Why? Chapter 11 doesn't mean they stop making or selling planes. The biggest problem would be uncertainty, and that can be dealt with by announcing the intention of bailout immediately after the chapter 11 announcement.

For example GM went through chapter 11 in 2009. This helped their sales rather than hurt it.

Neither should Chapter 7 mean discontinuity for operations.

Pre-packing can be as easily applied to Ch. 7 as 12, if the insolvency court agrees.

But there's no management continuity or parachute in Chapter 7.

I nearly added union agreementd to the sacrifices of Ch. 7, but I'm really not sure if you can be so cavalier with well written agreements like union concessions made in order to enable management to work thru difficulties. At least instinctively I believe that creates a equitable interest.

Which makes me wonder if working out the union position in Chapter 7 wouldn't put the necessary fire under complacent managers.