If an airline goes bust or insolvent, what happens to frequent flyer miles and reward tickets?
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up vote
16
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I have a good number of frequent flyer miles with Jet airways, which is running into financial troubles. This is getting me a little worried and I have the following questions about it:
I have used some miles to book a ticket with its partner airlines [ANA], so I feel even if Jet airways goes bankrupt my travel should not be impacted. Is that correct?
If Jet airways goes bankrupt then will I loose all my miles? To be on the safe side, if I book a ticket using miles, will the airline refund me in cash if it goes bankrupt?
air-travel loyalty-programs jet-airways
edited Aug 12 at 6:11
dda
13.9k32548
asked Aug 12 at 5:36
Lokesh
1,170223
add a comment |Â
up vote
16
down vote
favorite
I have a good number of frequent flyer miles with Jet airways, which is running into financial troubles. This is getting me a little worried and I have the following questions about it:
I have used some miles to book a ticket with its partner airlines [ANA], so I feel even if Jet airways goes bankrupt my travel should not be impacted. Is that correct?
If Jet airways goes bankrupt then will I loose all my miles? To be on the safe side, if I book a ticket using miles, will the airline refund me in cash if it goes bankrupt?
air-travel loyalty-programs jet-airways
edited Aug 12 at 6:11
dda
13.9k32548
asked Aug 12 at 5:36
Lokesh
1,170223
If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
– David Foerster
Aug 12 at 8:55
1
@DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
– Calchas
Aug 13 at 2:21
add a comment |Â
up vote
16
down vote
favorite
up vote
16
down vote
favorite
I have a good number of frequent flyer miles with Jet airways, which is running into financial troubles. This is getting me a little worried and I have the following questions about it:
I have used some miles to book a ticket with its partner airlines [ANA], so I feel even if Jet airways goes bankrupt my travel should not be impacted. Is that correct?
If Jet airways goes bankrupt then will I loose all my miles? To be on the safe side, if I book a ticket using miles, will the airline refund me in cash if it goes bankrupt?
air-travel loyalty-programs jet-airways
edited Aug 12 at 6:11
dda
13.9k32548
asked Aug 12 at 5:36
Lokesh
1,170223
I have a good number of frequent flyer miles with Jet airways, which is running into financial troubles. This is getting me a little worried and I have the following questions about it:
I have used some miles to book a ticket with its partner airlines [ANA], so I feel even if Jet airways goes bankrupt my travel should not be impacted. Is that correct?
If Jet airways goes bankrupt then will I loose all my miles? To be on the safe side, if I book a ticket using miles, will the airline refund me in cash if it goes bankrupt?
air-travel loyalty-programs jet-airways
edited Aug 12 at 6:11
dda
13.9k32548
asked Aug 12 at 5:36
Lokesh
1,170223
edited Aug 12 at 6:11
dda
13.9k32548
edited Aug 12 at 6:11
dda
13.9k32548
edited Aug 12 at 6:11
dda
13.9k32548
13.9k32548
asked Aug 12 at 5:36
Lokesh
1,170223
asked Aug 12 at 5:36
Lokesh
1,170223
asked Aug 12 at 5:36
Lokesh
1,170223
1,170223
If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
– David Foerster
Aug 12 at 8:55
1
@DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
– Calchas
Aug 13 at 2:21
add a comment |Â
If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
– David Foerster
Aug 12 at 8:55
1
@DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
– Calchas
Aug 13 at 2:21
If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
– David Foerster
Aug 12 at 8:55
If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
– David Foerster
Aug 12 at 8:55
1
1
@DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
– Calchas
Aug 13 at 2:21
@DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
– Calchas
Aug 13 at 2:21
add a comment |Â
2 Answers
2
active
oldest
votes
up vote
27
down vote
accepted
If the airline is a part of an alliance (as in your first question), there might be some recompense in that other alliance partners might still recognise the points. But that's up to them and their individual terms with you in the ticket.
As far as the points themselves - you'll likely lose them. A prime local example in Australia was Ansett, which went under in 2001, and even years later people were wringing their hands over their lost points.
Similarly to a coffee shop - many give you a rewards card where the 10th coffee is free. If they went under - no free coffee. This is just on a bigger scale.
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
5
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
1
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
add a comment |Â
up vote
4
down vote
Bankruptcy means that the company has run out of money. At that point, a list of the company's debts is drawn up and prioritized. Money from selling off the company's remaining assets is used to pay off those debts as far as is possible.
A ticket for future travel that you have paid for is a debt owed to you. If money is available, that will be refunded. However, mileage points are just an offer to sell a service to you in the future at a discount and they generally have no cash value. They disappear with the airline.
answered Aug 12 at 20:08
David Richerby
9,15653768
2
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
4
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
27
down vote
accepted
If the airline is a part of an alliance (as in your first question), there might be some recompense in that other alliance partners might still recognise the points. But that's up to them and their individual terms with you in the ticket.
