Aviation industry analysts are torn over whether there is money to be made for those who dare to tread on the runway.

Low-cost airline 1Time says its scheduled services will go ahead despite filing for business rescue to dig it out of R320-million of debt.

The troubled Velvet Sky airline, which owes R100-million to creditors, has been liquidated by the Pietermaritzburg High Court.

Velvet Sky’s licence agreement has a clause that stipulates it must set aside sufficient funds to pay back cash clients should it go out of business.

Troubled low-cost airline Velvet Sky stands accused by petrol giant BP of resorting to "desperate cash-raising measures to stave off bankruptcy".

When big airline operators are losing money it is no wonder that the smaller guys are cautious writes <strong>Phillip de Wet</strong>.

All Velvet Sky flights have been suspended until March 5, while the airline reconstitutes its board and balance sheet and realigns its strategy.