What happens when airlines declare bankruptcy?
Mar 21, 2020, 5:09 pm
#16
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Join Date: Jul 1999
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I'm actually a bit concerned not only about FF miles, but how will this work if all these airlines are issuing credits to your account right now for future travel?
Sounds like in the past most of your mileage deposits have survived (who knows if that will happen in this weird time)....but what about trips you can't take with money sitting as a credit in your account? I have to imagine that type of thing would get lost during bankruptcy, no?
Sounds like in the past most of your mileage deposits have survived (who knows if that will happen in this weird time)....but what about trips you can't take with money sitting as a credit in your account? I have to imagine that type of thing would get lost during bankruptcy, no?
The "Other news" is that there is no realistic way in any liquidation scenario that any distribution would get that far. It comes after wages and employee benefit plans, and after all administrative expenses in the case (which includes all the unpaid expenses during any Chapter 11 that may end up converted to a 7 liquidation).
