The new Cabair has to find about £280,000 for the assets and a sizable amount more to fund the working capital.
That can come from a number of sources, shareholders putting their money at risk in the form of shares, shareholders lending the new company money, less risky, loans from financiers and last of all deposits and upfront payments by students, the chapest form of borrowing and with the least risk for the company.
With the exception of student upfront payments, the other sources of funding are expensive, and with the track record of this bit of aviation probably carries a substantial risk premuim built into the interest rates. The satisfactory servicing of this debt is vital and when it cannot happen then the pack of cards collapses. The cost of servicing this debt is paid ultimately by the customers (students).
(You can see why getting students to pay up front looks attractive and why a "discount" is offered to make people think they are getting a bargain.)
The problem with a business such as this is that its difficult to control costs. If they own and operate their own kit, then they take the risk, if they dont, then they are subject to others not letting them down. If you are in a strong position then you have more clout, if not then you have to take what you get.
Anyone who deals with the new Cabair will remember what they lost with the old Cabair and try and recover some of that. Who pays for that, the students in the end.
Some musings, thats all.