2004-09-14
How long will it be safe to book tickets on US Airways?
Analyst Ray Neidl of Calyon Securities says that the carrier has to get new labor agreements with its workers within three to six months or it will not be able to emerge from bankruptcy protection. At that point, the company would likely liquidate, which would affect service.
Liquidation threat means tickets should be bought with credit cards and miles should be protected: Those US Air customers with large balances of miles in their frequent flyer accounts might want to take steps to protect themselves long term, said Randy Petersen, editor and president of Insider Flyer, an independent publication for members of frequent flyer clubs. Petersen said it's possible to transfer US Air miles to some of its partners' frequent flyer clubs. But there is a significant penalty for doing so, and he said it's probably too soon to make such a drastic move.
Instead, he suggests that people with large balances book a trip nine to 11 months out on a US Air partner carrier such as United, Lufthansa, Air Canada or other members of the Star Alliance. "If US Airways survives, as that date gets closer, you can pay your $40 and put the miles back in your US Airways account," said Petersen. "If they don't make it, you've got something you can use that far out. It might be better than having nothing at all."
Analyst Ray Neidl of Calyon Securities says that the carrier has to get new labor agreements with its workers within three to six months or it will not be able to emerge from bankruptcy protection. At that point, the company would likely liquidate, which would affect service.
Liquidation threat means tickets should be bought with credit cards and miles should be protected: Those US Air customers with large balances of miles in their frequent flyer accounts might want to take steps to protect themselves long term, said Randy Petersen, editor and president of Insider Flyer, an independent publication for members of frequent flyer clubs. Petersen said it's possible to transfer US Air miles to some of its partners' frequent flyer clubs. But there is a significant penalty for doing so, and he said it's probably too soon to make such a drastic move.
Instead, he suggests that people with large balances book a trip nine to 11 months out on a US Air partner carrier such as United, Lufthansa, Air Canada or other members of the Star Alliance. "If US Airways survives, as that date gets closer, you can pay your $40 and put the miles back in your US Airways account," said Petersen. "If they don't make it, you've got something you can use that far out. It might be better than having nothing at all."
