MilesBuzz! - Would another airline honor UA tixs if it's liquidated




HansDKNY
Feb 14, 03, 11:30 pm
I have redeem an award on UA for domestic travel in early July and my friends paid for their UA tixs for flying during the same time.
Would another airline honor the tickets if UA goes under?.....
maybe US Airways or Delta?

Hans


Latitudes
Feb 14, 03, 11:35 pm
IIRC, when Ansett went under November 2001, other *A carriers honored ticketed reservations only.

The competitor, Qantas, very generously flew stranded passengers - who were in the middle of an itinerary - free-of-charge.

Rudi
Feb 15, 03, 12:38 am
no other aairline is legally required, after UA being in chapter 7, to nonour any (paid or award) tickets issued from UA ticket stock.

It all depends then on goodwill.


GUWonder
Feb 15, 03, 2:50 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Rudi:
no other aairline is legally required, after UA being in chapter 7, to nonour any (paid or award) tickets issued from UA ticket stock.

It all depends then on goodwill.</font>

Well, in the US, as part of the loan conditions/stabilization packages for dealing with 9/11 induced economic stresses, the remaining carriers may be required to honor the other carrier's ticketed passengers for an amount that is still being negotiated. I think $25 was the amount floated around a few weeks ago, but some of our carriers last week were balking at that and say it does not even cover a fraction of the variable cost.

avek00
Feb 15, 03, 7:18 am
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by GUWonder:
Well, in the US, as part of the loan conditions/stabilization packages for dealing with 9/11 induced economic stresses, the remaining carriers may be required to honor the other carrier's ticketed passengers for an amount that is still being negotiated. I think $25 was the amount floated around a few weeks ago, but some of our carriers last week were balking at that and say it does not even cover a fraction of the variable cost.</font>

IIRC, that requirement ends on April 30, 2003.

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Rudi
Feb 15, 03, 10:47 am
IIRC, that requirement ends on April 30, 2003.

and, my guess, that wouldn't apply anyway under chapter 7 (only under chapter 11).

dmfriedman
Feb 15, 03, 4:51 pm
The act actually requires carriage of passengers through May 19, 2003, and really focuses on Chapter 7 as opposed to Chapter 11. The act specifically says:

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
SEC. 145. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE.
(a) IN GENERAL.—Each air carrier that provides scheduled air transportation on a route shall provide, to the extent practicable, air transportation to passengers ticketed for air transportation on that route by any other air carrier that suspends, interrupts, or discontinues air passenger service on the route by reason of insolvency or bankruptcy of the other air carrier.
(b) PASSENGER OBLIGATION.—An air carrier is not required to provide air transportation under subsection (a) to a passenger unless that passenger makes alternative arrangements with the air carrier for such transportation within 60 days after the date on which that passenger’s air transportation was suspended, interrupted, or discontinued (without regard to the originally scheduled travel date on the ticket).
(c) SUNSET.—This section does not apply to air transportation the suspension, interruption, or discontinuance of which occurs more than 18 months after the date of enactment of this Act.
</font>

This means that if UA were to cease flying prior to 5/19/03 (the date is 18 months following the 11/19/01 enactment by President Bush of the statute), then other airlines would be required to make reasonable efforts to transport UA's ticketed passengers until 5/19/03, providing those passengers make arrangements with the other airline within 60 days of cessation of services by UA.

Latitudes
Feb 15, 03, 5:07 pm
So how about this?

I've booked and ticketed a *A award using UA miles. None of the flights are on UA metal, and all flight are after 5/19/03.

If UA folded prior to this date, would *A partners honor the ticket? I realize they are not covered by the legislation quoted above. Any ideas?

HansDKNY
Feb 15, 03, 5:43 pm
____________________________________________
This means that if UA were to cease flying prior to 5/19/03 (the date is 18 months following the 11/19/01 enactment by President Bush of the statute), then other airlines would be required to make reasonable efforts to transport UA's ticketed passengers until 5/19/03, providing those passengers make arrangements with the other airline within 60 days of cessation of services by UA.
____________________________________________


good point,
but what happens to passengers who travel after 5/19/03?

Mrukk
Feb 15, 03, 6:10 pm
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Latitudes:
So how about this?

I've booked and ticketed a *A award using UA miles. None of the flights are on UA metal, and all flight are after 5/19/03.

If UA folded prior to this date, would *A partners honor the ticket? I realize they are not covered by the legislation quoted above. Any ideas?</font>

This is almost exactly my situation. I am planning on booking a *A award using UA miles for travel early next year. I'd love to hear anyones ideas on the issue http://www.flyertalk.com/forum/smile.gif

freakflyer
Feb 15, 03, 9:16 pm
Maybe time to check out rewardguard.com if you are really worried about this? May help you sleep better at night, though it almost certainly won't be needed.

Latitudes
Feb 15, 03, 10:31 pm
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Latitudes:
So how about this?

I've booked and ticketed a *A award using UA miles. None of the flights are on UA metal, and all flight are after 5/19/03.

If UA folded prior to this date, would *A partners honor the ticket? I realize they are not covered by the legislation quoted above. Any ideas?</font>

I guess what Mrukk and I are really asking is: When does UA pay the other *A carriers for my flights? Is it when I ticket, or when I travel?

Rudi
Feb 15, 03, 11:31 pm
after the flights (... if ever ...)

pitflyer
Feb 16, 03, 2:14 am
A lot of these same questions have buzzed around the US board. The general consensus is that while revenue tickets should be honored, award tickets are a different story, especially those on partner carriers. I do not believe airlines 'prepay' for flights on other carriers. My guess it would really be up to the other carrier ..

avek00
Feb 16, 03, 7:14 am
1. Airlines only get paid AFTER travel is completed, so a ticket is worthless if the issuing airline ceases operations before travel.

2. The Star partners *MIGHT* honor a UA-issued ticket, but IMHO, do not expect the terms to be anywhere near as generous as those for the AN folks. UA MP is one of the world's largest FFPs, and honoring UA tickets out of goodwill will cause a sizeable dent in revenues, especially if the shutdown occurred over a holiday or the summer travel period.

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Thank you for choosing Continental Airlines, a proud member of the SkyTeam Alliance.

sowalsky
Feb 16, 03, 9:27 pm
My thoughts on this was that if a specific airline jumped at the opportunity to honor all (award and paid) tickets it would be a move to pull FFs to their airline. I think that the only airline in that position is DL. Anyone care to differ?



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