AMERICAN AIRLINES FILES FOR BANCRUPTCY – now what????

American Airlines files for Chapter 11 bankruptcy. What this means …….

If you have a flight already booked with American, there should be no flight disruptions for the immediate future. There may be some minor changes like different airline or modified route, or restructured mileage program. It should be business as usual until they emerge from Chapter 11.

In the event they go into Chapter 7 (liquidation), how do you get a refund?

If you used a credit card, call your cc company. According to the terms of the Fair Credit Billing Act (FCBA), you should get your money back. Otherwise, you will have to wait a long, long time after the court liquidates their assets and you may not even get anything back.

Worried about losing your frequent flyer miles? I wouldn’t worry too much.

What will happen is that they will probably be forced to re-organize, but if their problems persist and become insurmountable, they will have to file for Chapter 7 bankruptcy, at which point the AAdvantage program will more than likely be sold to another airline.

Safe Journeys!
Emily & Jim