3 Responses

  1. Oliver
    Oliver at |

    They are directing people to their credit card issuers for refunds? That seems rather fishy — did their accountants "stand down" too? Is that a euphemism for "we fired everyone"?

  2. Seth
    Seth at |

    It is simply the way the system works in the USA with air travel and bankruptcy. The CC companies hold back some cash from the supplier in order to hedge against this type of scenario and they are also much more readily able to get in line as a creditor for the missing cash. A consumer has no chance as an unsecured creditor.

    It is things like this that make buying plane tickets with a CC infinitely smarter than any other means of purchase, including Debit cards, Bill Me Later, PayPal or the like.

  3. Oliver
    Oliver at |

    Oh, I know. But they didn't say anything about bankruptcy. They called it "stand-down" and "reorganizing their operations." Making it sound like they are taking a little time-out to rethink their plan, not that they're going to file Ch11 (or Ch7, I suspect it will ultimately be).

    And yes, I'd never buy travel with anything other than a CC… I have never used a debit card for anything, in fact. Just don't see why it would be to my advantage.