How will the American Airlines Bankruptcy impact your Frequent Flyer Miles?
As you may have heard American Airlines has finally initiated a long overdue Ch. 11 bankruptcy. With $4 billion in cash and around $30 billion in debt most experts think they were overdue for reorganization through bankruptcy proceedings. Unlike the majority of the other large U.S. legacy airlines American was the only one, besides Southwest, who had not gone through bankruptcy.
So, how will the American Airlines Bankruptcy affect your miles? Well, luckily, not much. American wants to make sure it retains its customers through the fat trimming. By streamlining their business and keeping their current customers, AA hopes to increase profits. According to an e-mail sent to customers by Maya Leibman, President of AAdvantage loyalty program,
“We want to assure you that your AAdvantage miles are secure. The AAdvantage miles that you’ve earned are yours and will stay yours, subject to usual policies, until you choose to redeem them for a great award with us. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million MilerSM program is secure and remains intact.”
If this is true, AAdvantage memebers should have nothing to worry about. She goes on to say,
”American is honoring all tickets and reservations as usual, and making normal refunds and exchanges. And, we intend to maintain a strong presence in domestic and international markets.”
Until further notice, rest assured that your AAdvantage miles are safe and the program should stay the same. Also, their flight routes don’t sound like they’ll be significantly reduced so holiday flying shouldn’t be affected either.
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