Don't believe they ever went out of business, they just axed the B-747 fleet & some of the short haul fleet. The Palmair European contract has continued to operate with 2x B-737-200 throughout all the disruption, though Bath Travel were approached by several competitors to take over all of the Palmair flying programme, Astraeus offered a superb package apparently.
What is strange is that European are calling back experienced B-747 crews, as they appear to be reinstating a long haul fleet again, though I would imagine on a smaller scale. Will be interesting to see how it all go's. They are also seriously looking to replace the B-737-200 over the next few years, perhaps a natural progression to the 300 series!
