MilesBuzz! - Paper FF Award Tickets as Bankruptcy Protection

Kiplingers recently alleged that FFs could protect themselves in the event of an airline bankruptcy (Ch. 7 liquidation) by getting a paper FF ticket for a partner carrier (say a LH award obtained with UA miles).

This seems to go against the prevailing views on FT as I understand them, namely that a liquidation would likely mean the awards were worthless, unless the airlines chose to be gracious in honoring the award, or unless the FF program transferred over to another carrier by virtue of an acquisition/merger etc.

Any thoughts?

All we can do is speculate - In my opinion it is lilely third party carriers would honor booked awards as a good will gesture of sorts - but kinda doubt they would treat paper tickets differently than electronic. Both are easiliy concellable in their system if they don't want to honor them.

When Ansett went bankrupt I had 4 F awards RTW and sin on SQ and air canada.
Apparently if I had had a paper ticket they would have honored them but as it was booked and they said not ticketed(how would i know that)I lost over 500k.

Id take the ticket every time.

My thinking is that the providing airline is paid when the paper ticket is issued. Therefore, I would think you would have a better chance of them honoring them with a paper ticket. It would be much like you bought it from the providing carrier itself, which basically you did, it was just in an alternate form of currency.

However, a paper ticket for use on the liquidated carrier would only make a good keepsake.

My thinking is that the providing airline is paid when the paper ticket is issued.

Problem is, they aren't. It's after the flight is taken. That's how the industry works.

Here's what a paper ticket will be worth, IMHO:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&category=810&item=2286109492&rd=1

less, of course, the fees to issue a paper ticket.