Originally Posted by
UA_Flyer
There are differences in Chapter 7, Chapter 11 and Chapter 13 bankruptcies.
Bankruptcy is a general term used to described various bankruptcy provisions.
PMUA and PMCO have declared Chapter 11 multiple times including post 9/11.
Having flown and accumulated miles since late 80s, I have not lost one single miles through bankruptcy, including when Pan Am closed for business. Delta honored all my Pan Am miles without any issues.
Where miles are at risk is where the FFP is a separate entity from the carrier, e.g. Top Bonus for AB and Aeroplan for AC. In the former, when AB went under, there was nobody to bail out TB and those miles became worthless (although there were some commercial ventures to woo account holders to other carriers with offers). In the case of the US carriers, the FFP is simply an administrative unit of the enterprise and thus, the program can't go independently BR in any of its forms. If AC were to run into trouble, I have no doubt but that Canada will bail it out. I can't imagine anything similar as to AP.