Delta's Demise
 

I have 4 Skymiles redeemed tickets for next march. I also have quite a few miles built up in Skymiles. If Delta declares bankruptcy next month, how is this likely to affect my unused tickets and my Skymiles balance?
Thanks, Joe

You should be fine....as long as they declare Chapter 11 and the government determines their FF miles need to be cut (they have not done this to other airlines). Filing for bankruptcy is nothing more than asking for protection from creditors while maintaining a "normal" course of business. Now if they were unable to emerge from bankruptcy that is a different story...

So what will hapeen to United. They have already filed for chapter 11 and I do not see them recovering anywhere in the near future. What is the future for their miles?

Visit the United forum. Read the sticky at the top of the forum entitled something like "So what will happen to United. What is the future for their miles?" ;)

(and whatever you do, don't ask that question in there, cause it's been covered so many times!)

Short answer: They will eventually emerge from bankruptcy, or they won't. If they do, miles are fine. If they don't, miles are probably toast, or will be picked up by some other program.

But nobody really expects United to just go away, Ansett-style. At least, not without much stronger warning signs than those seen thus far. They actually would have been turning pretty good profits (minus reorg expenses) by now were it not for the 10-ton weight of fuel costs, and while the incredibly long time spent in C11 is of concern, they will emerge in good shape if they emerge.

Reorganization is different than liquidation. An airline that's in reorg, like Delta certainly would be, continues business as usual with its customers. The main impacts are seen by their investors and employees.

just worry about chapeter 7
 

If they go into 11, they would likely operate as United does...even without an exit strategy.

Regardless of what happens, you will have lots and lots of time to use your miles. Bankruptcy is a long drawn out process even if it did eventually lead to liquidation, particularly for large airlines.

Welcome to Flyertalk.

The topic is touched upon quite extensively in the Delta Forum. As this really doesn't have anything to do with the latest frequent flyer program buzz, I'm going to close it here.

Regards,

Flipside