Southeast Airlines Shuts Down!!!

[Cruisechik]

Thanks Danny. I am happy to hear that. My DH travels business class and usually pays a hefty fare, so these ff are not exactly "free". I really hope it all works out for air tickets for our Hawaii cruise.

[ducklite]

I want to think that years ago my Eastern miles might have rolled into my CO account.

 

Assets, yes, as well as liabilities.

 

Anne

[dougp26364]

When a carrier ceases operations, generally other carriers under Federal Law must accept the tickets of the out of business carrier. I believe a small service fee of around $25 per ticket can be charged.

 

 

 

Anne

 

This law was temporary and put into effect after 9/11 to help people keep flying without feeling at risk of losing their ticket price if an airline went out of business. It is set to go out of effect soon unless concress renews it. If it does, there will be no protection offered other than through tickets purchased using a credit card.

 

EDIT: I finally got down to where MSTS posted that this law expired in Nov. without renewal. I knew it was coming up soon but the date must have gone under my radar. Now it's up to CC comapanies to cover you in the event an airline goes belly up.

[dougp26364]

I didn't book my tickets with Delta, even though they were cheaper, because I was worried that they might not be around in January.

 

Delta has made some recent moves that appear to be enough to hold off bankruptcy for several more months. I just purshased tickets to Barcelona with them for next October. United is a prime example of how long an airline can stay in chapter 11 while reorganizing. Americas West, and Continental have both been through this process as well and are still flying.

 

US Air was actually cheaper flight for us but......their unions are threatening to go out on strike if the courts void their contracts. If that happens, USAir I'm afraid USAir will change their bankruptcy filing and be sunk. With the state of the other ailrines right now, I'm not sure anyone could step up to the plate and buy their assests like AA did with TWA.

[dougp26364]

If one of the major airlines goes under, you will not be left hanging. Most of them have enough assets that they'd simply be taken over by another carrier. (This is what happened when TWA shut down - American got the aircraft and took over all the flights.)

 

TWA was purchased out of bankruptcy by AA. I'm not sure that any airline is in a position to take over a another major carrier such as USAir (or anyone even a small carrier). A couple of years ago, another small, regional carrier named Vanguard such down. They were based out of Kanas City, MO. Even though they were small, no carrier "took over" their planes. A few purchased some of their routes out of bankruptcy and Hooters purchased some of their assets as well. However, there was no TWA like assumption of their operations and travelers were left holding the bag to make arrangements on other airlines.

[MGoBlue2]

What about frequent flier tickets? We are planning to use our United FF miles for Hawaii next November. I can't book yet, we're just outside of the 330 days, but what happens with FF tickets if an airline goes out of business? Does anyone have any experience with this?

I'm in the same boat, I've got about 150k that I have to decide what to do with. I've been saving them for over two years trying to get enough for two business-class tickets to Australia & I think it will take me until summer to get enough. I'd love the Australia tickets, but I'd sure hate to get nothing for the miles.

[joni2001]

I got the call yesterday morning from my travel agent saying that Southeast had shut it doors. We were booked to fly to St. Pete in February for a cruise from Tampa. Luckily, we were able to get tickets on Delta to fly from our small airport in to Tampa. Now I just have to hope that Delta makes it till then....

 

Joni

 

02/05 Splendour of the Seas

[bUU]

When a carrier ceases operations, generally other carriers under Federal Law must accept the tickets of the out of business carrier.

Not any longer.

[bUU]

TWA was purchased out of bankruptcy by AA. I'm not sure that any airline is in a position to take over a another major carrier such as USAir (or anyone even a small carrier).

Not only that, but none of the other major airlines would want to acquire most of US Airways. Someone will want the Shuttle, but beyond that, US Airways is just a bunch of expensive assets. It simply isn't worth it this time for anyone to acquire US Airways outright.

[MGoBlue2]

Not only that, but none of the other major airlines would want to acquire most of US Airways. Someone will want the Shuttle, but beyond that, US Airways is just a bunch of expensive assets. It simply isn't worth it this time for anyone to acquire US Airways outright.

That's the nice thing about acquiring something out of bankruptcy, the assets are not nearly so expensive. The losers are not those purchasing but the creditors of the bankrupt operation. The best deal for both the creditors (at this point) and the purchasers could well be something like 10-20 cents on the dollar.

[raydon]

I heard this on the news yesterday @ 0530. Holding tickets to go to NY on Southeast for Xmas made me immediately put down my hair dryer and go to my computer. While all those folks holding tickets to get to NY for Xmas were still sleeping, I was able to book tickets to LGA and back to PBI for just 260.00 RT on Delta, a mere 70.00 pp more than I had paid on Southeast. Admittedly I have to go to LGA as opposed to 15 minutes from the kids, but at least we are going! I called Am Exp today and had the charge reversed on my card for the Southeast tickets purchased in June. There was no question since they are a charter. I was disappointed BUT I have used Southeast no less than 30 times in the last 2 years to get to Newburgh NY. I had a teminally ill family member and flew there often in 2002-2003. They were a great airline and their employees were wonderful. I was not surprised. I will say, they always had full or nearly full planes and remembered you from flight to flight.

Sorry to see them shut down!

[bUU]

However, acquiring the assets in a liquidation situation, as opposed to in a bankruptcy situation, means you don't have to take on the liabilities (such as existing airline tickets). Why take on debt you don't need to?

 

The best deal for the purchasers is to pay 10-20 cents on the dollar for the assets, and leave the liabilities as the court's problem.

[hdawson]

Good example is when ATA filed bankruptcy (chap 11) AirTran Airlines bought all 14 gates at Chicago's Midway that were ATA's, 19 landing/takeoff slots at Laguardia and 9 slots at Reagan National for 90 million. This will give AirTran a second hub in their expansion.

[Cruisechik]

I'm in the same boat, I've got about 150k that I have to decide what to do with. I've been saving them for over two years trying to get enough for two business-class tickets to Australia & I think it will take me until summer to get enough. I'd love the Australia tickets, but I'd sure hate to get nothing for the miles.

 

 

I don't know what to do about my FF miles - I would hate to lose them. I read that United is suppose to go to bankruptcy court on January 31, 2004. I can book two FF tickets next month and pay for the third ticket OR I can wait until March or April to have enough miles to book all three tickets FF. What to do, what to do........