Apr
8
According to the MSNBC.com story Airline’s gone bust—what happens to my miles? by Tim Paradis…
“April 8, 2008 - Q: What can I do if I have frequent flier miles on an airline that ceases operation?
A: With the recent bankruptcy filings from ATA Airlines, Aloha Airlines and Skybus Airlines some travelers might be wondering what would happen if a carrier they rely on goes under. While analysts don’t seem to think major airlines are likely to falter, seeing three bankruptcies in as many weeks might cause some travelers to become concerned for the miles they’ve earned.
The short answer is that when airlines halt operations rather than just reorganize, the miles would likely disappear as quickly as a jet’s vapor trail. But that doesn’t necessarily mean starting over for all travelers.
In rare cases other airlines will step in to honor miles, though that’s less likely to occur in bankruptcies of smaller airlines focused on vacationers, said Terry Trippler at TripplerTravel.com in Minneapolis.
Travelers who have accrued a large number of miles can essentially shop themselves around to airlines.
“You have to prove to this carrier that you are going to be a good, solid loyal customer,” she said.
While business travelers account for about 1 in 5 passengers, their business brings in roughly half of many airlines’ revenue, Libert said. So business customers are going to be taken care of first.
“Any company — whether it’s a retail store or a restaurant or an airline — they’re going to focus on their best customer,” she said.
But for those travelers who don’t fly often enough to attract an airline’s attention, there is often little they can do to hang onto their miles when a carrier shuts down.
“I believe that your miles have gone to Never-Never Land and are therefore probably worthless,” said Tom Parsons, chief executive of bestfares.com. “That’s really what happened with other airlines in the past too.”
