This is not what would happen in a bankruptcy in the airlines industry. They would file for Chapter 11 which lets them re-negotiate with creditors instead of h

This is not what would happen in a bankruptcy in the airlines industry. They would file for Chapter 11 which lets them re-negotiate with creditors instead of having to liquidate everything. Who are the creditors? Pilots union, flight attendant union, etc. Sometimes the airlines don't own all their planes, they lease them from a holding company. The airlines would say "take an 10% haircut on benefits the next 5 years or else we will liquidate and you'll get nothing". Then they'll re-emerge from bankruptcy with a healthier balance sheet with future liabilities lowered and a better cash flow.