I'm getting a bit lost here how the demise of an operator who lasted less than 12 months and had a single aircraft has rolled on to a discussion of the whole International Leisure Group.
Yes, there was a financial downturn at the time, just like there is now. Also along the way there have been various wars, 9/11, the Volcano, SARS, Foot and Mouth, oil price skyrocketing, new aircraft delivered years late, and all sorts of other potential excuses. Yet most carriers have managed to get through all this, and the number of airline failures each year remains small. The majority survive.
Airlines go out of business for one simple reason, that their managements have taken decisions that have led them to run out of cash. As a business you can make losses many times, but you only run out of cash once. And it's the managements No 1 job to prevent that happening, and it's down to them, not the wider world, if they don't achieve this.