Many firms are facing financial difficulty as a result of COVID-19. However, we have not (yet) seen the predicted increase in merger activity or bankruptcies in some of the sectors most affected by the pandemic, including aviation. This may be, in part, a result of the substantial state support that has been provided to a number of companies in the sector. This article considers whether it is preferable to provide state aid to companies in order to allow them to continue operating, or should these ‘failing’ or ‘flailing’ firms be allowed to be acquired by others. It further considers whether there could be more alignment between these tools.