I recall both Laker and Air Europe...leased almost everything, aircraft, equipment, property...as their yields dropped their cash reserves dropped lower and lower...come a sudden dip they had nothing to call upon in the bank and nothing to borrow against = collapse...also happened to a number of other carriers in recent years...
I expect this can eventually happen to any of the low cost carriers who are not building up an asset base...the cycle goes round...
Last edited by Boss Raptor; 5th October 2002 at 08:37.