Frequent Flyer Miles in Bankrupcy

Old Oct 20th, 2002, 02:40 PM
  #1  
Mary Susan
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Frequent Flyer Miles in Bankrupcy

Are there any airline gurus or business types out there (as opposed to travelers like me who really don't know this level of information in any detail beyone our opinions) who might know what would happen to frequent flyer miles if United goes bankrupt? I know that they will almost assuredly survive as an airline, and that bankrupcy gives them the opportunity to re-negotiate union contracts and the like, but does it also give them the opportunity to get all those miles/all that liability off the books? Should we be worried?

Thanks.
 
Old Oct 20th, 2002, 02:51 PM
  #2  
AA
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Mary,
If and only if UA goes out of business, then yes, FFs will loose their miles. Not too many 'regular' flyers know, but there is insurance available for your miles in cases like this. Again, UA would have to go under. In my opinion that's not going to happen any time soon. If they go into 'protection' the miles would not be effected.
Hope that answers your question.
 
Old Oct 20th, 2002, 03:35 PM
  #3  
gb
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What insurance? And what if you have tickets on FF miles for next year. Will they be safge if the airline survives?
 
Old Oct 20th, 2002, 03:56 PM
  #4  
y
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TWA went through a bankruptcy and a buy-out by American Airlines and I didn't lose miles either time.
 
Old Oct 20th, 2002, 04:03 PM
  #5  
Jim Rosenberg
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I agree that United miles are probably not going to be imperiled, even if the airline goes under bankruptcy protection. If you want to learn more about the insurance, here is a website:

http://www.awardguard.com/

I offer this only as a matter of information and not as a recommendation. Personally, I encourage people to USE miles from time to time, vs. simply hoarding them. You can lower any potential loss liability that you perceive, while enjoying some of what you've earned.
 
Old Oct 20th, 2002, 04:38 PM
  #6  
AA
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Thanks Jim.
I agree with Jim, unless you have millions of miles, insurance is not for you. The miles are there to be used, although the airlines do love hoarders.
I'm fairly new to the game, but I know some people that have anywhere between 1-5 million miles in their accounts. Fortunately for the airlines, they are such workaholics that even when they take that one vacation a year in first class, they only use about 150000 per ticket. I think that seceretely they just like to check their account and see all these miles on the computer screen. Me, as soon as I get enough for a first class to say, Australia, Hong Kong, or if I want to go back to Europe to see some good friends, I withdraw the required miles. I'm not sure about other airlines, but the good thing about AA is that any and all miles you earn, it counts toward a lifetime elite status, even if you use them along the way. For 1 M you get lifetime gold, for 2 M lifetime Platinum.
 
Old Oct 20th, 2002, 06:17 PM
  #7  
Rex
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Didn't lose any with TWA, and likewise with the old Eastern Airlines which merged plans with Continental's One Pass before they quit flying. It was essentially seamless, with no loss of miles.

Best wishes,

Rex
 
Old Oct 21st, 2002, 10:04 AM
  #8  
ttt
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topping
 
Old Oct 21st, 2002, 10:46 AM
  #9  
Mary Susan
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Thanks to all. We use our miles quite regularly, still would hate to lose any. Sounds like it is not a worry.
 
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