Who do you think will pay for all of the debt the suppliers are screwed out of? Put the airline suppliers out of business, that should help the industry.
This a tough one, but it would seem that American Airlines is going to offer it''s suppliers with stock options to compensate for agreeable contracts.
Who will buy all of the airline assets put up for sale by the court? No sale of assets to pay creditors = concessions from employees to get costs down to profitability.
If the industry falls to the levels you are suggesting, then it would seem that the only entity able to pick up the tab would be the government. But that is reregulation. We would not want to go there, would we?
The court will do whatever it takes to get the airline to profitability. Park airplanes? go ahead and screw the lease holders and lay off all of the employees required for those routes.
If airplanes are parked, then the over capacity issue goes away. This is why they are leases. These leases are contracts between the airline and the leaser. Labor should not beheld accountable for a bad business plan or the inability for a management team to implement it''s plan. Prior to 1983 at American and most likely prior to deregulation in 1978, there were layoffs as the economy of the airline dictated. Today the airlines attempt to keep a broken route system and the industrial unions attempt to man it. Yes some adjustment may be required, but not at the behest of labor alone.