If United goes Bankrupt- Will we get money back?

[Incharge]

We have 3 tickets on United Airlines for September 2003. If United goes bankrupt, (which it is very likely) do they re-route you to another airline, or are you just out of your money? When I called United, they can only tell you that "the tickets are good now". He said that this is all they are able to tell you. Anyone else going United and know of any info on this? Had I known, I would have waited to book my airline ticket closer to the date, but I was trying to get a good rate. Thanks.

 

[mcnuss]

First of all, I believe United is already bankrupt, but they are trying to re-organize rather than liquidate.

Generally speaking, when an airline liquidates, you are SOL with your tickets. However, sometimes other carriers will honor those tickets, especially if the travelers are stranded. That being said, you cannot assume you will be rescued. If you paid with a credit card, you may have some protection, so call your card carrier and ask them. In addition, if you bought trip insurance, you may be covered there, as well. Please read through that contract or call the agent who sold it to you.

I hope this helps.

 

[mmouse37]

We had this happen with another airline. Thankfully we paid with a credit card. We heard on the news that the airline we booked with with was going under that day and immediately called my CC company and put in a grievance. Apparently these airlines do have some insurance or something to cover some payments back to customers, but it is on a first-come, first-serve basis. In a few weeks we had our CC refunded but heard of other people who did not. So call your CC now and see what action you can take. I actually do not know if the refund came from the protection I had with my CC or if it was from the airline.

MJ

 

[jgalecpa]

Actually, until next year (2004) there is a rule that any airline must honor the tickets of a defunct airline for a fee of no more than $25.

This is from the washington Post travel Section for 3/30/03:

"Until Feb. 14, 2004, airlines must offer passage to any traveler stiffed by a bankrupt airline, on a space-available basis. They may charge no more than $25 for the change. "

Read the full article at:

http://www.washingtonpost.com/wp-dyn/articles/A42854-2003Mar28.html

To one who was with DW on our honeymoon and our airline (anyone remember "World Airways"?) went backrupt while we were in the highlands of Scotland, I understand your angst.

PS, Pan Am honored our tickets then no problem.

 

[Incharge]

Thanks so much for responding. I will call my Credit Card Company in the morning, and my travel insurance company.
jgalecpa,
The Post article was what scared me in the first place. Even though United has filed for bankrupcy, apparently it takes some time to complete. One of the analysts speaking in the Post stated that he felt there was only a 15 percent chance that they would actually "go under" in the next 6 months. The 2nd analyst said he would only buy out 60 days from now. If the tickets will be honored, it should not be a need to worry, but I am scared to hold on to these tickets in "hope" that I can get on another flight, because that statement said ....

"Until Feb. 2004, airlines must offer passage to any traveler stiffed by a bankrupt airline,on a space available basis."
I wouldn't be too worried if it was just myself, but I don't want my grandson and daughter to be affected by this mess. At least I have time to work on this, Thank God.I will call tomorrow and let everyone know what the outcome will be. Thanks again.

 

[MarkRG]

I'd also offer a piece of advice - recheck your airline reservations often!

We're on American for the cruise specified below, and we were seated together. Not anymore, and with no notice of the change. They bumped us to a different flight and on the way down, we're all on aisle seats, and on the way back, we're all over the plane. We're hoping at least some seats open up before the date so at least the 2 couples can sit together, if not all 4 of us.

 

[Incharge]

I was told this morning by a United Rep that they are in a Chapter 11 status, which according to her, is not closing down the company, but rather, that they are downsizing the company. I am not a lawyer, so I don't know. What it sounds like is a "wait-and-see" situation. If they do fold completely, I am SOL, like mcmuss stated, because I have non-refundable tickets. No one will make a move to refund anything because the company has not gone under yet. I don't think I can do this Stand-by thing, because that is just too crazy. Luckily we are going out the night before the cruise. I think I would really be a basket case if it were the same day. Heck, if all else fails, I will jump my "happy buns" in my car and drive all night to Fla if I have to. I won't miss this cruise, oh no!!! Wish us luck on this one. I will be praying hard for a good outcome.