Airline grounded, miles gone

Q: I recently redeemed 100,000 award points that I earned through my Bank of America Visa credit card for a time-share vacation in Puerto Vallarta, Mexico. We used the points to pay for two tickets on Aero California, a low-cost Mexican airline.

Just after I made the reservation, Mexican aviation officials suspended operations at Aero California, after determining that the carrier failed to meet safety standards. I would be terrified to put my life in its hands, and am now trying to cancel my tickets.

I asked Bank of America to refund my points, but it refuses. The airline insists it will fly, but it keeps changing the date when it will be cleared for takeoff again. We’ve already lost $120 for our canceled time share. Now we are about to lose the rest. Can you save our vacation?

– Rachel Cohen-Mazouz, Beverly Hills, Calif.

A: When an airline stops flying, you should be able to get a refund for your tickets. But can you also recover your frequent-flier miles?

Airlines regard award tickets differently than they do regular tickets. Strictly speaking, a seat that is paid for with miles has no cash value — it’s basically a seat that would have gone unused, according to the airline. If these were real airline miles that you tried to cash in, you’d probably be out of luck. If the airline isn’t flying, you’re not going on vacation.

But these aren’t real airline miles. They are loyalty points given through your bank. Even though these rewards are often referred to as “miles,” they work in a fundamentally different way. A credit card company will typically apply the points to an airline ticket, which it purchases on your behalf, acting as your travel agent.

In other words, these are real tickets with a cash value.

So it isn’t up to Aero California to fix your problem; it’s up to your bank. And Bank of America’s terms and conditions say the airline tickets are nonrefundable and non-changeable. There are a few exceptions. When you called to request a refund, a customer service representative told you that your points could be credited back to you in a case of serious illness or death. But I guess that rule doesn’t apply to the airline.

When I contacted the bank on your behalf, it told me that its rules are flexible. Bank of America does its best to ensure the airline it picks is flight-worthy. If, for some reason, the carrier is grounded, then it will try to rebook your flight on another airline.

In your case, Aero California never officially canceled your flight (in fact, the airline recently resumed operations after being grounded for several weeks). Even so, a Bank of America spokeswoman has promised to purchase new tickets for you when you’re ready to take your next vacation, and the bank has refunded all your points.

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.

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