There is no danger that the airlines are about to disappear. //

But the carriers would almost certainly be able to continue paying their workers in bankruptcy. Once a public company enters Chapter 11, it rarely has difficulty raising new credit to cover operating costs, such as payroll. This was true even during the 2007-2009 financial crisis, when, despite the general credit crunch, private bankruptcy lending reached a new peak. Bankruptcy loans to companies in Chapter 11 are extremely safe, because the Bankruptcy Code gives the bankruptcy lender a high-priority claim on the assets. And potential bank lenders are now flush with cash, thanks to the Federal Reserve’s market interventions in recent weeks. //

Airlines aren’t running out of cash because their debts are coming due sooner than expected. They’re running out of cash because their revenues are much lower than expected. That’s a solvency problem, not a liquidity problem. Losses are inevitable. The only question is whether Washington leaves the losses with private investors or shifts them to taxpayers.