As far that the reduction of the fleet goes...this was due to a number of 500's leases comes to an end and the lending company wanted the same price as for -300's so Baby didnt renew with them. Since then Baby have found -300's to replace those aircraft so they havent downsized the fleet for any other reason like going bust. As for ticket sales they have recently had RECORD bookings mounting way higher than ever before added to that new routes which are doing very well etc etc etc.
With the EZY and Ryanair moving into birmingham, The only thing EZY are doing is flying into BHX from GVA and thats it and out of all the routes ryanair will be doing out of birmingham only 2 or 3 collide with baby's out of the 25 routes they have.
So going bust....i doubt VERY much.