Because they owed more than they had in the bank.
This statement reflects what is so sad about you.
I believe in your heart you feel you are a good union man because you follow and support what higher ups in the Union feed you. The problem is you assume that they are good Union men when they are sell outs.
So they owed more than they had in the bank. Who doesn't? Are you saying that when I borrowed $100,000 to buy my home and only had $2000 in the bank I should have been allowed to declare bankruptcy, keep whatever I wanted -even 500 new cars in the driveway, not pay anybody what I agreed to even if I was bringing in per year as much as I owed? Corporations are immortal, they do not retire, they either are producing or they no longer exist. Cash flow is critical, not debt, as long as the cash flow is sufficient Debt is not really a problem, the banks like it that way. Through debts Corporations simply pump their profits right to the bank.
AA brought in $25 billion last year. They had $5 billion in cash, yes it was borrowed cash but thats how banks make their money. Most corporations operate off borrowed money because thats how banks are able to skim off the profits, if they banks didn't do that then corporations would face more pressure from workers, both union and non-union. In labor intensive companies they will always operate with thin margins and siphon off the money to corporations that are not vulnerable to labor, its been that ways for over 100 years. Thats why they don't complain about paying $2 million fees to refinance a loan, or $500 for something that costs $5 to make or $4500 landing fees, or $4/gallon for Kerosene or $20 million bonuses for executives.
I would encourage you to watch the Mike Quill Senator Hartley debate on youtube. It was filmed in 1961. Companies have always claimed poverty as an excuse to try and screw workers, once we had leaders who would challenge them, now we have the likes of you and those you support. Hartley made the claim that Unions ask for increases the company cant afford (while they are siphoning off funds elsewhere) and Quill brought up how after they struck a company that claimed they didn't have any money for increases they all of a sudden found all the money they needed. Maybe the banks, the vendors, the airports and executives have to lower their expectations for a change. Nothing is set in stone if your leaders choose to believe the company then you need new leaders.