Come fall, avid skier Albert Clawson is usually on the lookout for a discount package to his resort of choice: Sundance, Utah. But now he has more than snow conditions to fret over. Delta Air Lines, the carrier he normally flies to Salt Lake City, just filed for bankruptcy protection–and so did Northwest Airlines, the dominant airline at his closest airport, Detroit.
Clawson, an information technology manager in Farmington Hills, Mich., isn’t worried that one of the two airlines will stop flying. Still, he’s playing it safe. “If I see a ticket on a healthier airline, I’ll book it,” he says. “Even if it costs $50 more. I just feel better about it.”
With three of the nation’s six major airlines flying under bankruptcy protection, that’s a good bet, according to travel experts. Although they say there’s no need to avoid major carriers operating under Chapter 11–at least not for now–they quickly add that given a choice, they’d book on an airline flying in the black, like American or Continental, or a no-frills carrier like Southwest Airlines or JetBlue. They say your trip is less likely to be disrupted on a nonbankrupt airline.
If you’re looking to book tickets for fall or winter travel, here’s what you need to know about the restructuring carriers:
They’ll keep flying. The major bankrupt airlines are in no immediate danger of liquidation. “The airline is really just reorganizing,” says consumer advocate Ed Perkins. “It’s still flying.” No kidding–United has been flying bankrupt since December 2002. And the one smaller airline thought to be on the brink of bankruptcy and possibly liquidating–Independence Air–announced aggressive cuts in its routes last week to keep solvent. Still, if the economy takes a turn for the worse, oil prices soar yet again, or another hurricane strikes, the survival of the bankrupt airlines is by no means secure.
They’ll offer deals. Troubled carriers are known for aggressive sales–like Delta’s $138 round-trip fare from Orlando to Dallas, and Northwest’s Portland-to-Minneapolis $218 round trip.
Your itinerary might change. If you decide to save a few bucks by booking on a bankrupt airline, don’t be surprised if you get a call from your airline or travel agent telling you that you’ve been rescheduled. During reorganization, carriers cut routes and flights to regain profitability. Delta, for example, is reportedly cutting its domestic routes by as much as 20 percent. The fine print in an airline’s terms and conditions allows for a full refund if you don’t like the new flight–although you may need to remind the airline of this fact. Check the airline’s contract of carriage at its website–that’s the legal agreement between you and your airline–to make sure your carrier plays by the rules.
Your miles are probably safe, but don’ t hoard them. When Eastern, Pan Am, and TWA flew off into the sunset, other airlines took over their mileage programs. “Even though that would be the likely scenario now,” says Tim Winship, editor of FrequentFlier.com, “it is by no means certain.” Passengers have collected trillions of miles since the last round of airline disappearances. Winship wonders if any airline would assume that kind of liability. So you can’t lose if you use your miles sooner rather than later.
While there are risks to flying on a bankrupt carrier, there are also rewards. Last month, Leslie Friedman found herself on a Delta flight from Atlanta to Philadelphia. It was overbooked, and a gate agent asked for bumpees. Friedman, a college administrator from Media, Pa., volunteered–and got the royal treatment: a meal coupon and a $400 voucher, which she redeemed toward a flight to Cura�ao. Friedman, who’s flown on Delta before, says the airline’s staff was trying harder than in prebankruptcy days. “Delta was a pleasure to fly,” she says. “Actually, a lot nicer than flying on an airline that wasn’t bankrupt.”
Come fall, avid skier Albert Clawson is usually on the lookout for a discount package to his resort of choice: Sundance, Utah. But now he has more than snow conditions to fret over. Delta Air Lines, the carrier he normally flies to Salt Lake City, just filed for bankruptcy protection–and so did Northwest Airlines, the dominant airline at his closest airport, Detroit.
Clawson, an information technology manager in Farmington Hills, Mich., isn’t worried that one of the two airlines will stop flying. Still, he’s playing it safe. “If I see a ticket on a healthier airline, I’ll book it,” he says. “Even if it costs $50 more. I just feel better about it.”
With three of the nation’s six major airlines flying under bankruptcy protection, that’s a good bet, according to travel experts. Although they say there’s no need to avoid major carriers operating under Chapter 11–at least not for now–they quickly add that given a choice, they’d book on an airline flying in the black, like American or Continental, or a no-frills carrier like Southwest Airlines or JetBlue. They say your trip is less likely to be disrupted on a nonbankrupt airline.
If you’re looking to book tickets for fall or winter travel, here’s what you need to know about the restructuring carriers:
They’ll keep flying. The major bankrupt airlines are in no immediate danger of liquidation. “The airline is really just reorganizing,” says consumer advocate Ed Perkins. “It’s still flying.” No kidding–United has been flying bankrupt since December 2002. And the one smaller airline thought to be on the brink of bankruptcy and possibly liquidating–Independence Air–announced aggressive cuts in its routes last week to keep solvent. Still, if the economy takes a turn for the worse, oil prices soar yet again, or another hurricane strikes, the survival of the bankrupt airlines is by no means secure.
They’ll offer deals. Troubled carriers are known for aggressive sales–like Delta’s $138 round-trip fare from Orlando to Dallas, and Northwest’s Portland-to-Minneapolis $218 round trip.
Your itinerary might change. If you decide to save a few bucks by booking on a bankrupt airline, don’t be surprised if you get a call from your airline or travel agent telling you that you’ve been rescheduled. During reorganization, carriers cut routes and flights to regain profitability. Delta, for example, is reportedly cutting its domestic routes by as much as 20 percent. The fine print in an airline’s terms and conditions allows for a full refund if you don’t like the new flight–although you may need to remind the airline of this fact. Check the airline’s contract of carriage at its website–that’s the legal agreement between you and your airline–to make sure your carrier plays by the rules.
Your miles are probably safe, but don’ t hoard them. When Eastern, Pan Am, and TWA flew off into the sunset, other airlines took over their mileage programs. “Even though that would be the likely scenario now,” says Tim Winship, editor of FrequentFlier.com, “it is by no means certain.” Passengers have collected trillions of miles since the last round of airline disappearances. Winship wonders if any airline would assume that kind of liability. So you can’t lose if you use your miles sooner rather than later.
While there are risks to flying on a bankrupt carrier, there are also rewards. Last month, Leslie Friedman found herself on a Delta flight from Atlanta to Philadelphia. It was overbooked, and a gate agent asked for bumpees. Friedman, a college administrator from Media, Pa., volunteered–and got the royal treatment: a meal coupon and a $400 voucher, which she redeemed toward a flight to Cura�ao. Friedman, who’s flown on Delta before, says the airline’s staff was trying harder than in prebankruptcy days. “Delta was a pleasure to fly,” she says. “Actually, a lot nicer than flying on an airline that wasn’t bankrupt.”
Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.
Elliott is consumer advocate 
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