I think you've been badly misinformed. First of all, the government never ran the airlines. They were always private businesses.
Direct subsidies to airlines were never part of the pre-deregulation system, nor were bailouts. Instead, fares were set artificially high by regulators so that airlines were guaranteed to make money even while flying relatively few passengers. The burden of that regulatory system was borne by the passengers, not the taxpayers.
On the other hand, airlines have always benefited from massive indirect subsidies, and they continue to do so today. All of the airports are built with taxpayer money. The FAA is run with taxpayer money. These are huge, expensive subsidies that we provide to the airlines (presumably because we as a people believe it is important to have air transportation). It's also the case that various governments now subsidize flights to small towns which would otherwise be unprofitable for the airlines to serve. In the pre-deregulation days, the government forced the airlines to fly those unprofitable routes, but set fares on the profitable routes high enough to cover the cost of going to the smaller towns. So what was once subsidized by the business traveler is now subsidized by the government. So in that sense, you have it completely bass-ackwards.
barfo