Pietermaritzburg - Velvet Sky outlined a rescue plan involving flights to other African countries before the Pietermaritzburg High Court on Wednesday.
Lawyers acting for the grounded low-cost airline have put forward a plan which would involve foreign finance.
Lawyers acting for a major creditor and Velvet Sky were discussing terms and developments. They said they would return to the high court later on Wednesday.
BP Southern Africa has filed papers for the liquidation of the airline which has been flying for less than a year, because it is allegedly in arrears on its fuel bill.
On February 24, BP Southern Africa applied to the court for the provisional liquidation of the airline, which allegedly owes BP R29m for aviation fuel.
The airline suspended flights last Monday and customers with tickets do not know if they will get refunds or be able to reschedule their bookings.