Understand it suggests the collapse of such an entity can severely damage the economy. If this airline goes bankrupt, it's too big to fail; the government will likely intervene.
Pro Tip 2/3
Government Role
Recognize that the term implies governmental or authoritative intervention is considered necessary. This bank is too big to fail; it's expected to receive a bailout.
Pro Tip 3/3
Interconnectedness
The term refers to organizations that have many dependent relationships with other entities. Our car factory is too big to fail; too many jobs and small businesses rely on it.