Originally Posted by ChgoBob
What would happen to award flights booked with OS (European segments) if this were to happen? I see many connects from BUD and VIE using OS, some that I am considering right now.
If I understand correctly, the carriers are not paid until the flight is taken, so if OS dropped out of *, would they honor the reservations, and still get paid, or would there be some massive rebookings going on? (with C seats possibly booked solid on other carriers)
Are there any precedents for something like this, or any regulations?
Yes, there is a precedent - the entry of Swiss into Star Alliance. They had a variety of FF partnerships with oneworld airlines. There were interrim periods during which miles could be earned with/on these partners and award tickets could still be used. I believe the grace period was several months in some cases (CX, IB) to over a year in others (AA).
I doubt it would be a major issue, except maybe for tickets booked 330 days in advance or something.