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air canada and aeroplan points question??

air canada and aeroplan points question??

Apr 5th, 2004, 05:43 AM
  #1  
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Join Date: Feb 2003
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air canada and aeroplan points question??

Have booked a trip to Spain in late Sept. using my aeroplan points. Any thoughts on what might happen with aeroplan if Air Canada files for bankruptcy?
canuckuphereathome is offline  
Apr 5th, 2004, 07:05 AM
  #2  
 
Join Date: Jan 2003
Posts: 615
Be nervous. Be very nervous. Frankly I'm thinking of double booking my booked flights with AC on another airline after April 30 just to be safe. I might wait a few days to test the wind but I can't see how that would hurt because, (as with previous cases), if the collapse comes it will come fast and without notice.

i still believe in my heart that a country like Canada must have a flag carrier and so there may be a switcheroo like with Swissair to Air Swiss a year or so ago but even that could leave reward and even paid reservations in limbo.
GaryA is offline  
Apr 5th, 2004, 07:18 AM
  #3  
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Gulp!! Thanks Gary..methinks if I can't go to Spain on points, I won't go at all...just too expensive. And with everything going on recently in Spain, I won't be overly disappointed! Having said that, I am now in the process of booking hotels etc. in Spain. Wondering your thoughts on end of Sept. situation?
Do you think we'll have a good idea this summer what will happen? Just don't want to get caught over there and no way to get back...I know it's all speculation right now but any thoughts? Thx.
canuckuphereathome is offline  
Apr 5th, 2004, 07:57 AM
  #4  
 
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I was pretty optimistic until reading more about it this weekend. I think for those why bought tickets with money, you should be fine - either in the form of a refund (especially if you use credit card), or your ticket should be honored by other airlines. [AC still has a lot of borrowed cash.]

However, aeroplan points may be useless by then. Like the Swiss scenario explained by GaryA. A brand new company takes over, and you aren't owed anything.

In fact, a lot of heavy AC users have been burning through all their aeroplan points in the last several months. But a lot may happen between now and Sept (and between now and 4/15). If you won't go at all if you can't use points, then don't book hotels in Spain with non-refundable rates. That way, you won't lose any more.
rkkwan is offline  
Apr 5th, 2004, 12:22 PM
  #5  
 
Join Date: Jun 2003
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I'm nervous about this too. But I bought my Air Canada tickets via the BMI web site. Perhaps that would make a difference?
WillTravel is offline  
Apr 5th, 2004, 02:21 PM
  #6  
 
Join Date: Jun 2003
Posts: 12,188
I found this on the FlyBMI.com web site:
http://www.flybmi.com/bmi/en-gb/sect...ils.aspx?p=138

codeshare flights
When a flight is sold to you under a codeshare or marketing arrangement by us, we will always inform you of the actual operator of the flight. On occasions, the services offered may be different to that provided by bmi as not all airlines will be signatory to the APSC. However, as the marketing carrier, your contract for travel remains with us should you have any further issues.
=======
This provides me with some measure of reassurance. I also sent an email to their customer relations department.
WillTravel is offline  
Apr 5th, 2004, 09:40 PM
  #7  
 
Join Date: Feb 2003
Posts: 102
I'm not quite as pessimistic as the other posts. Air Canada is not the same as Canada 3000 (which went belly up a couple of years ago without notice, stranding people), but is Canadas national carrier. The economic consequences of its failure would be catastrophic, and I dont believe the federal government would let it just collapse, especially in view of the fact it is a Quebec based company (Canadian politics at its finest). I'm sure there would be a bail out of some sort.
Also,once you get the ticket, aeroplan seats are just like any other paid seat (you have,in fact, actually paid for the seats with the money you spent getting the points).I think you would be treated like any other passenger, and there would be attempts to accomadate you.
Of course, I am not an expert, and this is just my opinion.
By the way, Air Canada filed for bankruptcy protection several months ago. It is currently trying to restructure. There was a deal pending with a major oriental inverstor, which will probably fall through due to unions being unwilling to compromise on their pension plans. The latest court order recomended the airline be given an extension to look for other investors, and apparently there are several potential deals in the works.
So dont give up on your vacation plans just yet.
jimmoi is offline  
Apr 5th, 2004, 09:52 PM
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April 15 is the date the judge will decide whether to extend bankruptcy protection for Air Canada.
WillTravel is offline  
Apr 5th, 2004, 10:46 PM
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The proposed infusion by Victor Li's company is basically dead. So, the judge will just have to extend the April 15 date, so that AC can look for other investors. The situation is basically this - Any new investors will probably lay out an even more strigent demand than Li did, because AC's financial situation has actually gone worse since his proposal. With the unions so firm, it's hard to find any credible investors to buy into AC.

But for the casual traveller, two things are on their side. One is that AC still has a lot of cash on hand, plus a pretty large credit line from the banks. So, there's really no immediate shutdown threat. Second, there is going to be election this year, and the ruling Liberals certainly won't want to have a liquidated airline.

Having said that, sometimes government do let their flagship airlines go under. Sabena and Swissair both have very long tradition, and they've disappeared. Ansett Australia also liquidated - even though it's not the largest airline of Australia, it IS a major airline with extensive Australian and Asian network. So, these things do happen.

Like I said in a thread on the airline forum, I think a passenger booked on AC may want to consider getting a paper ticket issued, even if that may costs a few dollars. That way, if AC does fold later this year, you can more easily get a different airline to honor your ticket and get you to your destination. And if you still have lots of Aeroplan miles, I'll start thinking about using them.
rkkwan is offline  
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