Airlines are on the brink of bankruptcy- what happens to your voucher, travel miles and airline credit card if they go belly up?

[MULTIZ321]

Airlines are on the brink of bankruptcy - what
happens to your voucher, travel miles and airline
credit card if they go belly up?

Airlines are on the brink of bankruptcy — what happens to your voucher, travel miles and airline credit card if they go belly up?

As some warn about the possibility of airline bankruptcies, consumers could face the loss of those canceled tickets.

www.marketwatch.com

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Richard

 

[Talent312]

So the message is that one should convert credits into tickets
asap, 'cuz they may keep flying, but jettison credits in the process.

 

[elaine]

we've got a lot of miles spread over 3 airlines-hoping they survive, was counting on them for retirement travel. But we've also used them up whenever we could, so if they go belly up, it was a good ride, just no more friends and family free trips. We took family of 6 to Europe 4X over the past 10 years all on FF miles. 15 years ago we flew 11 people to Hawaii for free--of course, we had to split up and take 4 different airlines to get the seats!
I'm taking cash refunds vs. 125% vouchers on airlines, cruises, etc.

 

[Jimster]

While it was predicted on the Today show that one of the major carriers would go belly up by the end of the year, the truth is the airlines are getting a massive bailout with the stimulus package. They are also laying off hundreds of thousands in late September if things don’t change. For the most part there will probably be no change for the foreseeable future. I find many more things to worry about than this hypothetical problem.

 

[am1]

Layoffs need to happen now. A waste to wait till September. Old planes should be scrapped. Leases should be cancelled when possible.

 

[Jimster]

The layoffs are protected by the stimulus package so the airline employees keep their jobs and paychecks. I am sure most of the employees don’t consider it a waste instead they prefer to eat and have a roof over their heads until September. Hopefully airline activity will pick up by then and allow some to continue to work.

 

[BagsArePacked]

Layoffs need to happen now. A waste to wait till September. Old planes should be scrapped. Leases should be cancelled when possible.

Anyone " laid off" is also losing medical coverage in the middle of a pandemic. Surely you can try to see the bigger picture for those that are in jeopardy of losing their livelihoods.


Sent from my SM-N975U using Tapatalk

 

[Jimster]

It also isn’t just an altruistic thing. During the 2008 recession the Germans did much better than most countries because despite the economic problems, they kept people employed thereby keeping people buying and out of foreclosure, etc. Therefore, they kept demand up, people spending and the rest of their economy moving.
If you make the kind of cuts suggested above, that will virtually insure a DEPRESSION which will hurt almost all of the economy and everyone in it. Those laid off people won’t buy from your hardware store, or your shoe store or anywhere else. This will lead to more people being fired and the snowball effect will occur. Despite the partisan divide in Congress, even they recognized the enormity of the problem and that is why the stimulus bill was passed to ensure payroll protection.

 

[CalGalTraveler]

For those of you with an abundance of United miles, here is a way to burn some miles and avoid cash outlay of $95 for 6,333 points for your United Credit card AF:

Redeem United Miles For 1.5¢ Towards Chase United Card Annual Fees - Doctor Of Credit

Chase & United are now allowing cardholders to redeem United miles towards the annual fee of Chase United cards. Miles are worth 1.5¢ each when using this option

www.doctorofcredit.com

(Of course the other option is to cancel your United card when AF is due and sign up next year for card again when you plan to fly United gaining sign-up bonus miles.)

 

[T_R_Oglodyte]

Living in Seattle, it's going to be interesting to see how this plays out in the local market.

Alaska, or course, is the dominant carrier, but Delta has been building Seattle as a hub and gateway to Asia. Alaska has traditionally been a profitable airline, and they can't abandon Seattle, or any other major west coast markets for that matter. But if Delta get slammed and needs to pare back operations, what do they do? Do they still try to maintain two west coast hubs? Do they continue building Seattle in the face of declining traffic (which almost certainly would mean scaling back SLC), or do they defer their Seattle plans and use SLC as their western hub? Of do they try to operate both of them at scaled back levels?

I don't think the last option is likely, as that would probably be the most inefficient option. If that's correct it will be interesting to see what they do. SEA is more strategic for service to Asia, and is intrinsically a bigger market that SLC. Plus their gate presence in SEA may better align with a COVID-19 travel environment. But SLC is a much better option as a hub to funnel passengers to other western US destinations - if you want to connect passengers to almost any location in CA, SLC is much better option than SEA.

 

[am1]

Yes people want to stay employed but should not be on the backs of shareholders. This is what emergency savings are for. As well as fighting for health care that it not tied to employment. It’s not my fight but hopefully people take it up going forward.