Lifemiles downgraded by credit rating company Moody-sounds like they are in trouble
May 11, 2020, 1:46 am
#31
Join Date: May 2004
Location: SIN (LEJ once a year)
Programs: SQ, LH, BA, IHG Diamond AMB, HH Gold, SLH Indulged, Accor Gold, Hyatt Discoverist
Posts: 7,739
Well, when flying is permissible again and assuming there is availability I'm pretty sure there will be a run on LM tickets though whether they get honored or not will have to be seen. Until then, we can only hope and wait I would say. I got a ticket booked for Oct on SQ (Japan - SE Asia) via LM and enough miles in my account for a RT to Europe which I was planning, but alas that is not forthcoming. The miles may go up in "smokes", not great of course, but I'm sticking to expect the worst and be pleasantly surprised if i can burn them. YMMV.
May 11, 2020, 7:31 am
#32
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Lifemiles deemed safe.
https://www.prnewswire.com/news-rele...301056306.html
https://www.prnewswire.com/news-rele...301056306.html
The problem LM faces, as would any separate program is that it makes money by selling miles to its primary carrier. As that carrier is now bust, it's source of revenue has just dropped. How long can it survive without revenue?
In different circumstances, someone would buy LM and offer miles holders a lifeline. But, I'm not sure who has cash to throw around and needs (or wants) to purchase customer goodwill when it can't sell tickets for cash effectively.
May 11, 2020, 11:29 am
#33
Join Date: Oct 2010
Location: Rio de Janeiro
Programs: AA / AV
Posts: 647
I dont know the particulars of Lifemiles, but nowadays it is more usual, for most mileage programs, to be 80% of their revenue to be due to banks and merchants and only 20% to flights
May 11, 2020, 2:58 pm
#34
Join Date: Jan 2005
Location: San Francisco
Programs: All-Around Kettle
Posts: 3,289
The LifeMiles bankruptcy FAQ says:
Does this mean I can cancel a July 2020 LM award ticket I have on NH metal without a penalty?
Members will continue to earn miles on Avianca flights as well as redeem LifeMiles for Avianca tickets as normal. Avianca expects tickets redeemed with miles will continue to be exempt from change penalty fees until October 2020.
Does this mean I can cancel a July 2020 LM award ticket I have on NH metal without a penalty?
May 11, 2020, 3:12 pm
#35
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
What bank or third party would want to pay cash for miles which are to be redeemed on Avianca? While there are certainly other uses for those miles, the core use is to fly on Avianca.
May 12, 2020, 11:18 am
#36
FlyerTalk Evangelist
Join Date: Aug 2011
Location: Barcelona, London, on a plane
Programs: BA Silver, TK E+, AA PP, Hyatt Globalist, Marriott LT Plat, Hilton Diamond
Posts: 13,047
As long as airlines are grounded, LifeMiles will continue getting revenue from the banks, nothing from the airlines, BUT will also be spending nothing on reward flights.
Even when Aeroplan was going to lose the Air Canada link, people still used their Aeroplan credit cards as normal. The general population is not as obsessed about their credit card miles as FTers.
May 13, 2020, 8:29 pm
#37
Join Date: Oct 2012
Location: Tokyo
Programs: Marriott Plat, HH G,Hyatt E,*A Gold, OW Emerald.
Posts: 3,023
The LifeMiles bankruptcy FAQ says: Does this mean I can cancel a July 2020 LM award ticket I have on NH metal without a penalty?