Originally Posted by
vinnmann
There has been discussion floating around about VS not surviving this. I booked an award on DL metal with VS miles. For awards, when does VS "pay" its partners for the itinerary? If VS goes belly up and DL survives, will the ticket still be valid? I am assuming if DL goes belly up, and VS survives, they will try to re-accommodate me on their metal or refund my taxes and miles. I want to take the trip. I just don't want to lose a quarter million miles.
Nope payment takes place after you fly. So if VS goes belly up prior to you flying, Delta will likely not let you fly. And simply put most likely if VS goes belly up your points are worthless. Your points are actually held by a separate entity from VS but it likely isn't funded enough to keep the program running post VS collapse if it happens. All that said Delta does own a chunk of VS and their separate loyalty program so it is possible they might honor the flights but I wouldn't bet on it.