Waggon rut,
You are quite correct, my post wasn't clear. For NOW, as opposed to the other charter start-ups they have BOTH requirements ( Start up capital AND an ATOL).
I'm really not sure why NOW did not look at the option of operating on someone else's AOC to start with. It would significantly reduce the initial funding requirement, got the name in front of the Public, and given them some income. It would also have been a lower risk method of determining the validity of the business model.
Iceland Express is a good example at the moment. They have succeeded in securing a sizeable chunk of their market, have increased the overall traffic on the routes they cover, and will be adding a second aircraft in April ( According to industry newspapers).
I understand NOW have been ringing around trying to place their pilots elsewhere.