I'm Going To Talk Good About American Express

[FC]

Believe it or not, I'm going to talk good about a credit card- American Express. I had $2000 worth of ATA tickets for my girls, and since it went bankrupt, I called Amer. Express. They gave me a refund. Read what they could have done.

 

Stranded by ATA? Your few options will cost you

Refunds unlikely, reward miles gone and baggage at risk

By Jennifer Waters, MarketWatch

Last update: 7:53 p.m. EDT April 3, 2008Print E-mail RSS Disable Live Quotes

CHICAGO (MarketWatch) -- ATA Airlines passengers who found themselves stranded Thursday from Chicago to Hawaii to Cancun must scramble to find new transportation and could be left with huge holes in their pockets.

ATA, once the 10th largest airline in the U.S., filed for Chapter 11 bankruptcy and immediately shut down operations. Many passengers didn't find out until they arrived at airports early on Thursday. See related story.

Apologetic and regretful, the Indianapolis-based airline nevertheless left thousands of passengers -- many traveling for vacations -- with little recourse for refunds, rewards or lost baggage.

 

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"We deeply regret the disruption and hardship caused by the sudden shutdown of ATA, an outcome we and our employees had worked very hard and made many sacrifices to avoid," Doug Yakola, chief operating officer, said in a press release. In the frequently-asked-questions section of its Web site, ATA used "apologize" twice and "regret" eight times in 17 questions.

A handful of carriers -- Southwest Airlines, Northwest Airlines, Delta Airlines and US Airways, for example -- immediately stepped up to help rescue abandoned passengers and fulfill travel plans. But the requirements to get on a new flight are spotty and mostly dependent on standby status, which could be difficult considering so many domestic flights have been fully booked and, in many cases, overbooked in recent months.

Even travelers insurance might not be helpful.

ATA said that passengers, for the most part, will not be reimbursed for unused or partially used tickets. If they paid for their tickets in cash or by check, that money is now being frozen as an asset in ATA's bankruptcy proceedings. Consumers may be able to get a full or partial refund by submitting a claim to the bankruptcy court, but ATA warns that a filing does not guarantee a refund.

"If a refund is made, it may not be for the full amount of the claim and the refund process may take a long time," the company said.

Credit-card relief

Credit-card companies may reimburse passengers for unused tickets, but that's based on the issuing company and how quickly a claim was filed, according to Ben Woolsey, director of marketing and consumer research for Creditcards.com.

Under the Fair Credit Billing Act, consumers are eligible for refunds from their credit-card companies if there's a dispute about the transaction, such as the services were not delivered.

Even then, there are no guarantees, particularly if a trip was planned months ago, charged immediately to the credit card and paid for ahead of travel.

"It becomes more difficult to dispute a transaction if you've already paid the bill," Woolsey said. "Up until then, it's the credit-card company's money on the line and they're very aggressive about getting it back. When you've already paid the bill, it's your money on the line and the federal laws don't protect you anymore."

Claims for loss, damaged or pilfered baggage also are by the wayside, though ATA suggests consumers send a copy of the claim with a completed "proof of claim" to the bankruptcy court. Again, there are no guarantees and the process could be lengthy.

Any vouchers, ticket offers or credit for future travel on ATA have been cancelled as have all accumulated awards points.

"The rewards are dead in the water," said Terry Trippler, a Minneapolis-based airline expert. "But it doesn't hurt to approach a competing airline and ask if there's anything they can do to move them over." Another airline just might agree if its wants the business enough.

As for more immediate help from other airlines, ATA put them all on notice before they alerted their passengers. "ATA is hopeful that other airlines will be able to provide assistance to ATA passengers and, in fact, ATA has reached out to all the major airlines serving its destinations to ask for such assistance," spokeswoman Kimberly Kriger said in an email.

As for those passengers with travel insurance, Kriger said refunds "would probably depend on what the insurance policy says." Not all policies cover bankruptcies.

Competitors step up

Southwest, which was in a partnership with ATA, said it will refund or honor any tickets it issued to its own customers who booked on ATA flights. It is contacting all of them through emails. However, ATA customers who were booked on Southwest flights must contact Southwest for help.

"We're allowing their passengers to travel on standby," said spokeswoman Brandy King. "We're doing what we can to accommodate ATA passengers."

Northwest Airlines also is allowing ATA passengers and employees to fly to Hawaii or Cancun on standby but it will cost them $100 for each leg of a trip, with fees to be paid upon boarding. That offer expires May 3.

Delta is doing much the same with flights it serves between destinations in Hawaii and Mexico through April. Affected passengers can purchase confirmed space on Delta planes at a 20% discount to Delta's lowest walk-up fare through April.

US Airways said passengers can purchase standby tickets to destinations in Hawaii and Mexico for $100 each way by calling reservations. Tickets will not be sold at the airport, but passengers must show proof of purchase of the ATA ticket.

 

[Jimro]

It looks like somebody finally figured out that they will make more money out of keeping you happy than trying to nickel and dime you at every opportunity.

 

That is why I consistently keep going back to USAA even though their rates are usually a percentage point or higher, the excellent customer service is worth it.

 

Jimro

[FC]

Except for their fraud dept., that's another great company. They embody customer service. Discover Card is pretty good too. Chase, Citi, and MBNA are not so good.