I'm guessing that you're not very familiar with the history of the airline industry.
The problem is that there are too many competitors, someone fails, go into chapter 11, with the competitive advantages they get from chapter 11 they become healthy, there remain too many competitors and another one fails. At this point most of the major airlines have been in and out of chapter 11 multiple times, and the airline industry still has structural problems of too many airlines. But with every round life has gotten worse for the employees. To such an extent that pilot has gone from a good job to a piece of crap job that people only stay in because they have already sunk the cost of their training and love to fly.
If chapter 11 wasn't there then this cycle would never have caught on. But the artificial boost for companies that are ready to go away is artificially distorting the market to everyone's disadvantage. And it has stayed distorted for a period of decades.
The problem is that there are too many competitors, someone fails, go into chapter 11, with the competitive advantages they get from chapter 11 they become healthy, there remain too many competitors and another one fails. At this point most of the major airlines have been in and out of chapter 11 multiple times, and the airline industry still has structural problems of too many airlines. But with every round life has gotten worse for the employees. To such an extent that pilot has gone from a good job to a piece of crap job that people only stay in because they have already sunk the cost of their training and love to fly.
If chapter 11 wasn't there then this cycle would never have caught on. But the artificial boost for companies that are ready to go away is artificially distorting the market to everyone's disadvantage. And it has stayed distorted for a period of decades.