This business model depended on getting a good price for the used B737s that are to be sold on and the yield and load factors holding up.
Neither of these is proving to be the case.
So $30 Million is not a good price for a 7 year old 737 bought for probably $25 M or less ? What is the price they should be getting then.
As of December / January RBS Aviation take back 16 737's that were a sale and lease back deal.
I try and find holes in the their strategy and there are a few but not many.
Moving into Spain and Italy when competition is collapsing seems a pretty decent strategy, Easyjet seem to agree as they doing the same thing.