Originally Posted by
Often1
First, highly unlikely that the government permits any major carrier to enter any form of bankruptcy. $50 Billion in bailout + loans ought to go a long way for a long time.
Second, in the unlikely event of a BR, what happens to FFP accumulated benefits and to the FFP going forward is a matter for the BR court. In theory, "miles" could simply be zeroed out and program closed. But, the practical answer is that brand loyalty is what gets a carrier back on its feet and the FFP includes those. Thus, the likelihood of the program going away is close to zero. Could it happen? Sure. But, is it likely? No.
All of this does point to the risks associated with hoarding miles & points. Entirely possible that in a new program, what took 50K points today will take 300K.
I agree that it seems unlikely that they go bankrupt. If anything too, it'd likely Chapter 11 which allows UA to restructure while operating as normal from a customer perspective. Many companies emerge from Chapter 11 relatively unchanged from an outsider's point-of-view.