Is anyone worried about their AAdvantage miles balance? (Ch 11, etc.)
#1
Original Poster
Join Date: Apr 2002
Location: +61
Programs: SQ*PPS, QF-WP1 & LTG, VA-Gold, Marriott*LTT, Hilton*Gold, Accor*Platinum
Posts: 5,735
Is anyone worried about their AAdvantage miles balance? (Ch 11, etc.)
Obviously I like EXP status (although that will obviously go away) - 0 miles at this point and likely to finish the year like that.
But my precious millions of AAdvantage miles.
Anyone worried about AA going through Chapter 11 / booking F awards on CX / converting to gift cards?
But my precious millions of AAdvantage miles.
Anyone worried about AA going through Chapter 11 / booking F awards on CX / converting to gift cards?
#3
Join Date: Nov 2001
Location: RDU
Posts: 2,263
Given my current sizable balance, I have very slight worries. However, if AA wipes out AAdvantage, then what will be left will be a completely different airline. In essence, they'd have to basically start from scratch. Key corporate travelers and decision makers would revolt, and I would expect Citi and Barclays would be dragged into this given the amount of miles people 'bought' through them.
Net net, anything is possible, but closing/restarting AAdvantage seems like an unlikely scenario to me.
Net net, anything is possible, but closing/restarting AAdvantage seems like an unlikely scenario to me.
#4
Join Date: Feb 2003
Location: Washington, DC
Programs: AA Executive Platinum/Million Miler, Marriott Titanium Elite-Lifetime, Hilton Gold
Posts: 3,201
No. Even if AA enters Chapter 11, the carrier will get DIP financing and the Court will surely grant approval to handle passenger liabilities (tickets, credits, miles, etc.) as part of the normal course of business, as happened with every other major airline bankruptcy in the last 20 years.
#6
A FlyerTalk Posting Legend
Join Date: Sep 2003
Location: Living the dream in Antigua and the nightmare in Florida
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I am concerned about people getting sick and dying from this virus.
I am concerned about people who have lost their jobs and may struggle.
I am concerned about people who will need hospitalization for problems not related to the virus, and they may not be able to get care.
I am concerned about the economic and health impact on my small island nation.
I am concerned about millions of small businesses that may get wiped out.
I am concerned about my friends who are struggling to get home.
My frequent flyer balance is pretty low on my list of concerns. YMMV.
I am concerned about people who have lost their jobs and may struggle.
I am concerned about people who will need hospitalization for problems not related to the virus, and they may not be able to get care.
I am concerned about the economic and health impact on my small island nation.
I am concerned about millions of small businesses that may get wiped out.
I am concerned about my friends who are struggling to get home.
My frequent flyer balance is pretty low on my list of concerns. YMMV.
#7
Join Date: Nov 2001
Location: RDU
Posts: 2,263
I am concerned about people getting sick and dying from this virus.
I am concerned about people who have lost their jobs and may struggle.
I am concerned about people who will need hospitalization for problems not related to the virus, and they may not be able to get care.
I am concerned about the economic and health impact on my small island nation.
I am concerned about millions of small businesses that may get wiped out.
I am concerned about my friends who are struggling to get home.
My frequent flyer balance is pretty low on my list of concerns. YMMV.
I am concerned about people who have lost their jobs and may struggle.
I am concerned about people who will need hospitalization for problems not related to the virus, and they may not be able to get care.
I am concerned about the economic and health impact on my small island nation.
I am concerned about millions of small businesses that may get wiped out.
I am concerned about my friends who are struggling to get home.
My frequent flyer balance is pretty low on my list of concerns. YMMV.
However, this is literally a forum for frequent flier programs (I mean, heck, the name is 'Flyertalk'). Hence, the postings are about, well, frequent flier programs.
#8
Join Date: Nov 2001
Location: RDU
Posts: 2,263
#9
FlyerTalk Evangelist
Join Date: Jul 1999
Location: ORD/MDW
Programs: BA/AA/AS/B6/WN/ UA/HH/MR and more like 'em but most felicitously & importantly MUCCI
Posts: 19,719
Points balances did not disappear in the post 9/11 bankruptcies, and in this era FF programs have become primarily profit engines for the airlines rather than net liabilities, so I wouldn't worry unless AA ceases to exist, which is highly unlikely.
#10
Join Date: Mar 2005
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Programs: AA EP, AA AC
Posts: 4,268
Safe Travels
#11
Join Date: Apr 2009
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Even in the still very unlikely event that AA the airline ceased to exist, it’s possible that AAdvantage would be spun off and continue to exist and/or be absorbed into whatever picks up the pieces of the airline.
#13
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,417
I would note that the US airlines today are reportedly receiving billions in dollars in aid from the federal government. They already had extremely high levels of liquidity due to the lessons learned during 9/11. Nobody who has frequent flyer miles in a major US airline program needs to worry about these miles becoming "useless" -- unless you're naturally worried about the end of the world and are a prepper.
The situation is different if you have frequent flyer balances or tickets will smaller and less successful airlines. Like I don't believe it likely that Norwegian will be flying across the Atlantic anytime soon (and if they do resume service, it will be quite limited). I'm a little worried about Frontier, simply because their business model seemed weak before this crisis. But I'd be only a little worried. But the major US airlines are in pretty good shape right here, especially as far as frequent flyers are concerned.
The situation is different if you have frequent flyer balances or tickets will smaller and less successful airlines. Like I don't believe it likely that Norwegian will be flying across the Atlantic anytime soon (and if they do resume service, it will be quite limited). I'm a little worried about Frontier, simply because their business model seemed weak before this crisis. But I'd be only a little worried. But the major US airlines are in pretty good shape right here, especially as far as frequent flyers are concerned.
#14
FlyerTalk Evangelist
Join Date: Jul 1999
Location: ORD/MDW
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That is true. When NW merged into DL and DL made Amex its sole CC partner, the bank NW used to run with (US Bank) kept its loyalty program mechanism alive with a new name... FlexPerks. The alternate-currency industry is very dynamic.
#15
Moderator: American AAdvantage, Travel Safety/Security & Texas, FlyerTalk Evangelist
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Was anyone a part of TWA's frequent flyer program? I'm assuming they had one. What happened to those miles? What about status?