Replies to post #33666 on Baltia Air Lines Inc. (fka BLTA)

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I think you meant "Air Traffic Liability". I had to ask mom who was an accountant for PSA back in the 80s, and subsequently USAir. She remembered "Air Traffic Liability". Every company refers to it as a line item differently, however, it is treated as deferred revenue, such as the treatment how you described eloquently.

My point being, is your last comma. This carrier does not have the ability to fulfill its contracts, therefore, aging the liability as a usual carrier does not apply at this point. That was my point of my original post.

Spend the cash, the liability sits. The company has to adopt a policy on aged liability, but that policy does not apply to a company that cannot fulfill the contract.

That is how bankruptcies occur on start ups.