I think most people are of the opinion that nothing would happen to the pilots in bankruptcy. AA is still has a viable business plan. Still generates cash flow and has lots of assets (yes lots tied to debt). The pilots are not overstaffed or over paid compared to the market. Just has a debt problem and incompetent management . Chapter 11 helps relieve the debt problem. Not liquidate or part out. At worst they completely dump the pension on the PBGC, but that affects less than half the pilot group. Maybe a judge forces some culling in management bloat.

Chapter 7 is on no one’s mind I know, even with a recession.