Avianca files for Bankruptcy Protection – Are LifeMiles Safe?
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The second largest Latin American airline (after LATAM), Avianca, has just filed for Chapter 11. What does this mean to the Star Alliance airline and those who have LifeMiles?
The Bankruptcy Protection
This shouldn’t come as a surprise as there were hints that the airline has been in trouble.With the ongoing pandemic, and their passengers completely grounded, the airline chose to enter the Chapter 11 bankruptcy protection process.
Also, the collapse of Avianca Brasil (who leased Avianca’s name) didn’t do Avianca any favors.
Avianca will go through a re-organization process, so it is not going to shut down. Although the airline is currently grounded due to COVID-19.
What about my LifeMiles?
As long as the airline remains operational, your LifeMiles should be safe, and should retain value as well. LifeMiles is a separate program from Avainca, as the airline sold 30% of LifeMiles back in 2015.
LifeMiles is a great currency in the Star Alliance program, but I would say now is not the best time to load up on LifeMiles, or any airline miles, for that matter. There is simply too much uncertainty on future travel.