Often1

This is US law, not a policy. It applies if the carrier does not operate due to bankruptcy. The claim must be filed within 60 days of the failure to provide the service, e.g., the scheduled flight, not the ticketing date.

This is because the vendor, e.g. air carrier, will of course lack the funds to make good on the chargeback and thus without the protection, the chargeback would be granted, but there would be no funds to pay it.

US banks withhold a percentage of funds due to a vendor for just this reason. Given AB's situation, I suspect that CC issuers in the US have been witholding a significant percentage and will have more than enough cushion should AB cease operations. But, if they don't, that won't affect the consumer.

This is, incidentally, why one should never, ever, never pay for a service such as an air ticket to be rendered in the future, other than with a credit card (not a debit card).

MSPeconomist

Don't use a debit card and don't pay in cash, by check or via wire transfer for pretty much anything that's travel related if at all possible. At least if you're based in the USA, you have much better consumer protections when you use a credit card.

flyercity

What happened to BMI, Malev etc status customers when those airlines went bankrupt? IIRC they were taken over by other programmes?

Greg45

Just for clarification, I would like to emphasize "if you're based in the USA". As AB is a German airline, a lot of readers of this thread will be German. German credit card payments do not allow this kind of chargeback.

TPJ

Is it only me who does not see any reference to Topbonus on airberlin.com? I mean I can still log-in, but I do not see any re-direct to the Topbonus Shop or the redemption booking engine. If memory serves there was a direct link to Topbonus at the top of the page.

PS> I removed AB from my FT profile. Time to move on - I had some some 18k miles left (after redeeming at the Topbonus shop) - so not too big damage.

Often1

That is irrelevant.

That was then. This is now.

Maybe some White Knight will come along and will want to keep AB's elites and honor the liability. Maybe it won't.

flyingfkb

It probably says somewhere in the fine print that topbonus can suspend the program at any time without advanced notification and that there is need for reimbursement whatsoever.

I have an intra-Germany award flight in October (booked before the insolvency) but I bought a Deutsche Bahn ticket just in case.

skaya

I see I can still also book AB flights on BA.com using avios.

Will it be ticketed?

FlyerTalker005

Of course they allow it.

Directive 2007/64/EC on payment services in the internal market (PSD) and Directive 2008/48/EC on credit agreements for consumers (CCD) form the main legal bases to request a charge back in the following cases:
• the transaction is not authorized by the consumer/cardholder;
• the trader does not respect the consumers’ rights;
• in the case of bankruptcy.
According to the ECCs participating in the project, these Directives have been transposed into the domestic legislation in all the EU member States, Norway and Iceland.

SK2751

In all the two cases I experienced, I have got a 100% charge back with a Danish credit card in an airline bankruptcy case. I doubt German would be very different. In both cases (both about 8+ years ago) I got the entire amount paid back immediately at claim time (the card issuer assumes that the credit card owner is right), with a note that they are investigating the case and they may withdraw the money again later, when the case is closed, if they assess that the airline was right. In both cases the claim took several months to resolve, before a final email confirming that they now resolve in my favor arrived.

Of course, in both cases, I lost a lot money, as I had to buy new, much more expensive now, tickets.

mobilemario

I've purchased my miles via this promo
AB: 70 000 Topbonus miles for 349,- Eur
Any chance of getting my money back if paid with a credit card?

erik123

Zero chance I think.

Often1

Your rights as a creditor, which is all you are as a ticket or miles holder, are determined by laws specific to the jurisdiction.

The EU and US both provide specific protection in bankruptcy for tickets purchased with a credit card. There is no such protection for other forms of payment and it is one of the reasons you should never purchase a future service such as an air ticket with anything other than a credit card.

People who have purchased AB tickets with any other form of payment are unlikely to see much of anything if AB cannot perform their ticket.

samwkchan

What about not-yet-flown award tickets on partner airlines redeemed with TopBonus miles? Mine are going to be used in September. Should I be worried?

LJ01

Unless you've paid for the insolvency insurance (which nowadays is offered extensively and will be marketed even more aggresively..). As for credit card, not all airlines are on the verge of bankruptcy. I agree, in this case, the insolvency was to be expected (it was just a matter of time) but generally I don't pay the extra cerdit card fee when the airline isn't about to go into insolvency.