"We're on vacation, we're going to Las Vegas," says National Airlines passenger Bill Blaser from Bellevue. Blaser and his wife are on a dual-city vacation -- first Las Vegas, then Los Angeles.

They're also on alert. They didn't' know until we told them that National Airlines, a small discount carrier based in Las Vegas, is in bankruptcy court.

"They said they've been established since May (in Seattle) and that they were in the black," says Blaser.

But Saturday, in a desperate move, National says it announced across the board pay cuts for every employee -- including management. One employee told us some workers are down to minimum wage.

"It's a mess," says Steve Danishek, a local travel analyst. He says National will likely go the way of Vanguard Air and other now defunct discount carriers.

"They're terminal," he said. "There is nothing in the National model that is going to give them long term success. There hasn't been." He says National made a mistake in trying to cash in on Seattle to Las Vegas business -- a market already served by three other carriers.

National Airlines admits it has had its share of financial headaches, they filed for Chapter 11 bankruptcy in December of 2000 but they say they're not ready to call it quits. In fact, they tell KOMO 4 News on a scale of 1-to-10, they're about at a '9+' with regard to saving the airline.

The airline is scrambling to find investors, and have until Friday to do it when they're due back in bankruptcy court. If they don't, the court could order them to stop flying.

"I don't feel great about it and it means I'd be out more money in my pocket," says Blaser as he and his wife gather their bags and rush to catch their flight.

In Seattle alone, a court order could mean at least 500 passengers stranded, 23 employees out of work, and National's 757's parked.

If you're flying with a carrier that's filed for Chapter 11, it's important to always pay with a credit card -- it's the only way to get your money back.

If a carrier goes belly-up, other carriers serving the same route are required to offer standby seating if they're available.