If an airline is offering tickets at way too low a cost to be sustainable as a business, why is that business allowed to operate at all?
Yes, I don't think that's a bad idea. But in a way that system already exists, as the CAA
should normally not award a company their AOC unless they have a viable business and enough cash to sustain the operations. Having said that, in my opinion most CAAs are in the pockets of airlines and incompetent, at best. In the country where my license was issued the CAA is known to be more of an institution where government employees who's contracts can't be cancelled are given "jobs" just to have an office to sit in.
CP