Frequent Flyer Miles vs. United Airlines Bankruptcy
||:: Late-Breaking News
(Posted: Dec 5, 2002)
With the rejection of a federal loan guarantee, United Airlines has been forced into bankruptcy court. Be that as it may, I'd like to pass along my professional opinion on the future and safety of your Mileage Plus miles.
Hundreds of frequent flyers have called asking advice on where to stash or trade their Mileage Plus miles, including whether to convert them to Hilton HHonors points or Starwood Preferred Guest points. I've got what I believe is a reasonable and sound answer to address the concerns regarding your miles and the millions of Mileage Plus miles that I personally own.
Bottomline -- an airline in Chapter 11 bankruptcy spends an average of 20-27 months in the bankruptcy proceedings. So, it's not a quick fix nor one that demands you to make any rash decisions. It is my personal and professional opinion (and practice) that United Mileage Plus miles are safe for you to earn and use right now and over the next year. I do not foresee any situation (short of a major war) that would curtail your enjoyment of Mileage Plus benefits and awards during the next year. Airlines have several times operated under Chapter 11 proceedings and continued to operate the airline and their frequent flyer program. It is really only recently that an airline in Chapter 11 ceased business and members lost all their awards, and that was National Airlines of Las Vegas. Still, National operated in Chapter 11 since 2000, almost two years. The point being there is plenty of time to look at the many options you have with Mileage Plus before deciding to get off the emotional roller coaster ride we've all been on.
In the days, weeks and months ahead, I'll update my thoughts on what you should do. But right here and now, do not make any rash decisions regarding your United Mileage Plus miles.
posted: Nov 29, 2011 at 6:56pm (MT)
What atage miles?bout AA Advan
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