MilesBuzz! - Hedging Against Airline Bankruptcy




LAJim
Nov 14, 01, 3:49 pm
I just finished reading an article in Time magazine and it certainly does not look like several of the U.S. carriers will remain in operation much longer. American, Delta and Southwest look to be in the best shape but carriers such as US Airways and America West have a foot in the firmly planted in the grave and I see no hope even with a government bail out.

I don't have a lot of miles on US Airways (50,000) so its not really worth it to buy insurance to protect my miles, however I do want to use them! I liked US Airways Dividend Miles program for the fact that I could transfer miles from my AMEX Membership Rewards.

My thought is to cash in my Dividend miles for an Award Certificate on Alitalia (please tell me they aren't in financial trouble!) and then use it within the year. I don't have much confidence in some of their other partners: Latin Pass, Northwest or Sabena (duh, but still listed as a US Airways partner) staying around either.

My question is once the Award Certificate is granted on a partner carrier (Alitalia in this case) are they legally obligated to honor it if the affiliate program goes bankrupt?


TribeFlyer
Nov 14, 01, 4:23 pm
Welcome, LAJim!

Perhaps this question would be better answered in the US Airways Forum. Also, since you've been transferring AMEX MR points to DM, you may be interested in their current promotion of 20% extra miles if you transfer before 11/16/01:

US Airways Mileage Bonus when you transfer Membership Rewards points

Earn Dividend Miles faster! From 10/25/01 through 11/16/01, you will receive a 20% mileage bonus for all Membership Rewards points that are transferred to Dividend Miles. To participate, register prior to transferring points by calling 1-800-872-4738 and enter Bonus Request Number 5363.



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