GIft cards if ailines bankrupt
Mar 11, 2020, 11:05 pm
#1
Original Poster
Join Date: Nov 2015
Posts: 114
GIft cards if ailines bankrupt
Hi!
Many of us have gift cards to airlines through our credit card airline credit. What happens to these gift cards when an airline goes bankrupt?
Are they just deemed unsecured credit and get pennies on the $ or are they treated differently and can be used $ for $?
Thanks
Many of us have gift cards to airlines through our credit card airline credit. What happens to these gift cards when an airline goes bankrupt?
Are they just deemed unsecured credit and get pennies on the $ or are they treated differently and can be used $ for $?
Thanks
Mar 13, 2020, 12:10 pm
#3
Moderator: Information Desk, Women Travelers, FlyerTalk Evangelist
Join Date: Jul 2003
Location: Chicago, IL, USA
Programs: AA Gold
Posts: 15,643
Hi!
Many of us have gift cards to airlines through our credit card airline credit. What happens to these gift cards when an airline goes bankrupt?
Are they just deemed unsecured credit and get pennies on the $ or are they treated differently and can be used $ for $?
Thanks
Many of us have gift cards to airlines through our credit card airline credit. What happens to these gift cards when an airline goes bankrupt?
Are they just deemed unsecured credit and get pennies on the $ or are they treated differently and can be used $ for $?
Thanks
Mar 14, 2020, 9:31 pm
#4
Original Poster
Join Date: Nov 2015
Posts: 114
I am assuming an unflown ticketed reservation is however treated differently? It will still be honored if the airline is still flying.
But what if the airline shuts down? Will it be transferred to other airlines in the alliance? What are the laws regarding this?
Also here is something: let's say I book/pay using aa.com but the flight is on Cathay metal and Cathay shuts down before the flight, does AA then have to make other arrangments for me? or am I on my own?
Thanks
Mar 14, 2020, 9:42 pm
#5
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Join Date: Jun 2000
Location: Benicia CA
Programs: Alaska MVP Gold 75K, AA 3.8MM, UA 1.1MM, enjoying the retired life
Posts: 31,849
Was that the case when AA and UA went bankrupt under chapter 11 (reorganization)? I can't recall anyone complaining about airline gift cards not being any good. Now, if you're referring to chapter 7 where the assets are sold off and the carrier grounded, very different there. They have a lot of leeway in chapter 11 to reduce employee costs and renegotiate aircraft leases. I'd can't see any U.S. carrier not wanting to go that route before permanently grounding the fleet.