mika10021
Posts: 120
Joined: Tue Jul 13, 2004 9:28 am

If Airline Goes Bust What Happens To The Miles?

Wed Aug 04, 2004 12:38 pm

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
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: If Airline Goes Bust What Happens To The Miles?

Wed Aug 04, 2004 12:48 pm

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!!!!
 
flykal
Posts: 423
Joined: Thu Sep 25, 2003 12:20 pm

RE: If Airline Goes Bust What Happens To The Miles

Wed Aug 04, 2004 12:49 pm

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
 
aussie747
Posts: 1005
Joined: Thu Aug 14, 2003 11:15 pm

RE: If Airline Goes Bust What Happens To The Miles?

Wed Aug 04, 2004 1:01 pm

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.

 
PER744
Posts: 397
Joined: Sun Mar 09, 2003 11:38 am

RE: If Airline Goes Bust What Happens To The Miles?

Wed Aug 04, 2004 1:20 pm

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).
 
atrude777
Posts: 4258
Joined: Wed Aug 13, 2003 11:23 pm

RE: If Airline Goes Bust What Happens To The Miles

Wed Aug 04, 2004 1:24 pm

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!
 
NDSchu777
Posts: 389
Joined: Sat Oct 06, 2001 3:29 am

RE: If Airline Goes Bust What Happens To The Miles?

Wed Aug 04, 2004 2:08 pm

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
 
malb777
Posts: 443
Joined: Thu Jul 08, 2004 5:53 pm

RE: If Airline Goes Bust What Happens To The Miles?

Wed Aug 04, 2004 3:50 pm

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
 
travellin'man
Posts: 469
Joined: Sun May 13, 2001 1:55 am

RE: If Airline Goes Bust What Happens To The Miles?

Thu Aug 05, 2004 4:19 am

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.
 
AEROFAN
Posts: 1406
Joined: Wed Aug 04, 2004 9:47 am

RE: If Airline Goes Bust What Happens To The Miles?

Thu Aug 05, 2004 4:27 am

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 avatar
EA CO AS
Posts: 13435
Joined: Wed Nov 14, 2001 8:54 am

RE: If Airline Goes Bust What Happens To The Miles?

Thu Aug 05, 2004 4:38 am

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

Comments made here are my own and are not intended to represent the official position of Alaska Air Group