Re-nationalisation MUST be an option.
How on gods earth are airlines gonna get out of this deep hole? EU competition laws? They surely cannot apply "no matter what".
Look at Railtrack for example. When an industry is in dire straits, government intervention needs to take place. Otherwise, when the industry comes out of the hole, there will be no airlines left, hundreds of disused slots, thousands of frustrated passengers and just a few no frills 737's - which is fine if you want to go to Nice or Malaga!
Seriously, we cannot leave the industry to the perils of the free market - a pure market economy just doesnt work in reality.
Having just read about Canada 3000, I am almost in disbelief at the whole state of things!