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What happens when airlines go bust?

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  • #1

    What happens when airlines go bust?

    I understand that OS is in a bit of a financial fix right now. In OS's context, (but could also be US/UA or any other Star Alliance carrier), what happens if you have a non-refundable but rebookable ticket with such an airline and it goes bust before you either start your itinerary or before you complete it?

    Would they try to accommodate your unused ticket/portion with another (alliance or non-alliance) partner carrier that flies to your final destination, or specifically in the case of OS/LX etc. to LH, or just leave you out to hang? Would elite status e.g. Star Gold equivalent help in this instance or doesn't matter the flier is still kneedeep in crap?
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  • #2
    Bust is bust. No one will honor the ticket of an airline that just went bancrupt. That was the concern for so many FFP members of UA and currently was with BD as all award miles would be gone including tickets already booked...

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    • #3
      Originally posted by SMK77 View Post
      Bust is bust. No one will honor the ticket of an airline that just went bancrupt. That was the concern for so many FFP members of UA and currently was with BD as all award miles would be gone including tickets already booked...
      Thanks. BD is tanking too? Hadn't realised that.

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      • #4
        Originally posted by SMK77 View Post
        Bust is bust. No one will honor the ticket of an airline that just went bancrupt. That was the concern for so many FFP members of UA and currently was with BD as all award miles would be gone including tickets already booked...
        Actually it is not that simple. It very much depends on the jurisdiction of the airline (bankruptcy rules vary enormously from country to country), the route, the circumstances of the failure and a rescue package (if any).

        It is impossible to generalise. If you assume that everything is gone (tickets no longer usable and unable to be refunded, miles uncredited for flights already taken won't be credited and FF scheme disappears) then any better treatment is a bonus. The worst case is if you are in the middle of a trip with that airline (or ticketed by it) when a failure occurs. Things get very messy immediately after an airline goes bung.
        ..

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        • #5
          With OS your miles should be safe as they are part of M&M so I think you would need LH to go bust as well before you lost your FFP.

          As Kiwi stated what would happen to the tickets would very much depend on the circumstances of the bankruptcy. However theworst case scenario is that you would loose the ticket.

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          • #6
            Originally posted by Danny Bhoy View Post
            Thanks. BD is tanking too? Hadn't realised that.
            Me neither....

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            • #7
              I think I read a Financial Times article about this debacle. Anyone know the latest?
              Le jour de Saint Eugène, en traversant la Calle Mayor...

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              • #8
                When Ansett went bust in 2001 in Australia, we lost all our remaining FF points, (life time) club memberships and award tickets that were not yet ticketed. Some Star Alliance members honoured ticketed award flights from Ansett but that was about it...some people lost 7 figure amounts of points

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