[PHXFlyer]

First, the airlines have not received any "bailout money" since post 9/11.

Second, what was the time interval since the time you first requested the upgrade until the time it cleared? Is it possible that your client used some of those miles for another ticket or upgrade in the interim and failed to tell you? If so perhaps you should have advised your client that you were waitlisting them for the upgrade and that they should maintain a sufficient balance in their mileage account to cover it should it clear.

Finally, how would opening up the US market to foreign competition have helped in this situation? According to the airline there were insufficient miles in the account to cover the upgrade. Just like if there are insufficient funds in a checking account they "bounced the check" so to speak. They simply made your client pay for the upgrade with cash instead of miles. It is commendable that you feel the need to reimburse your client but that was your choice. You also claim that this incident caused you to lose the account. May I ask why you went out on a limb for someone who basically fired you over this single snafu? Sounds like you'd be better off without this client in the long run.