Originally Posted by
JamesNoBrakes
The usual reason is due process, the FAA doesn't have magic ears and eyes to know everything that is going on. Every once and a while we get a report from an employee about crazy things happening at a carrier, and every once and a while, they turn out to be true, but if no one is actually bringing that to the FAA, there may not be the legal authority to just "shut them down". The FAA can't do that on a whim.
The FAA is fully aware of their issues and flying with expired manuals, they're responsible to overview their financial ability to operate, but the GSO FSDO is looking the other way as they enjoy having a 121 Carrier, gives them job security. Any other FSDO would have already killed their money laundering scheme.
Pilots agreed to fly Peak Season and get full pay on Jan 15th... Still no honey, planes are still moving. They have no excuses anymore, they bring an unfair competition to other carriers that actually pay their bills, unlike being subsidized by the pilots. Oh well. Good luck to them.