I am a proprietor of a massively failing airline over in JA8 right now and doing a few experiments with the death spiral to see how possible it is to right the ship once the toilet starts swirling, and what I've come up with has been the obvious - it is near impossible to shrink an airline to profitability for a chance at recovery even if there's a distinct chance that one can recover, thus, I propose the following ONE TIME option for reorganization (akin to Chapter 13 bankruptcy). This would be available to airlines who no longer have the cash available to pay for heavy checks (negative cash), CI is declining and are otherwise identified as being doomed by the system.
Upon selecting the reorganization option, it would make it possible for the airline to shrink to profitability (if in fact, it is possible). It would require/allow the following things to happen -
1. All bases other than HQ will be closed.
2. All leased planes that are not currently scheduled on routes will be returned to the lessor with no penalty (player would need to unscheduled HQ planes that are no longer wanted prior to pressing the button)
3. Staff will be sacked to the 100% level
4. CI will get dropped to -100
5. (maybe) A provisional allowance to operate in the red and have maintenance performed and all recurring bills paid (maint/marketing) for 3-6 game months to allow the airline to see if operations are possible at the shrunken size.
If a program like this was available, my JA8 airline could have been saved - I did everything on the list above except plane returns but now my revenue is lower than my lease bill, so there's no hope at this point. If I could have done a controlled shrink, then I would have positive cash today.