The painfully high price of oil has really limited the bailout options for airlines on the brink of bankruptcy, says Steve Stapleton, a bankruptcy and aviation industry attorney at Cowles & Thompson. "Airlines have already taken extreme measures and cut their expenses to the bone, but they're still losing money," says Stapleton,

who authored a chapter on aviation bankruptcy trends for an upcoming book. "Chapter 11 bankruptcy, however, may not be the perceived panacea it once was. The domestic credit crisis, the escalating price of oil and the weakening dollar have created the perfect storm for the industry, requiring a wholesale reevaluation of its business model." Stapleton predicts that bankruptcy liquidation rather than reorganization will become more attractive as oil prices continue to soar. In the meantime, passenger headaches from increasing fees and fares, reduced services and discontinued routes will continue. To interview Mr. Stapleton about aviation bankruptcy trends, contact Robert Tharp at 800-559-4534 or robert@androvett.com.