Frequent flyer miles question

Hi-

I have a zillion frequent flyer miles on United. I'd been saving them
for a trip to Israel but I don't relish going these days so they just
keep piling up. If United folds, I don't want to lose them.

I know some people will say they won't fold and that may very well be
true. I don't know what will happen and don't want to debate that. But I
do have a question.

What happens to those miles if they go out of business? Some people have
said that the miles are huge assets to other airlines because if they
honor a defunct airlines' miles, they get instant loyalty from the
ex-United flyers. Others have said that's not true and people who have
those miles will just lose thema ndno one else will honor them.

What do you all think? Anyone know what has happened to those who had
frequent flyer miles on other defunct airlines?

Thanks-

Susan

"Susan Wachob" wrote in message
newseYVc.299155$%_6.256506@attbi_s01...
Hi-

I have a zillion frequent flyer miles on United. I'd been saving them
for a trip to Israel but I don't relish going these days so they just
keep piling up. If United folds, I don't want to lose them.

I know some people will say they won't fold and that may very well be
true. I don't know what will happen and don't want to debate that. But I
do have a question.

What happens to those miles if they go out of business? Some people have
said that the miles are huge assets to other airlines because if they
honor a defunct airlines' miles, they get instant loyalty from the
ex-United flyers.

It depends. They have no cash value, i.e. you do not become an usecured
creditor of the airline. When TWA went under, American purchased a number
of TWA assets, and also agreed to transfer both miles and status of TWA
frequent flyers to American's program (I was offered that option, but chose
to switch to Continental instead).

I can't imagine United going under (now US Air is another story). If it
does, it is possible that some other airline will match UA FFs miles and
status (status, certainly -- anyone will do that now -- miles are another
question, though). Most likely, though, you'll lose whatever miles you have
with an airline that goes bankrupt.


Others have said that's not true and people who have
those miles will just lose thema ndno one else will honor them.

What do you all think? Anyone know what has happened to those who had
frequent flyer miles on other defunct airlines?

Thanks-

Susan

Susan Wachob climbed onto an orange crate and
shouted:

What happens to those miles if they go out of business? Some people have
said that the miles are huge assets to other airlines because if they
honor a defunct airlines' miles, they get instant loyalty from the
ex-United flyers. Others have said that's not true and people who have
those miles will just lose thema ndno one else will honor them.

What do you all think? Anyone know what has happened to those who had
frequent flyer miles on other defunct airlines?

I'm in a similar situation as you (lots of unused UA miles) and
unfortunately the answer is "it depends."

My guess is that if UA is taken over by another airline our miles will
be absorbed into the acquirer's FF program -- as when Continental took
over Eastern and Delta took over PanAm. An article some time ago
claimed that Premiers and above are only 11% of UA's fliers but
produce nearly half of UA's revenue. It's hard to imagine that an
acquiring airline would risk alienating such customers.

On the other hand if UA is liquidated and sold off piecemeal the
prospects are much dimmer; e.g., Midway's FF miles became worthless
when it liquidated in the 1990's.



--
The bass player is like a good offensive line. The team sucks when you
are not on your game. When you're on your game, everyone congratulates
the quarterback, running back, and receivers. -- Dave in a.g.b.

Susan Wachob wrote in message news:DeYVc.299155$%_6.256506@attbi_s01...
Hi-

I have a zillion frequent flyer miles on United. I'd been saving them
for a trip to Israel but I don't relish going these days so they just
keep piling up. If United folds, I don't want to lose them.
Susan,

If you don't fancy Israel, why not use them to come over to the UK ?

Regards

Nick

Susan Wachob wrote in message news:DeYVc.299155$%_6.256506@attbi_s01...
Hi-

I have a zillion frequent flyer miles on United. I'd been saving them
for a trip to Israel but I don't relish going these days so they just
keep piling up. If United folds, I don't want to lose them.
Susan,

If you don't fancy Israel, why not use them to come over to the UK ?

Regards

Nick

Been to England, Ireland, Scotland a number of times. Some of my
favorite parts of the world and I'll be back many more times, but.. I
want to go to Israel and not get blown up too.

Oh well- Someday!

Susan

Nick Fisher wrote:
Susan Wachob wrote in message news:DeYVc.299155$%_6.256506@attbi_s01...

Hi-

I have a zillion frequent flyer miles on United. I'd been saving them
for a trip to Israel but I don't relish going these days so they just
keep piling up. If United folds, I don't want to lose them.

Susan,

If you don't fancy Israel, why not use them to come over to the UK ?

Regards

Nick