As far as the points themselves - you'll likely lose them. A prime local example in Australia was Ansett, which went under in 2001, and even years later people were wringing their hands over their lost points.
Similarly to a coffee shop - many give you a rewards card where the 10th coffee is free. If they went under - no free coffee. This is just on a bigger scale.
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
5
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
1
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
add a comment |Â
up vote
27
down vote
accepted
If the airline is a part of an alliance (as in your first question), there might be some recompense in that other alliance partners might still recognise the points. But that's up to them and their individual terms with you in the ticket.
As far as the points themselves - you'll likely lose them. A prime local example in Australia was Ansett, which went under in 2001, and even years later people were wringing their hands over their lost points.
Similarly to a coffee shop - many give you a rewards card where the 10th coffee is free. If they went under - no free coffee. This is just on a bigger scale.
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
5
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
1
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
add a comment |Â
up vote
27
down vote
accepted
up vote
27
down vote
accepted
If the airline is a part of an alliance (as in your first question), there might be some recompense in that other alliance partners might still recognise the points. But that's up to them and their individual terms with you in the ticket.
As far as the points themselves - you'll likely lose them. A prime local example in Australia was Ansett, which went under in 2001, and even years later people were wringing their hands over their lost points.
Similarly to a coffee shop - many give you a rewards card where the 10th coffee is free. If they went under - no free coffee. This is just on a bigger scale.
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
If the airline is a part of an alliance (as in your first question), there might be some recompense in that other alliance partners might still recognise the points. But that's up to them and their individual terms with you in the ticket.
As far as the points themselves - you'll likely lose them. A prime local example in Australia was Ansett, which went under in 2001, and even years later people were wringing their hands over their lost points.
Similarly to a coffee shop - many give you a rewards card where the 10th coffee is free. If they went under - no free coffee. This is just on a bigger scale.
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
answered Aug 12 at 5:53
Mark Mayo♦
128k745461259
128k745461259
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
5
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
1
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
add a comment |Â
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
5
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
1
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
– Lokesh
Aug 12 at 8:09
5
5
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
@Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
– Henning Makholm
Aug 12 at 9:00
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
– Lokesh
Aug 12 at 12:06
1
1
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
– Doc
Aug 12 at 19:11
add a comment |Â
up vote
4
down vote
Bankruptcy means that the company has run out of money. At that point, a list of the company's debts is drawn up and prioritized. Money from selling off the company's remaining assets is used to pay off those debts as far as is possible.
A ticket for future travel that you have paid for is a debt owed to you. If money is available, that will be refunded. However, mileage points are just an offer to sell a service to you in the future at a discount and they generally have no cash value. They disappear with the airline.
answered Aug 12 at 20:08
David Richerby
9,15653768
2
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
4
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
add a comment |Â
up vote
4
down vote
Bankruptcy means that the company has run out of money. At that point, a list of the company's debts is drawn up and prioritized. Money from selling off the company's remaining assets is used to pay off those debts as far as is possible.
A ticket for future travel that you have paid for is a debt owed to you. If money is available, that will be refunded. However, mileage points are just an offer to sell a service to you in the future at a discount and they generally have no cash value. They disappear with the airline.
answered Aug 12 at 20:08
David Richerby
9,15653768
2
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
4
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
add a comment |Â
up vote
4
down vote
up vote
4
down vote
Bankruptcy means that the company has run out of money. At that point, a list of the company's debts is drawn up and prioritized. Money from selling off the company's remaining assets is used to pay off those debts as far as is possible.
A ticket for future travel that you have paid for is a debt owed to you. If money is available, that will be refunded. However, mileage points are just an offer to sell a service to you in the future at a discount and they generally have no cash value. They disappear with the airline.
answered Aug 12 at 20:08
David Richerby
9,15653768
Bankruptcy means that the company has run out of money. At that point, a list of the company's debts is drawn up and prioritized. Money from selling off the company's remaining assets is used to pay off those debts as far as is possible.
A ticket for future travel that you have paid for is a debt owed to you. If money is available, that will be refunded. However, mileage points are just an offer to sell a service to you in the future at a discount and they generally have no cash value. They disappear with the airline.
answered Aug 12 at 20:08
David Richerby
9,15653768
answered Aug 12 at 20:08
David Richerby
9,15653768
answered Aug 12 at 20:08
David Richerby
9,15653768
answered Aug 12 at 20:08
David Richerby
9,15653768
9,15653768
2
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
4
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
add a comment |Â
2
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
4
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
2
2
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
– James Moore
Aug 12 at 23:56
4
4
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
– Calchas
Aug 13 at 2:14
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
@JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
– David Richerby
Aug 13 at 8:15
add a comment |Â
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If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
– David Foerster
Aug 12 at 8:55
1
@DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
– Calchas
Aug 13 at 2:21