Cheap operations can't work on old equipment in the long run. The maintenance costs on those birds will just be too high. It can only be successful if they are an interim measure and the entire capital cost of the aircraft are written off immediately and they don't intend to keep them serviceable past their next significant maintenance check.
Economic downturns are not bad times to start airlines since one is able to pick up equipment and staff on the cheap - just ask 1Time!
That said, I would not be too keen to fly on 737-200s anymore, they are getting really long in the tooth ... some of them are almost old enough to be grandparents!