What if I already have a ticket and this happens?
 

I will be attending a wedding in Chicago next weekend. Leaving thursday and back on Sunday. Am I going to be a no-show bridesmaid if USAir goes belly up? Does anyone know how this bankruptcy thing works? Will the planes stop flying?


US Airways Pilots Offer Final Talks
By MICHELINE MAYNARD

Published: September 11, 2004



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he leadership of the pilots' union at US Airways voted late last night to hold last-ditch talks with the airline on its bid for wage and benefit cuts. The emergency move came as the company appeared headed for a Chapter 11 filing as early as tomorrow , people who had been briefed on the situation said yesterday.

Meanwhile, the federal loan board, which assisted US Airways, paving its way out of its last Chapter 11 filing, met in Washington to discuss the airline's plight.

If US Airways seeks bankruptcy protection, it would be the first airline to default on loan guarantees awarded by the Air Transportation Stabilization Board, which was created after the terrorist attacks on New York and Washington three years ago

Since the bankrupty is a probable "reorganizaton" rather than "liquidation" proceeding, flight service should remain uninterrupted, but you should keep an eye on your flight and schedule.

More than likely your OK. They will intially declare Chapter 11 wich means they operate normall but are not required to pay their debts. However if they cannot get financing to operate over the next couple of weeks we could see them go Chapter 7 which is liquidation of all assests. This wiill take 3-4 weeks minimum maybe 2-3 if the Govt calls their loan. But you should be Ok for next weekend.

Dave

PS An American Airlines Captain

I am going away next week and I called my credit card company to ask the same question and they said if it does go belly up they would credit with me. I knew nothing about this, but now I am going to see if I can chnage air-lines to be safe.

This is going back a hundred years, but I seem to remember when TWA or Continental went belly up the other airlines honored the tickets on a space available basis.

I have no idea why or how they would get paid and am probably wrong but am 90% sure that is what happened.

I just got an e-mail from US Airways because I am a dividend miles member. They have filed for Chap 11 bankruptcy but their flight schedules will continue unchanged and all tickets will be honored. So, it doesn't look like you have anything to worry about.