bankruptcies since 1984 in order to estimate the effect of bankruptcy on air service, controlling for demand fluctuations and … find substantial effects of bankruptcy on flights offered or destinations served at large and small airports, but do find … an impact at medium sized airports. We estimate, however, that service changes due to bankruptcy are not large in …

that airlines in financial distress, particularly those operating under Chapter 11 bankruptcy protection, reduce prices to … and their rivals. The data suggest that an airline's prices typically decline somewhat before it files for bankruptcy …