Virgin Atlantic Flying Club

Back to Forum
Viewing 3 posts - 61 through 63 (of 63 total)

  • FaroFlyer

    [postquote quote=999652][/postquote]

    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.


    [quote quote=999784]shareholders are just an unsecured creditor,[/quote]

    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.

    2 users thanked author for this post.


    Ian, you are correct. I was over simplifying:-)

Viewing 3 posts - 61 through 63 (of 63 total)
You must be logged in to reply to this topic.
Business Traveller UK September 2023 edition
Business Traveller UK September 2023 edition
Be up-to-date
Magazine Subscription
To see our latest subscription offers for Business Traveller editions worldwide, click on the Subscribe & Save link below