Bankruptcy can include reorganization
Some jurisdictions provide court-supervised procedures that pause creditor action while the airline negotiates debt, leases and new financing.
Liquidation aims to wind the company down
The liquidator sells assets, collects receivables and distributes available proceeds according to creditor priority rather than trying to preserve the airline as a going concern.
Flights may continue during restructuring
A reorganizing airline can sell tickets and operate normally if it has enough liquidity and court approval for ongoing business.
Flights usually stop in liquidation
Once the operating business is closed, passengers need alternative travel and must pursue refunds or claims through available protections.
Aircraft treatment depends on ownership
Lessors can seek the return of leased aircraft, while owned aircraft may be sold as part of the estate.
Local law controls the terminology
The exact meaning of bankruptcy, administration, examinership, receivership or liquidation varies by country, so passengers and creditors should rely on the specific legal process announced.
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