I don't necessarily see anything wrong with allowing the whole industry to go belly up. What emerges from the rubble will hopefully be leaner, meaner and used to the hardship of moving cattle from point A to point B. And nobody will be willing to take on the kind of debt required to run an airline without figuring out a way to make money at it (hint: charge people what it really costs to move their sorry @$$e$).
I was not trying to argue for a government bail-out. I'm with you on this one, brother.