It is about both viability and protection of creditors.
History is full of companies that have imploded in a spectacular manner, Ozjet and SkyAirWorld being two in recent history that both left numerous creditors very (very very) much out of pocket. And not so recently, Ansett and Compass who did the similar. And that is to name just four.
So whilst it may be nice, warm and fuzzy to a FNQ company like SKYTRANS (well the original one was FNQ!!) to work, I can't see that as a reason for putting my taxes into propping up something that aint working.
And 4 Holer, since you mentioned cargo, I guess you could include HeavyLift Cargo as a "no longer" with us Company. However since none of that companies airframes were registered in Aus, I don't think you can blame the Regulator for its demise, could you.