What happens to AA miles (if) they go Bankrupt?
Oct 3, 2011, 11:22 am
#1
Original Poster
Join Date: Sep 2011
Location: BOS
Posts: 85
What happens to AA miles (if) they go Bankrupt?
Rumor has it on the street that AA will go bankrupt.
What does that do to all our miles
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What does that do to all our miles
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MODERATOR'S NOTE
As stated downthread:
It is not generally in the purview of the moderators to remove posts that may be inaccurate or controversial. Rather, FlyerTalk's membership as a whole tends to self-correct such issues.
Those who read a single statement from an anonymous poster on a public bulletin board and take actions based on that statement always do so at their own risk.
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Last edited by dstan; Oct 3, 2011 at 3:16 pm
Oct 3, 2011, 11:36 am
#2
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 31,007
Or, similar to what really happened with every other legacy carrier that went bankrupt but not out of business, none of your miles will be lost as miles aren't debt or equity. They are a competitive tool and all bankruptcy courts have agreed to leave the program in place to aid in long-term success.
I'm aware of very few miles actually being lost - one Australian carrier that I can't think of right now is the only one I remember. TWA survived, along with US, United, etc. that filed but didn't shut down.
I'm aware of very few miles actually being lost - one Australian carrier that I can't think of right now is the only one I remember. TWA survived, along with US, United, etc. that filed but didn't shut down.
Last edited by CPRich; Oct 3, 2011 at 12:18 pm
Oct 3, 2011, 11:43 am
#3
Join Date: Feb 2011
Programs: All of them
Posts: 214
[redacted quote from deleted post - moderator]
I didn't lose my NWA miles when they went bankrupt, and when they merged with DL my miles remained.
I didn't lose my NWA miles when they went bankrupt, and when they merged with DL my miles remained.
Last edited by magic111; Oct 3, 2011 at 3:36 pm Reason: redacted quote from deleted post
Oct 3, 2011, 11:45 am
#4
In Memoriam
Join Date: Apr 2001
Location: dallas texas usa
Programs: aa plt 4.9MM LTAC
Posts: 14,828
it would be stupid of them to irritate their ffers....if they shut down & liquidated, perhaps, but with twa, aa bought assets and picked up the ffers mis....this happened w/panam & others....i'm not worried...
Oct 3, 2011, 11:51 am
#5
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Intermountain West
Programs: Too many to list
Posts: 12,082
Since this is AA specific I'll move it there.
Oct 3, 2011, 11:57 am
#6
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
It is very highly doubtful that AA would go into a Chapter 7. Just like CO, US, UA, DL, and NW they would restructure under a Chapter 11. Your miles would not change nor would the AAdvantage program change other than normal competitive situations. I think the OP (and others) should spend more time worrying about their upgrades clearing.
Oct 3, 2011, 12:22 pm
#7
Moderator: American AAdvantage, Signatures
Join Date: Jan 2008
Location: London, England
Programs: UA 1K, Hilton Diamond, IHG Diamond Ambassador, National Exec, AA EXP Emeritus
Posts: 9,765
Every mile minted is indeed recorded as a future liability and must be accounted for as such on financial statements (specifically on the balance sheet and addenda).
Oct 3, 2011, 12:24 pm
#8
Join Date: Dec 2010
Posts: 1,860
This is quite funny because I thought of this for the first time as I seen American Airlines becoming worth under 1 billion dollars and declining more. Now that I have realized this I now want to start booking trips with these AA miles OR alternatively points.com transfer out like 163k points.
There will be a fire sale of miles and the devaluation of the miles it would seem could be just because of the small chance they may not be worth anything. If another airliner bought them I imagine we would be able to still use their miles in the new system. While the conversion may be iffy, it wouldn't be an absolute loss....a very concerning situation.
There will be a fire sale of miles and the devaluation of the miles it would seem could be just because of the small chance they may not be worth anything. If another airliner bought them I imagine we would be able to still use their miles in the new system. While the conversion may be iffy, it wouldn't be an absolute loss....a very concerning situation.
Oct 3, 2011, 12:25 pm
#9
Moderator: American AAdvantage
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Maître-plongeur des Muccis
Posts: 62,948
Thread retitled.
I think AA is the only existing legacy airline that has not "gone bankrupt" - reorganized under Chapter 11 - and I can't recollect one instance when the frequent flyers' miles were lost due to these reorganizing.
My lifetime AA Gold status occurred because of a bankruptcy - TWA's actually, which ultimately led to AA's takeover and absorption of my >5M Aviators miles into my AAdvantage account, which was already >5M AAdvantage miles.
I think AA is the only existing legacy airline that has not "gone bankrupt" - reorganized under Chapter 11 - and I can't recollect one instance when the frequent flyers' miles were lost due to these reorganizing.
My lifetime AA Gold status occurred because of a bankruptcy - TWA's actually, which ultimately led to AA's takeover and absorption of my >5M Aviators miles into my AAdvantage account, which was already >5M AAdvantage miles.
Oct 3, 2011, 12:26 pm
#10
Join Date: May 2008
Location: Orange County, CA
Programs: AA LT PLT, DL PLT, HH DIA, IHG PLT, Hertz PLT, Bonvoy GLD, Avis Pres Club
Posts: 1,265
Speculation: According to the purser on a recent flight, AA has tons of money and makes a profit...they are just cooking the books to make it look like a loss in the hopes of breaking union contracts.
Oct 3, 2011, 12:33 pm
#11
Join Date: Jul 2002
Location: Alamo, CA
Posts: 43
$1000 in future travel certificates ?
I understand FF miles have carried over Chapter 11 bankruptcies.
What is the status of these certificates in case AMR does a pre-packaged Chapter 11 ?
Is my standing better in case I buy tickets with it(need it in April 2012) ?
What is the status of these certificates in case AMR does a pre-packaged Chapter 11 ?
Is my standing better in case I buy tickets with it(need it in April 2012) ?
Oct 3, 2011, 12:38 pm
#12
Join Date: Jul 2003
Location: Boston, MA
Programs: AA Lifetime Plat
Posts: 205
If AA went Chapter 11 and then told its mileage holders to get lost, then it would shortly find itself in Chapter 7.
Oct 3, 2011, 12:44 pm
#13
Join Date: Oct 2008
Location: Singapore
Programs: BAEC Gold, Hh Gold, NH*G, SPGP, SQ-CC
Posts: 1,381
AA is making losses yearly, so good luck.
Oct 3, 2011, 12:46 pm
#14
Join Date: Sep 2011
Location: SHV
Programs: Nada :(
Posts: 109
I've been pretty concerned about this seeing as my wife and I just accrued 300k+ miles and I really don't want to lose them. It's nice to hear that we'd hopefully keep them. I assume this is the same for ticketed rewards?
Oct 3, 2011, 12:56 pm
#15
Join Date: Jun 2011
Posts: 3,528
If they just cancelled everyone's tickets, many people would never fly AA again, and the airline would be doomed.
Your miles and flights are fine.