They offer what seems a compelling rationale: Multiple airline bankruptcies could leave a huge dent in the already fragile economy.

It was the first airline bankruptcy in Lithuania.

The economic structure of the airline industry may contribute to airline bankruptcies as well.

Mr. Steenland, who is a lawyer, had roles in several airline bankruptcies over the last 15 years.

"The stigma of an airline bankruptcy has, for all intents and purposes, lost its negativity over the years."

But in an era of airline bankruptcies, it is not clear who would pay, or how.

Under the terms on the airline bankruptcy the training academy was permitted to remain open.

According to a recent survey, the number of airline bankruptcies in the European Union between 2000 and 2008 rose to 79.

Indeed, at present, the only passengers covered by European legislation in the event of airline bankruptcy are those who book a package holiday.

That level of reimbursement is higher than in most previous airline bankruptcies.