Always use your credit card.
Last week we bought tickets to Hilo for June through ATA and yesterday they ceased operations with no refunds. Oops.
So potentially we are out $1200 but it looks like our credit card company is going to protect us (no guarantee yet).
Unfortunately I already paid the credit card but I am optimistic.
One of my first thoughts was of anyone on vacation now with no airline to get them home.
I also think about people for whom a trip to Hawaii is a once in a lifetime sort of thing and the airline closed and is not giving back their money.
Wild story, eh?
12 comments:
Hey, Aloha was the Raiders official carrier - oops.
I can only assume that Al Davis used his Gold Card on that transaction.
Roger,
sorry to hear about the airline problem.
I am curious roughly what is your net equity exposure (minus short funds)?
what is your cash level?
you speak of being defensively postured and I am sure you are I just not sure what it means.
ballpark 20% cash another 3-4% double short and I have been slow in implementing new accounts.
Roger, Had a similar experience in 2001 with Renaissance Cruises. We had paid in full for one cruise and a down payment on a second when they went bankrupt. My Master card went to bat for us and returned our money in full - took a while and was a little stressful but we never lost a penny. One of the perks of using a credit card!
Regards from the North end of Walker Rd!
Ed, right?
Thanks for the note. Fingers still crossed but hopefully a good ending.
I'm really not sure why more airlines aren't gone by now. I can't remember the last good flying experience I had.
SEC is going to go after people who spread rumors about bear sterns.
Why will they waste their time? If they spread rumors bear was in danger of going under and THEY WERE CORRECT, then what are they guilty of doing?
Seems like the truth and free speech will be their defense and the SEC will look toothless - which it is
Roger,
Great blog. Appreciate your input on the comment I left a few weeks ago about shorting double inverse ETF's. I was looking at fxp/fxi over the past year. The underperformance is pretty significant on FXP compared to FXI. I know FPX has a high yield because of the bond holdings but the volatility is killing its performance. These type of instruments will be around for a while and are fine for a short term hedge but I'm curious why you don’t just buy index options rather than use these ETF's? Also what will the fund companies do long term as the price declines. Will they just do reverse splits every 5 years or so? I’m actually looking at buying some as a short term play waiting for the next leg down. Appreciate the time and effort you put into this.
scott,
volatility can, depednign on what it looks like create all sorts of issues for the levered funds; double long SPX lagged SPY last year, think about that!
Options are more complicated to manage, more complicated tax-wise for clients and options are easier to mis-manage.
Not a good time for Hawaii and airlines servicing Hawaii.
Aloha and ATA bust...
always a good time for Hawaii, just a more difficult time getting there, lol.
I think Fed should open a special discount window for airlines to borrow future taxpayer money.
The Fed would takover all of the airline's bad debt in exchange for freshly minted cash.
Our children will then pay for it after we are dead, so its not problem for us.
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