US Airways Miles

Hi Joel,

I have about 55,000 miles in US Airways Dividend Miles Program. Considering that USAir may file bankruptcy again, how can I protect these miles? I understand that USAir is part of the StarAlliance. Does this mean that these miles will still be valid on the other participating airlines, even if USAir won't honor them? Is there any other way that I can transfer these miles to a safer location?

I'm concerned that if USAir files Chapter 7, I'll lose the miles totally.

Thanks!
Kristina

Hi Kristina,

There is reason for concern. You probably should be safe for the next six months; thereafter it is difficult to predict the outcome of the airline’s financial woes.

If US Airways is forced into liquidation, there are no guarantees that a Star Alliance partner or any other airline will accept the miles and/or tickets. A few years back when TWA was liquidated American Airlines honored TWA miles. However, the airline industry has changed a lot since then.

I recommend using your miles for upgrades or tickets and keep a close eye for announcements made by the airline. Upgrades are probably a better deal since their currently offering fire-sale fares.

All the best,
Joel