In essence there were two reasons for the "STB Crash" of 1978 and for the company's substantial accumulated losses that were discovered then. On the one hand substantial losses arose from the cessation of trading of a major partner, the Australian equivalent of STB, and also the termination of a concessionary arrangement between STB and an international airline. Had the company a sound base at that stage, these blows could probably have been weathered, albeit with some strain. The position of the company however was not sound. From 1975 to 1978 it now appears that the actual profits of the company, while considerable, were not as large as was believed at the time. In consequence monies had been paid to NZUSA that were in reality beyond the resources of the company. While both factors, combined, brought the company down, it is difficult to assess one as the primary cause, ahead of the other.

When the realisation of the magnitude of these losses was appreciated, a number of measures were taken to restore the company to a stable footing. The debt to the Australian Union of Students Travel Service was to be repaid with a special purpose $2.00 levy on the International Student Identity Card (ISIC). The general accumulated losses were to be recovered from the trading profit of the company.