The airline experts expect US Air to go bankrupt this year becasue of the recent sick-out and possibility that the labor unions will not vote for wage concessions. I want to take a trip to New Zealand in April with frequent flier miles. US Air has a relationship with Qantas. I would like to know if I redeem miles for New Zealand with Qantas and US Air goes bankrupt will the Qantas honor the ticket.

Thanks

FYI - USAir also has a relationship with Air New Zealand. I have a FF ticket with USAir to LAX, then with ANZ to AKL for next March. I just called ANZ, and they said that they will honor the ticket in any case. WHEW!!!

And another FYI: US Airways IS bankrupt. They're in Chapter 11 (restructuring their debt with their creditors). They may LIQUIDATE in mid-January if their financial situation doesn't improve. The informal "sickout" was probably demoralized hourly employees taking their sick hours during the holidays because it's the last firm benefit left to them and the writing's on the wall:

Even if US Airways survives, most of their current employees will probably lose their jobs as the existing union contracts are voided (in the current anti-union environment that's practically a certainty).

If USAirways liquidate, your Dividend Miles won't be worth anything anyways. So, why not just book the flights and hope for the best? [Unless you have better ways to spend those miles sooner.]

Has anyone any experience with points.com?
Is the membership fee worth it...What are the exhanges like? I have a flight booked for march w/ usair AND wonder if i should cancel it and just use my points through points.com?

US Air is a member of star alliance. Air Canada which is also a member of star alliance had a similar situation with bankruptcy last year. Many of us with aeroplan points prepared for that eventuality by 1) Booking flights using these points on Star Alliance carriers (www.staralliance.com) for travel sometime during the year...with the understanding that if Air Canada was to go under, we would take that trip (atleast the points didnt go waste and who minds a vacation?!) or if possible, reschedule the ticket for a later and more convinient date using the same airline.
2) Someone also mentioned that they opened an airmiles account with another star alliance carrier and were able to transfer the points. I find that suspect, but have no proof to doubt that theory/move.

If US air does go bankrupt, your ticket with the carrier is still valid. I would reccomend getting the itinerary ticketed asap. Air Canada as we all know managed to pull through so we didnt have to face that eventuality though we did take the trip!

If USAirway closes its doors, it's not certain the other carriers you've booked your FF awards have to honor those reservation. USAirways don't pay out to the other carriers for your ticket until flight time (or after).

However, those carriers, especially those in the Star Alliance may honor them as a goodwill. But nothing is "certain".

Remember, three major international carriers have shut their door in recent years - Sabena, Swissair and Ansett. In all those cases, people basically lose all their FF miles.

I went ahead and booked an international trip with Star Alliance instead of directly with USAirways, hoping that if USA liquidates Star Alliance will honor the reservation. No guarantees though.

Like I mentioned, ask them to send you a physical ticket for your trip...it may cost an extra $20 but worth it. This was the advice that the Aeroplan representative had given us during Air Canada's financial crisis.