With most airlines requiring government assistance by the end of this crisis, perhaps nationalising the lot and having one large state airline might be the cheapest way out of the crisis for the industry, with the least pain for employees.
Many European countries already have one airline that is overarching dominant in their market place (Germany and France to name two). The UK is somewhat different, with the London market being quite different to that in the rest of the nation at present. To do as I have proposed would essentially take the industry back to the 1960s, but may not be too far fetched a solution if things get really bad.