Executive Travel SkyGuide

ON BOARD WITH RANDY PETERSEN

KEEPING MILES SAFE AND MOVING THEM AROUND
September 2004
by Randy Petersen

Question:
I am a frequent flyer with US Airways. If it goes bankrupt, what can happen to my miles?

Answer:
This is a common question these days. First, let's remember US Airways has already been in and out of bankruptcy and nothing has happened to the miles yet.

But there's bankruptcy and then there is BANKRUPTCY. The Chapter 11 bankruptcy US Airways found itself in (and, which it may have to return to at some point if this airline industry doesn't find bottom and start to fully recover) is fairly harmless. I sincerely don't mean to trivialize it, but it often just involves a financial reorganization.

The other bankruptcy, to which you are likely referring, is Chapter 13. This type of bankruptcy calls for liquidation of the airline's assets in most cases. That one isn't so good and, in my opinion, if US Airways is forced into that type of situation, your miles will become fond—or maybe not so fond—memories.

But we're not there yet. US Airways has a TWA-like resilience. Over the recent years, the airline has been written off by every travel and financial expert, yet they're still hanging tough. There is some long-term danger to be aware of, but for the short term I think this program will be just fine.

Question:
I have 241,876 miles accumulated with Delta SkyMiles. I just joined American Airlines AAdvantage credit card and will now be using it exclusively. How can I transfer my Delta SkyMiles (all of them) to American Airlines AAdvantage, even if I have to pay a price?

Answer:
Delta SkyMiles is the only major program from which you can't transfer miles. All the other programs, from American AAdvantage to America West FlightFund, allow for some sort of way to move their miles around. We're not sure why this is, but that's just the way it is right now.

There's not even a price you can pay to make it happen. The only option available to you is to find a person who has American AAdvantage miles and agree to trade them. You would redeem Delta awards out in his name and he would redeem AAdvantage awards out in your name. But I don't recommend this approach in this situation.

What I do recommend is that you take a hard look at your reasoning for wanting to transfer the miles. Since it seems you might just be starting out with the AAdvantage program, there's really no urgency to have these miles converted—heck, a free flight on Delta is every bit as good as a free flight on American. And with all the partners Delta has, those SkyMiles might serve you very well, especially if you are considering using them to get to Europe.

I'd sit tight and see if an option doesn't arise that would allow you to transfer your Delta SkyMiles at a later date (things are always changing in this business) and, in the meantime, you should feel free to use your SkyMiles for free flights.

You can contact Randy Petersen at randy@insideflyer.com.