Airberlin Topbonus halted program redemption at the time the airline filed for bankruptcy, although the frequent flier program was a separate company 70% owned by Etihad.
The Topbonus program itself filed for insolvency last week (read more here) and today emailed an update about the situation (see above) that all is good and that members should continue crediting transactions into the program (so that they would have revenue stream obviously).
I don’t understand why Topbonus had to file for insolvency due to Airberlin filing for bankruptcy.
Loyalty programs should have reserves in place for all future redemption liabilities. Topbonus has collected cash from airberlin and all other partners that have purchased topbonus miles. I would assume that topbonus doesn’t pay airberlin before awards are actually consumed.
They may face greater liabilities though in case of awards issued that customers were or are not able to fly due to airberlin canceling routes or their ticket stock becoming worthless.
Topbonus could be liable to book these affected passengers on other airlines. They may have wanted to shed off these possible future liabilities by going through the insolvency process by themselves as well.
Certainly interesting to see what will come out of this. I certainly would NOT credit anything into Topbonus at this time.