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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:

  1. 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?

  2. 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?

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  • If you're looking for a more detailed answer you can ask over on Law. Bottom line: you'll have to queue up along with every other creditor of the insolvent company to get your share at the end of the insolvency process (which likely takes multiple years for a large-ish company) if any assets are left to distribute after higher priority creditors (usually employees, maybe contractors or banks) received theirs.
    – David Foerster
    Commented Aug 12, 2018 at 8:55
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    @DavidFoerster I think that comment is too general. Disposing of the airline miles question (we know they vanish if the scheme was owned by the airline), interline tickets are a different matter. Whether a ticket issued on the paper of a carrier entering bankruptcy remains valid for travel on another airline is definitely a travel question.
    – Calchas
    Commented Aug 13, 2018 at 2:21

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If the airline is a part of an alliance (as in your first question), there might be some recompense in that other alliance partners might still recognise the points. But that's up to them and their individual terms with you in the ticket.

As far as the points themselves - you'll likely lose them. A prime local example in Australia was Ansett, which went under in 2001, and even years later people were wringing their hands over their lost points.

Similarly to a coffee shop - many give you a rewards card where the 10th coffee is free. If they went under - no free coffee. This is just on a bigger scale.

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  • Thanks Mark. I have already booked flight with partner airline [ANA], confirmed ticket with PNR. Do you think it can be cancelled if Jet airways shuts? My travel is in November and if air tickets get cancelled at last moment then it will trouble for my trip.
    – Travelling Juggernaut
    Commented Aug 12, 2018 at 8:09
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    @Lokesh: It may be worth it to ask a focused question on that particular situation: Flight on airline A booked using alliance partner B's rewards points; B goes under before the flight date; would A still honor the ticket?
    – hmakholm left over Monica
    Commented Aug 12, 2018 at 9:00
  • Thanks. Posted a new query : travel.stackexchange.com/questions/120428/…
    – Travelling Juggernaut
    Commented Aug 12, 2018 at 12:06
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    Airlines (even those in an alliance) don't "recognise points" from another airline, only bookings.
    – Doc
    Commented Aug 12, 2018 at 19:11
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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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    That's not the question though. The points have been used to purchase a ticket on a different airline, one that isn't bankrupt. Not a codeshare ticket, either. Does that ticket have any history attached to those miles?
    – James Moore
    Commented Aug 12, 2018 at 23:56
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    @JamesMoore The ticket will be issued on the stock of the bankrupt carrier, so if the operating carrier withdraws from the interline agreement, the ticket will cease to be redeemable for travel on the booked carrier, and inspection of the fare construction box will show it is a non-cash ticket. I’m not sure that automatically means the ticket is voided though.
    – Calchas
    Commented Aug 13, 2018 at 2:14
  • @JamesMoore Among other things, the question is "If Jet airways goes bankrupt then will I [lose] all my miles?"
    – David Richerby
    Commented Aug 13, 2018 at 8:15

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