Reward ticket refund when airline collapses?

7 replies

S

Member since 13 Sep 2013

Total posts 119

Hi all,

I have some J tickets on Hong Kong Airlines booked with Velocity points at the end of the year. HKA keeps teetering on the edge of falling over, so I wonder what would happen if the airline went bust?

As my ticket was booked with VA points, do you think there's chance of getting my points back?

dimi

Qantas - Qantas Frequent Flyer

Member since 13 Jul 2012

Total posts 154

You can always cancel any reward ticket up to 24 hours prior to the intended departure at a charge of either 7500 points or AU$60 per ticket, as per standard Velocity cancellation policy.

So the loss of 60 bucks or 7500 points is the worst case scenario.

If the airline your ticket is booked with goes bust, you will very likely be able to claim a waiver of the cancellation charge, but that will lilkely involve a call/negotiation with customer service.

Last editedby dimi at Aug 30, 2019, 09:53 PM.

patrickk

Qantas

Member since 19 Apr 2012

Total posts 737

If the airline went bust then the reward ticket holders would be well down the list of creditors so I would take the refund now for $60 and do something else with the points

dimi

Qantas - Qantas Frequent Flyer

Member since 13 Jul 2012

Total posts 154

Originally Posted by patrickk

If the airline went bust then the reward ticket holders would be well down the list of creditors so I would take the refund now for $60 and do something else with the points

We are not talking about the bankruptcy of Virgin, or Velocity programme. It is about a partner airline.

Tickets sold by Velocity are not supposed to turn into dust as a result of the bankruptcy of the carrier that the ticket is booked with.


Last editedby dimi at Sep 01, 2019, 10:35 AM.

patrickk

Qantas

Member since 19 Apr 2012

Total posts 737

This means that Velocity would be the creditor to a HK company. I suspect it would be also well down the list of creditors and so while the points may not turn to dust their value may end up not being much short of it though...think Ansett a couple of decades back.

dimi

Qantas - Qantas Frequent Flyer

Member since 13 Jul 2012

Total posts 154

Totally agree that Velocity will be at the bottom of the list.

But that does not mean that Velocity will be relieved from its obligations to Velocity's customers.

Velocity will have to refund the ticket and deal with the loss.

brinkers

Qantas - Qantas Frequent Flyer

Member since 16 Jun 2011

Total posts 233

Originally Posted by dimi

Totally agree that Velocity will be at the bottom of the list.

But that does not mean that Velocity will be relieved from its obligations to Velocity's customers.

Velocity will have to refund the ticket and deal with the loss.

I am not sure that Velocity would be on the hook for much anyway. The one thing that has never been clear to me is just when partners pay each other for tickets - but it seems to be quite close to when the flight actually takes place. I don't think they pay up immediately.

S

Member since 13 Sep 2013

Total posts 119

Thanks for the advice :)

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