It seems like the Stock market has seen better days and the Airlines are one business that is been severely hammered since their stock prices. Obviously, within the past two years airlines have witnessed quite a lot of turbulence using the high price of gas. Many industry analysts believe that there will soon be more high profile. Actually, whereas they are naming names, I’m not. Many airlines are now working together with credit card companies and their frequent flyer miles are in reality part of a schedule and a collaboration program. The credit card company might be left holding the bag in the event the airline files for bankruptcy. Meaning your frequent flyer miles or some of them might be moved to other airlines or all your frequent flyer miles will be deleted if this company goes out of business and there is absolutely no alliance arrangement.
The Federal Trade Commission has looked into the possibility that some retailers can go out of business whereas customers maintain their gift cards and prepaid cards. Some consumer groups are asking the FTC to consider this issue and need the retail firms place these funds out of the existing Frequent flyer points to an escrow accounts in the event the retailing business goes out of business.
What are the odds of leading retailers going out of business? Well now in the USA of America the country is in rather a financial pickle and several customers are cutting back on their purchases and retail firms are not producing their annual quotes and their stock is plummeting. This coupled with the fact that commercial credit is tight and also a few of those retail organizations are demonstrating quarterly declines; the possibility for bankruptcies from the retail industry is rather significant. Now the question remains, if the FTC is looking into this similar dilemma at the Airline Sector, will the FTC be shielding the customer who has saved up frequent flyer miles on their favourite airline.