Virgin Atlantic has filed for Chapter 15 bankruptcy in New York. Chapter 15 bankruptcy allows a representative of a corporate bankruptcy proceeding outside the U.S. to obtain access to the United States courts. Virgin Atlantic is the latest of a string of airlines to file for bankruptcy, including AeroMexico, LATAM, Avianca. You can find out what happens to points/miles in the event of filing for bankruptcy here. Virgin Atlantic is 49% owned by Delta Airlines and Delta CEO Ed Bastian has previously stated that Delta will not provide Virgin Atlantic with any cash injections.
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I was familiar with filing bankruptcy under chapters 7, 9, 11, 12 and 13. This is the first I’ve heard of chapter 15. Learned something today. Thanks
If I had 240,000 points saved and was planning on doing a japan honey moon trip later next year do I book now or is it too late?
240k at VS? if you book it and the airline goes under, you won’t fly. if you don’t book it and the airline goes under you won’t have your points
Glad I was able to use the points toward ANA F class ticket. Had to add 17000 miles from Amex. Now I can close this thing before AF hits. There’s an anniversary bonus points but don’t think it’s worth $90 AF.
Cheers, mate. You won at credit cards.
the question is when are you flying?
Was fortunate enough to travel to Japan in January.
Let. Them. Fail.
What’s to stop all other airlines from doing the same?
Wait, so you’re saying I shouldn’t have invested my time, money, effort, and “loyalty” into a for-profit corporation’s pseudo-currency?
Guess this means our pending refund of award booking fees won’t come through
😢
So for those of us like me sitting on VA miles, the options are book flights in the distant future with the miles and hope for the best or transfer to Hilton. Or, obviously, just wait it out. Is that it?
Another airline card to close. I lost $90 for 60,000 useless miles. I will product change to boa cash Card.
Any ideas how to make use of VA miles?
Aren’t they just reorganizing, not literally ceasing operations and selling aircraft?
Exactly. I am not sure why everyone is panicking – this is in conjunction with a restructuring deal being worked out on the other side of the pond. https://www.smh.com.au/business/companies/virgin-atlantic-warns-it-is-running-out-of-cash-as-it-seeks-rescue-deal-approval-20200805-p55ilf.html
Worry when they start talking liquidation.
You could always transfer them to Hilton…
convert to HIlton or IHG
I’ve gotten 1 of 2 refunds that they’ve owed me since March in the last few weeks. They sent a receipt that the second one was coming in 10-14 days in mid-July. Not holding my breathe.
In an abundance of caution, I moved all my 300k plus VA points to Hilton in May. Took them forever for that too but eventually they transferred after 4-5 weeks.
Thankfully Chap 15 is asset protection of VS and not equivalent of 7 or liquidation.
I cancelled our trip in Delta One suites to SEA-Shanghai using VS miles back mid-April (Travel was booked for end of Aug.) Then after miles were re-deposited called and moved them over to HH toward end of April.
It just wasn’t in the cards for us to try to rebuild and replan 5 weeks PDX-PVG-HKG-NAN-AKL-ZQN-CHC-SYD-MEB-YVY-PDX along with lodging, car rentals, siteseeing etc..
DW support person to cover her PTO took a new job first week of April and then WFH and a COVID hiring freeze….was all she wrote.
Thankful, but a little sad about the trip.
Umm, what’s to stop Hilton from declaring bankruptcy?
The name. Hilton is a franchiser. It’s like asking if McDonald’s will go bankrupt.
I went into a brief panic because I recently booked virgin australia tix with my DL miles, but a quick search reveals they are just codeshare partners and not owned by the same entity. I think virgin australia will be fine for now although it seems they are looking at cost cutting measures as well.
People with virgin miles should consider booking speculative refundable flights in the distant future and hoping for some sort of favorable agreement down the road. Most airlines who file don’t lose their customer’s miles (so far), but I don’t know that I’d play that gamble with 2020.
Virgin Australia already declared bankruptcy months ago. They’re planning on being a domestic only airline the last I read, but maybe that’s changed.