I hope that it does NOT happen, as I have friends who work at Jet2.
But many carriers have gone to the wall in similar circumstances :-
Dan-Air, Air Europe, Laker and Courtline to name but four.
If the bums are not on seats then its the accountants who will call the shots and despite a top class workforce they see the bottom line and not the people behind those figures.
As for lowering T&C's there is much rubbish talked on these forums.
Its time people realised that the RYR way (Paid when you fly) is what will see them through the recession when others fail.
I have seen the industry bounce up and down for the last 30+ years and I am happy to say that it was not RYR who have caused the drop in T&C's they have just taken advantage of the situation.
It is the accountants who have cut costs and conditions to make more of the big buck for the share holders, and they have used the LCC excuse to justify their decisions.
The crew costs were easy targets rather than dealing with high costs associated with fuel hungry equipment, increasing airport and regulatory charges.
This winter will be hard, lets hope it wont see too may casualties.