I think that is a simplistic view...it doesn't take long for the actuaries to adjust rates for a company with a bad risk profile.
How long would CASA sit by without suspending an AOC for a company that was having accidents along the lines of what so nearly happened in ML and a litany of other less serious incidents that were attributable to a combination training standards and innexperience?
You can't get insurance for a CEO running a company into financial peril.
Then perhaps CEOs of airlines wanna be a bit more circumspect...if you don't call spiralling insurance premiums and Law suites from victim's families and regulatory restrictions on a companies ability to function 'financial peril' what is it called?
I don't want to sound alarmist but Australia's aviation industry can only be 'lucky' for so long....it was a safe as it was for many years not from luck but from high standards....now it is, in some segments, relying on luck. Because the industry is so small even 1 major hull loss with 150-200 fatalities will have a relatively enormous effect on any statistic the insurance industry, for starters, relies on for calculating risk worthiness.