The equivalent in the UK is "administration" when essentially, unless you can find a buyer (or a football club), there is no second chance. Your credit rating becomes dire and its virtually impossible to borrow money - its an 'insolvency event'. I use a football club example there - they've essentially been allowed to go into administration, clear the debts, start afresh, overspend and accumulate even more debt which they can't afford and the vicious cycle starts again. Everyone suffers apart from the 'brand' which doesn't change.
Connectivity is important, but so is profitability. There are two many pointless/unprofitable routes operated by US majors. 1000+ aircraft is an obscene number of airplanes you have to pay for. And as a result, the whole product suffers.