If an airline goes bust or insolvent, what happens to frequent flyer miles and reward tickets?
I have a good number of frequent flyer miles with Jet airways, which is running into financial troubles. This is getting me a little worried and I have the following questions about it:
I have used some miles to book a ticket with its partner airlines [ANA], so I feel even if Jet airways goes bankrupt my travel should not be impacted. Is that correct?
If Jet airways goes bankrupt then will I loose all my miles? To be on the safe side, if I book a ticket using miles, will the airline refund me in cash if it goes bankrupt?
Best Answer
Bankruptcy means that the company has run out of money. At that point, a list of the company's debts is drawn up and prioritized. Money from selling off the company's remaining assets is used to pay off those debts as far as is possible.
A ticket for future travel that you have paid for is a debt owed to you. If money is available, that will be refunded. However, mileage points are just an offer to sell a service to you in the future at a discount and they generally have no cash value. They disappear with the airline.
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Can flights booked with miles be refunded?
Typically, there's no way to get a full refund if you change your mind unless you buy an expensive nonrefundable ticket. But when you use points or miles to book an award ticket, you may have the option of a full refund if you decide not to travel for any reason.What happens to frequent flyer miles when someone dies?
According to the SkyMiles program terms and conditions, while SkyMiles never expire, your account will be closed in the case of death and the miles forfeited. \u201cUnder the SkyMiles Mileage Expiration policy, miles do not expire.What airline has the oldest frequent flyer program?
In 1979, Texas International Airlines created the first frequent-flyer program that used mileage tracking to give 'rewards' to its passengers, while in 1980 Western Airlines created its Travel Bank, which ultimately became part of Delta Air Lines' program upon their merger in 1987.Can Star Alliance group members redeem mileage from one airline for a flight using another airline?
Bottom lineYou can't transfer airline miles from one airline to another. It's also impossible to combine two different types of miles into one account. However, you can use an airline's miles to book an award seat on another airline within the same alliance.What Happens To Frequent Flyer Miles If An Airline Goes Bankrupt?
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