ANA Tickets Purchased with Virgin Atlantic Miles - Risks in these Uncertain Times?

[knick1959]

Awhile back, before all of this virus stuff, my step-daughter asked if I could help her and her husband fly again to Japan. Their experience in coach the first time was costly AND uncomfortable. I was sure I could help, but they were not adventurous enough to create multiple options. We selected a single possibility and it's almost time to book (maybe it's time ... haven't checked the schedules this week). This for April 2021. If that becomes virus-impossible, so be it, but we can hope, yes?

The sweet spot seems to be pretty well-known. At least 2 different blogs discussed using Virgin Atlantic miles to book an ANA round trip in Biz for a very attractive price. So they saved up some UR, almost enough, and are prepared to purchase any additional VA miles necessary.

I watched a FrequentMiler podcast over the weekend. I NEVER watch these, but some AA reference caught my attention so I browsed through it. They briefly mentioned thinking about what to do with Virgin Atlantic miles if they should appear to be going under. This is a terrible thought! So, I am asking here for thoughts ...

If they go for tickets, it will be a pretty fast transaction. Find the flights, hold. Transfer UR and buy more miles to pay. Pay.

If this works out, they would have 2 business tickets on ANA and are all set. So what happens if the "issuing party" ... VA ... goes belly up after the purchase? Any opinions? Any chance they'd still be good to go, or are they SOL?? TIA.

 

[knick1959]

I really wasn't sure I'd get any kind of an answer. I mean, I did ask a question that nobody can really have a solid answer to ... we're all guessing during these times.

I did spent some time using The Google to find articles about VA's financial situation. It does sound bad, but Mr. Branson could solve the problem himself if he wanted to. I think. Whatever the case, there's not much to do other than wait and see. However, for some odd reason, I feel a little more comfortable with having my step daughter go ahead with the plan. By my estimate we still have 4 weeks before the schedule shows what she needs. Will watch the situation closely during this time.

 

[italdesign]

I am also nervously curious about the answer. From what I have read in various places, the consensus is that the partner doesn't get paid until the flight is taken, so if the paying party (VS) goes under before then, the partner knows it won't get paid and can refuse service. So pre-redeeming for future flights doesn't help much.

Will VS go under in a way that the miles become worthless? I have no idea. I wasn't knee deep into the hobby in previous crises. What I am doing though is not accumulating any more of these at-high-risk currencies, including Lifemiles. What I already have will stay there, but no more until things recover. So personally, I would save your UR for something safer such as major US-based transfer partners.