Airline Bankrupsy

[craig]

We are flying the WDW in Nov. through Continental. The rumors that have been going around is that the airlines are losing money fast and if certain airlines cannot get federal help they may declare bankrupsy. Continental is one of those airlines.

Does anyone know what would happen to our flight? Would it be absorbed by another airline? Would another airline honor it? Is there anything we could do to assure we have a way down? (God willing)

 

[esulerzy]

I have the same problem but with US Airways. I hear they are particularly vunerable at this time (92 percent debt ratio!). I have tickets for a December trip - I think these will be okay since I have Disney's Golf Getaway Package and the airline tickets were part of the package (I'm sure Disney will reschedule me with another airline).

It's my first ever solo trip in March '02 that I'm worried about. I used frequent flyer miles for that ticket and I'm not sure what would happen if US Airways goes belly-up. Do I lose that ticket? If another airline absorbs US Airways, will they honor that "free" ticket?

So many questions, so little answers! If anyone has some reassurring words, please let us know. Thanks, Ellen

 

[BWVDenise]

I came here with the same questions, but I don't know if there are any answers yet. I have airfare for 5 in November. I wonder if I will lose that money and have to drive.

 

[apagano]

1) The airlines are doing everything they can to avoid going bankrupt. All the majors, including Continental, have slashed flights and payroll by 20%.

2) The federal government is working on a bailout plan for the airlines because the ripple effects of several airlines going bankrupt at one time would destroy the economy.

3) "Bankrupt" does not necessarily mean "out of business". Most companies declare bankruptcy so that they can stay in business while they reorganize their debts. For instance, here in Cleveland the LTV Steel corp. has gone bankrupt not once, but TWICE, and they are still in business. They just got much smaller.