They need cash, bad -- and they're willing to gamble that you either won't be able to use the miles, or the miles will be devalued. Since the promo lasts for 25 more days and I just transferred SPG miles to get the 50% bonus, I will wait a while to see if they sweeten the deal.
Moderator: US Airways Dividend Miles, Starwood Preferred Guest & Virgin America eleVAte
Join Date: Oct 2002
Location: Phoenix, AZ USA
Programs: US CP; SPG Plat; Hyatt Diamond
Posts: 5,681
Quote:
Originally Posted by fsa_ea
By a person "at Lufthansa", you mean an employee of Lufthansa?
No, it was a person sitting on a park bench, on the Lufthansa campus near FRA.
Yes, of course. I'll be more specific: Someone from FT reported calling Lufthansa and asking an agent, essentially, "What would happen if I had a frequent flier ticket on Lufthansa, issued by US Airways, and US goes out of business?" The answer was that LH would honor it.
Value that reported second-hand information at something close to what you paid for it.
I'm sure this has been discussed a gillion times, but if you
1) bought miles,
2) immediately redeemed on a partner airline for travel 11 months from now, and
3) US Air liquidated in 3 months,
would you award ticket be any good?
You would be at the mercy of the operating airlines on that award ticket and that is not a position I would want to find myself in given the other Star Alliance carriers are also financially hurting and would want to get something upfront rather than mostly nothing from the ticket-issuing carrier.
You would follow the terms of the operating carrier. When you redeem your miles, the ticket is issued and the operating carrier is "paid."
The operating carrier is free to do whatever the operating carrier wants to do when the ticket-issuing carrier has gone under/into liquidation, but keep in mind that the overwhelming majority of the payment that is part of ticket settlement occurs after the flight is flown. In other words the operating carrier is most likely going to find that they go mostly unpaid if flying passengers on tickets issued by a carrier that has gone under.