"This agreement allows the company to reorganize under Chapter 11 and emerge as a viable, competitive airline against both low-cost carriers and other network carriers."

The least competitive airlines have been particularly effective in lobbying the European Union in Brussels to retain extra barriers against outsiders.

With Varig, Mr. Silva has a similar challenge - to build a competitive airline.

The economist added: "I'm definitely against the monopoly of Aeroflot, and for the establishment of competitive airlines.

T.W.A.'s owner, Carl C. Icahn, said that the filing "will result in a stronger, more competitive airline."

Michael O'Leary pledged that he would keep the two airlines separate and competitive to one another.

As a result, VASP - once a proud, competitive airline - had its domestic market share reduced to 10%.

As the healthiest and most competitive domestic airline, Southwest's pricing is influential.

But it would bleed Eastern to the point that no one would dare try to build a competitive airline from the remains.

Without the cuts, United said it would be unable to maintain adequate cash, meet the terms of its bankruptcy financing, or become a "competitive and sustainable" airline.