Airline bankruptcies

May 13th, 2002, 05:59 AM
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Airline bankruptcies

With the latest news from USAir, I'm wondering if anyone who has experience with past airline bankruptcies can shed some light on what happens in these situations.

I assume that if I'm holding a non-refundable ticket for an airline that files Chapter 11, and continues to operate, I'll be OK (although schedules may be reduced/changed).

What happens if the airline ceases operations? Can anyone recall what has occurred in this situation in the past?

I'm planning a trip during a peak period that requires booking well in advance, and USAir has the cheapest fares. It seems to me that if an airline announces that it "may" have to file Chapter 11, it becomes a self-fulfilling prophecy, because consumers will be reluctant to purchase tickets on that airline.

Any insights from past experiences?

May 13th, 2002, 07:14 AM
A professional Agent
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Other airlines generally accept their tickets. Some do charge a fee or make you go standby. Of course, it is on a first come first served basis.
I was in Denver when Eastern went on strike and United flew me home with no additional fee.
Several airlines have operated in Chapter 11 for years including Continental, America West, TWA
May 13th, 2002, 09:56 AM
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Other sirlines may not accept your ticket if it is a 'web fare'. If you purchased with a cc you may be able to 'chargeback' for no service.
May 13th, 2002, 06:16 PM
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As a former employee of an airline that recently went through bankruptsy, I can tell you that you will be fine if you are holding tickets. If USAir does in fact file Chapter 11, you were ticketed under their rules (240.0 or 120.20) that they can have your ticket endorsed over to another carrier if they no longer service the destination. If they do, they will just roll you over on another flight if yours is to cancel. In the unlikely event that they completely close your doors, you will be accomidated on a class basis on another carrier.

As you probably already know, there are many different incentories in coach class that allow for the different prices in tickets. Say that you are holding a "V" class ticket on USAirways. American could have an agreement to take passengers if there is a similar inventory available.

I think that it is an absolute shame to see USAir in trouble. They are one of the few carriers that have maintained a level of professionalism and high customer service over the years. They have my prayers.
May 14th, 2002, 08:15 PM
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frmairliner, i bought a ticket for US Airways through Orbitz. I'm traveling memorial day weekend so does the same rules apply if they go belly up during the upcoming holiday? otherwise, i'll be stuck in ny.
thank you for the information
May 15th, 2002, 03:47 AM
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Essentially, the question is, will I get paid. Other airlines are not required to honor the a bankrupts ticket. However, the good news is that they will probably hold out at least until June 28 which is the deadline for the Federal loan guarantee. If they don't get a guarantee, then it's bankruptcy. Of course, you can request a refund from your credit card company for non performance of services.
May 15th, 2002, 09:06 AM
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Could anyone tell me what might happen to my USAir 40,000 frequent miles?
Thank you.
May 15th, 2002, 10:11 AM
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shyone - I really think that Chapter 11 is coming soon, which really is unfortunate. The good thing about Ch11 is that is does not mean the end of the airline. They will not be closing their doors tomorrow. They may have to cut back a bit on destinations and/or eliminate unprofitable markets. Are you in and going to a big USAir market? If you are, I'd say that you'll be ok. Always the best advise is to check with you carrier 24 hours prior to departure to see if there have been any changes. This applies not only to carriers on shaky ground financially, but to all. Schedule changes happen all the time, some more frequently (American) than others.

If they do file, call USAir immediately so you can get everything straightened out before your day of departure.
May 15th, 2002, 12:35 PM
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In the event of a bankruptcy, the airline will either be purchased in whole or in part by another airline or the airline will be liquidated.

In the event of a liquidation, your miles will probably be worthless.

In the event of a purchase, the buyer will probably honor the miles to maintain goodwill. In the recent purchase of TWA by AA, the TWA FF program was merged into AA's.

An idea is to try to get a award ticket on one of US's partner airlines.
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