regulator take and their justification for their actions or inaction as the case may be.....
This is not a first to happen in the industry in recent years, SAW and OzJet both went under with advanced purchase revenue spent leaving passengers seriously exposed. Taxpayers picked up the tab to a degree with SAW as the government contract awarded to them to fly to Christmas and Cocos Island stayed at Cobham and those passengers who held a SAW ticket were not charged again according to a couple of mates who had booked on SAW.
It is too easy for people with huge ambition's/ego's (cross out which one doesn't apply) to start in this business without the nessecary financial means, promise the world to the public or FIFO industry, provide competition which the public all want but then go broke. In the mean time existing profitable operators all take a hit as well in the mean time. There is a reason why existing operators charge what they charge..... And the same reason they remain flying year after year.
Not wanting to get of the tread to far but if it were Tiger in the same position as AA a month or so back when the regulator meet with them would they have taken a different course of action? The difference is of course that Tiger are well funded and pouring money into the operation to fix it at present.
Good luck to all the AA crew and staff on finding jobs quickly, events such as this are never pleasant.