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Is anyone worried about their AAdvantage miles balance? (Ch 11, etc.)

Is anyone worried about their AAdvantage miles balance? (Ch 11, etc.)

Old Mar 25, 20, 3:40 am
  #1  
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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?
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Old Mar 25, 20, 5:20 am
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no... The US government will help out all airlines...
and chapter 11 is used often in business to help them organize thru tough times
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Old Mar 25, 20, 5:24 am
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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.
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Old Mar 25, 20, 5:41 am
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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.
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Old Mar 25, 20, 6:05 am
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How about status, shouldn't they extend it for a year for everyone? That's what I would expect...
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Old Mar 25, 20, 6:41 am
  #6  
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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.
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Old Mar 25, 20, 6:43 am
  #7  
 
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Originally Posted by SJCFlyerLG View Post
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.
Nobody on this forum, or in this world, would disagree with you.

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.
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Old Mar 25, 20, 6:44 am
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Originally Posted by nk15 View Post
How about status, shouldn't they extend it for a year for everyone? That's what I would expect...
Being discussed here:
https://www.flyertalk.com/forum/amer...ronavirus.html
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Old Mar 25, 20, 7:21 am
  #9  
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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.
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Old Mar 25, 20, 7:27 am
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Originally Posted by BearX220 View Post
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.
+1 (FT old school right there).

Safe Travels
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Old Mar 25, 20, 8:56 am
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Originally Posted by BearX220 View Post
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.
Even in the still very unlikely event that AA the airline ceased to exist, itís possible that AAdvantage would be spun off and continue to exist and/or be absorbed into whatever picks up the pieces of the airline.
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Old Mar 25, 20, 8:58 am
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AA went through chapter 11 less than a decade ago. Points and program survived.

​​​​​No reason to expect any different.
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Old Mar 25, 20, 10:00 am
  #13  
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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.
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Old Mar 25, 20, 10:01 am
  #14  
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Originally Posted by ashill View Post
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.
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.
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Old Mar 25, 20, 10:31 am
  #15  
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Originally Posted by BearX220 View Post
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.
Sure, and when HP and US merged accounts were combined, and the same thing happened when US and AA merged. Mergers have been pretty common for many of us.


Was anyone a part of TWA's frequent flyer program? I'm assuming they had one. What happened to those miles? What about status?
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