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Unfortunately as the business cycle turned, the company was unable to continue making profits, reporting losses. Their expenses were a lot higher than their interest income. This burdened the company with a lot of debt, and hence pushed the company to the brink of bankruptcy.
Airline manufacturing is one of the riskiest industries. The major cost of airline industries is money spent on research and development. Products of the aerospace industries are very expensive, a lot of money is spent on researching products that might not even leave the drawing board, even if the product finally leave the drawing boards, there is no guarantee that they will be bought...
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