Originally Posted by
Lead Balloon
There’s such a fine line between a journey towards a return on investment and a Ponzi scheme.
Unfortunately a lot of these start up airlines use forward revenue on future routes to prey on investors to make things look better than they are, when the yields will never be enough for a stable route structure that is not constantly expanding. Which in Australia there is only so much expansion available before you hit a wall of very low yield. When expansion stops the real returns are evident and investors scamper for the shadows.