With two of the nation's big carmakers having filed for bankruptcy reorganization, can airlines be next?
No - not yet.
A pack of major U.S. airlines went through Chapter 11 bankruptcies after the Sept. 11 terror attacks.
And that puts them in better shape, for now, to weather the economic downturn, experts say.
Earlier in this decade, Delta, United, Northwest, Hawaiian and US Airways Group all went through bankruptcy protection - twice for US Airways, in 2002 and 2004.
Top carriers used the court process to reduce debt, slash labor costs, and dump traditional pension plans.
Aloha and American Trans Air airlines sought bankruptcy restructuring, and ultimately went out of business.
American and Continental airlines averted bankruptcy but won wage and benefit concessions from union employees.
"Airlines have gone through this boom-and-bust cycle so many times in the past 30 years that they recognized what they had to do, and so have done it," said airline analyst Helane Becker with Jesup & Lamont.
Many issues automakers and airlines face are the same - pension and infrastructure costs, and retiree and health-care issues. But the magnitude of the cash outflow for auto companies was "far worse" than for airlines, said William Warlick, a credit analyst for Fitch Ratings.
Car sales are cut in half this year, and U.S. manufacturers contend with fierce competition from foreign carmakers, including Toyota and Honda.
"Arguably the demand and revenue shock on the auto side was even greater" than for airlines, Warlick said. Until now, the auto industry has not been through bankruptcy reorganization.
General Motors Corp. and Chrysler L.L.C. were saddled with high labor costs, massive debt and hefty retiree and health-care obligations when they filed for court protection from their creditors. Chrysler emerged from bankruptcy last week.
"The auto industry has been in this precarious place for a long time, looking at foreign competition and lower-cost domestic competition," said aviation consultant Robert Mann. "Airlines have essentially been through this."
U.S. airlines took aggressive steps last summer when crude oil peaked at $147 a barrel. They trimmed seat capacity by swapping bigger planes for smaller ones, reduced flight frequencies, and eliminated unprofitable routes.
Airlines also cut thousands of jobs, grounded aircraft, and canceled or delayed orders for new planes.
But the outlook for airlines is increasingly uncertain.
