Which BTW under most proposed versions of the Carbon tax is nothing more than a political tool, not a tool to properly account for externalities
Governments do not have a track record for being trust worthily enough to be placed in charge of controlling Externalities, it would inevitably be used to usurp power, and liberty from the people, while unjustly enriching their political allies.
This happens every day, in every government. As the saying goes "Government: if you think you have problems wait until you see our solutions."
What are they? Pigouvian taxes like carbon taxes are near universally endorsed by economists as a market oriented method of improving outcomes.
(Flights barely break even at all, and that's even with the absurd level of subsidies airlines get today)
I prefer the government to stay out of it completely. I prefer the government stay out of everything...
In bankruptcy, assets would be sold off (the planes wouldn't be crushed). Businesses restructured and life would go on. It's extremely unlikely no one would be willing to take air travel, even at higher prices than current (I like flying NYC/SF at $150/flight, but I would do it at $600/flight too).
Further if that is your "dream" to impose prohibitive taxation on the population I would question your ethical foundation as well
Edit: for the record since someone below is using a straw-man to claim I support subsidies, I dont. I prefer the government stay out it completely, neither taxing nor subsidizing (nor bailing out) anything, or any industry. I am not Pro or Anti Rail, nor I am Pro or Anti Air Travel. I am Anti-Government intervention...