My sense is that a proper rebuild would lose them significant market share for a long time. I’m not sure the government will permit that. They’re a significant part of the economy and nobody likes being in office when it contracts.
Almost certainly help. American capital markets give mid-sized companies scale. And they’re already decentralised their operations; they’re already paying the cost of competition. There are just no benefits yet.
Look back at the halcyon days of civil jet aviation; America dominated in large part due to its internal competition.
This is the same US government that gave Boeing the 300% foreign aircraft tariff in an attempt to kill the Bombardier CS100. Which they then sold to Airbus (who have a manufacturing presence in the US, so no tariff) so the jet could live.
On the condition of bankruptcy, sure. (This is how we did the auto bailouts.)
In reality, we probably need a break-up (and recombination of spun-out factories). Keep the military contractor a monolith. But reïnject competition into our civil aviation sector.