I've been saying for a long time the competition issue makes no sense to allow this to happen.
If anything, I agree the gov should hook them up w/WS rather than AC. At this point the break fee might be worth it and then pick up the pieces in liquidation.
After corona subsides AC will most certainly not need nearly as much capacity for a while, and can dump a bunch of the old 763s and 190s they've wanted to get rid of. No worries about the 7M8 delays now!