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If Airline Goes Bust What Happens To The Miles?  
User currently offlineMika10021 From Greece, joined Jul 2004, 122 posts, RR: 0
Posted (9 years 11 months 3 weeks 4 days 13 hours ago) and read 4494 times:

I'm sorry if this has been posted before but what happens if the company goes under and I still have miles?The reason I am asking is because I have miles with OA and AZ and they might not make it finacially.
Thanks

10 replies: All unread, jump to last
 
User currently offlineSsides From United States of America, joined Feb 2001, 4059 posts, RR: 21
Reply 1, posted (9 years 11 months 3 weeks 4 days 12 hours ago) and read 4469 times:

For the most part, you're SOL.

Airlines have the right to alter or terminate mileage programs at their will. The only thing they have to take into account is how miffed passengers will be if they were to dramatically alter the way miles are earned or redeemed.

If the carrier goes under, its miles are technically worthless. However, I believe that when this has happened in the past, some airlines -- in an attempt to seize the dead airline's customer base -- have honored the defunct airlines miles. Can anyone confirm?



"Lose" is not spelled with two o's!!!!
User currently offlineFlykal From Australia, joined Sep 2003, 442 posts, RR: 3
Reply 2, posted (9 years 11 months 3 weeks 4 days 12 hours ago) and read 4471 times:

Generally speaking (and from my experience with AN), if an airline goes bust, you can kiss goodbye to all your hard earned miles.

Even being part of the "Star Alliance" meant stuff all to most AN frequent flyer members.

heers!



One doesn't discover new lands without consenting to lose sight of the shore for a very long time
User currently offlineAussie747 From Australia, joined Aug 2003, 1163 posts, RR: 0
Reply 3, posted (9 years 11 months 3 weeks 4 days 12 hours ago) and read 4443 times:

Frequent flyer are at the bottom of the foodchain or least important creditors when it comes to frequent flyers. Unless the airline is taken over along with the frequent flyers and their miles (which is highly unlikely) it is just like Flykal suggested you can kiss all your miles goodbye.



User currently offlinePER744 From Australia, joined Mar 2003, 405 posts, RR: 2
Reply 4, posted (9 years 11 months 3 weeks 4 days 12 hours ago) and read 4432 times:

With AN, the frequent flyers were classed as unsecured creditors, and given equal priority as the rest of the unsecured creditors (and in the end got pretty much nothing).

User currently offlineAtrude777 From United States of America, joined Aug 2003, 5692 posts, RR: 52
Reply 5, posted (9 years 11 months 3 weeks 4 days 12 hours ago) and read 4419 times:

AA and TWA had that happened.

Even tho TWA was bought by AA and not bankrupt so to speak, AA still collected TWA's Miles and turned them into AADVANTAGE miles.

Alex



Good things come to those who wait, better things come to those who go AFTER it!
User currently offlineNDSchu777 From United States of America, joined Oct 2001, 419 posts, RR: 3
Reply 6, posted (9 years 11 months 3 weeks 4 days 11 hours ago) and read 4397 times:

I've been wondering about the same thing. I've got a ton of miles on UA right now so I've got a a vested interest in them surviving. I'm trying to optomistic and save my miles for a time when I'll need them, but with the so-so financial reports, I wonder in the back of my mind if I should just cash the miles in for free trips while I know United is still around....

~Nick


User currently offlineMalb777 From Australia, joined Jul 2004, 462 posts, RR: 1
Reply 7, posted (9 years 11 months 3 weeks 4 days 9 hours ago) and read 4354 times:

When Ansett folded I had 250.000 miles in credit lost the lot Pissed I was just about to book a round the world ticket with them. So now I have the same with QF and I will be using them in March next year just hope they dont go bust on me as well


thank god i was not born a bird. this type of flying is much better
User currently offlineTravellin'man From United States of America, joined May 2001, 530 posts, RR: 0
Reply 8, posted (9 years 11 months 3 weeks 3 days 21 hours ago) and read 4270 times:

What if you book a ticket using ff miles, and then the airline goes bust? What if it's booked on an alliance carrier? For example, let's say I book UA miles to fly on Thai, then UA (hope not) goes under, will my ticket still be honored, or will it be cancelled?

As a sub-twist, if I am at my destination, and the airline folds, do I lose the remainder fo my ticket, and am left stranded?



It is not enough to be rude; one must also be incorrect.
User currently offlineAeroFan From United States of America, joined Aug 2004, 1517 posts, RR: 2
Reply 9, posted (9 years 11 months 3 weeks 3 days 21 hours ago) and read 4261 times:

Ssides"For the most part, you're SOL.

Airlines have the right to alter or terminate mileage programs at their will. The only thing they have to take into account is how miffed passengers will be if they were to dramatically alter the way miles are earned or redeemed.

If the carrier goes under, its miles are technically worthless. However, I believe that when this has happened in the past, some airlines -- in an attempt to seize the dead airline's customer base -- have honored the defunct airlines miles. Can anyone confirm? "

You are correct. When PanAm went belly up AA honored the miles that I had accumulated on PanAm when they purchased the routes. It is debatable though whether this was the norm or a DOT stipulation for allowing the purchase


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13508 posts, RR: 62
Reply 10, posted (9 years 11 months 3 weeks 3 days 21 hours ago) and read 4239 times:
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Even tho TWA was bought by AA and not bankrupt so to speak, AA still collected TWA's Miles and turned them into AADVANTAGE miles.

Not exactly, but close.

TW filed bankruptcy and AA substantially all of their assets, save for a few routes and employee groups overseas that they didn't want or need. While AA was under no obligation to honor or take on TW's FFB Mileage program liability, they CHOSE to convert those to AAdvantage miles in an attempt to foster goodwill with TW's former customers and persuade them to become loyal AA customers in the future.




"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
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