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- The Club
- Tried & Tested
- Plan & book
- Tried & Tested
If Virgin were to fall, then being partly owned by Delta 49% i heard last, i would have thought its assets be brought in towards their side and Skyteam.
Virgin and KLM /AF, recently announced equality of the Frequent flyer Schemes, so you could actually use VS miles for KLM or AF flights as it stands today.
If this situation continues, Virgin will be much less likely to be viable, or survive, being a more Leisure Based Airline these days.
I am not sure what we would have left, if we had miles in our FF accounts, presumably no rights, and lose them all?
In the event of bankruptcy or liquidation then shareholders are just an unsecured creditor, and last in line. Delta would have no more rights than Branson.
Usually FF points are in a separate company and airlines “buy” the points to give to the customer then “sell” the points back when a customer redeems. That is why you can use Flying Club points with other partners and vice versa, and you can convert Amex Rewards to Flying Club points.
shareholders are just an unsecured creditor,
I agree with everything you say, FaroFlyer, except the above part. Shareholders are NOT creditors, they are owners, and (assuming we are talking about ordinary shares rather than preference shares) have no right to any payment unless a dividend is declared (which can usually happen only if the payment is made from “distributable profits”) or the company is wound up. In the latter event, all creditors must be paid out before the shareholders receive, as owners of the business, their share of whatever is left.