Originally Posted by
tdracer
You need to remember that - at least in the US - there are different types of bankruptcy. Chapter 8 means the business model is no longer viable and you're out of business - chapter 11 means you're business is still viable, but you need some 'help' with the debt burden to remain viable - under chapter 11 the business will maintain more or less normal operations. Both PanAm and TWA went the chapter 11 route and were then taken over - they never ceased operations.
The story is slightly complicated in the case of Pan Am because when they were taken over, Delta didn't want their east coast shuttle service - it continued on for a while under the Pan Am moniker but eventually collapsed under it's own weight and went the Chapter 8 route.
Isn't the definition of Chapter 11 more along the lines of "the airline is profitable if it's debts are written off"?