Imagine paying $350k for unlimited flights forever, only for the airline to revoke it

[Cecil Terwilliger]

I don't know how much actual discussion this thread will generate but this story was too interesting to not post.

There are frequent fliers, and then there are people like Steven Rothstein and Jacques Vroom.

Both men boughttickets that gave them unlimited first-class travel for life on American Airlines.It was almost like owning a fleet of private jets.

Each had paid American more than $350,000 for an unlimited AAirpass and a companion ticket that allowed them to take someone along on their adventures. Both agree it was the best purchase they ever made, one that completely redefined their lives.

In the 2009 film "Up in the Air,"the loyal American business traveler played by George Clooney was showered with attention after attaining 10 million frequent flier miles.

Rothstein and Vroom were not impressed.

"I can't even remember when I cracked 10 million," said Vroom, 67, a big, amiable Texan, who at last count had logged nearly four times as many. Rothstein, 61,has notched more than 30 million miles.

Heavy users, including Vroom and Rothstein, were costing it millions of dollars in revenue, the airline concluded.

Mike Joyce of Chicago bought his in 1994 after winning a $4.25-million settlement after a car accident.

In one 25-day span this year, Joyce flew round trip to London 16 times, flights that would retail for more than $125,000. He didn't pay a dime.

In September 2007, a pricing analyst reviewing international routes focused the airline's attention on how much the AAirpass program was costing, company emails show.

Cade was assigned to find out whether any AAirpass holders were violating the rules, starting with those who flew the most.

She pulled years of flight records for Rothstein and Vroom and calculated that each was costing American more than $1 million a year.

There was nothing in the AAirpass terms prohibiting that. But Cade considered the habit striking in light of something else she found. Rothstein made 3,009 reservations in less than four years, almost always booking two seats, but canceled 2,523 of them.

On Dec. 13, 2008, Rothstein and a companion checked in at Chicago O'Hare International Airport for a transatlantic flight. An American employee handed him a letter, which said his AAirpass had been terminated for "fraudulent behavior."

Vroom landed at Heathrow that morning. As he boardedAmerican Flight 50 from Dallas/Fort Worth to London the evening before, security officers took note of the clothes he was wearing, down to the Crocs on his feet.

Inside Heathrow, Vroom headed for the VIP lounge, where an American employee handed him a letter and said he could never again fly on the airline.

http://www.latimes.com/business/la-f...073,full.story

I cut out some of the stuff on exactly why they had their passes revoked but basically they broke no rules and AA pulled the plug just to be rid of them. I should clarify, AA claimed they broke rules but if I read the article correctly none of what they did was against the rules until AA decided to change the rules and retroactively punish them for it.

What an absolutely insanely awesome thing to have. Could you imagine coming home from work on the Friday of a long weekend and deciding to head to ______ for the next 3 or 4 days and not have to worry about flights at all? I'd be constantly flying to NHL cities just for the night to watch Flames games. That'd just be the tip of the iceberg though.

[Azure]

If they signed a legally binding contract, they should own up to it. But really, what the hell were they thinking? That someone who could fly for free for the rest of their life wouldn't make us of that privilege? Really? The moron who came up with this deal and valued it at a measly $350,000 should be canned.

That being said, I'm sure if properly managed and setup, they could have something like this that would work.

Cancelling so many flights is dumb, because he pays nothing in cancellation fees, and it hits the airline in the pocket, so obviously that would need to be changed. But, unlimited is unlimited. If I had unlimited flights, I would fly all over the place too. Even if just for a day or so.

[Cecil Terwilliger]

A few details on the initial cost and then AA raising the price realizing their folly.

But the marquee item was the lifetime unlimited AAirpass, which started at $250,000. Pass holders earned frequent flier miles on every trip and got lifetime memberships to the Admirals Club, American's VIP lounges. For an extra $150,000, they could buy a companion pass. Older fliers got discounts based on their age.

In 1990, the airline raised the price of an unlimited AAirpass with companion to $600,000. In 1993, it was bumped to $1.01 million. In 1994, American stopped selling unlimited passes altogether.

In 2004, American offered the unlimited AAirpass one last time, in the Neiman-Marcus Christmas catalog. At $3 million, plus a companion pass for $2 million more, none sold.

[4X4]

From the company's perspective, it's a pretty bad idea to begin with. Anyone who can afford to spend $350,000 on a lifetime ticket, can probably also afford to make use of it. What did AA think? People would give them $350,000 and then not really travel all that much?

[Azure]

For enough money they could make it work. People might still buy them too.

But not for $350,000.

[Canada 02]

does any airline currently offer something similar?

[Mean Mr. Mustard]

While I can understand the guy traveling pretty much everywhere, flying return to London from presumably Chicago 16 times in a 25 day period is absolutely insane. I presume that the flight takes roughly 10-11 hours plus time in security, so the guy is going to London for a cup of coffee, hell that is almost at the point of doing it in order to get the airline food... and that isn't to mention the fact that the guy was screwing over the airline at every turn with cancelling an insane number of trips. I am sure that there is a legal clause somewhere that the lawyers have mulled over for a couple days and been able to determine that something the guy did at some point in time broke the rules.

If the guy was smarter I am sure that he would still be taking advantage of a great deal, but alas the was an idiot who decided to flaunt the deal in front of everyone, especially through the cancelling of flights which costs the airline a tonne of money in itself. This is a situation where both parties come off looking bad.

[Shawnski]

When there is no longer a "cost" to someone for a product, there is absolutely no reason to them to use it wisely.

Sort of like, oh I don't know.... healthcare?

[Notorious Honey Badger]

Originally Posted by Shawnski

When there is no longer a "cost" to someone for a product, there is absolutely no reason to them to use it wisely.

Sort of like, oh I don't know.... healthcare?

[Jacks]

No sympathy for either party.

Selling the passes in the first place was pretty stupid on the part of the airline and they deserve what they get.

Cancelling thousands of bookings and flying round trip to London 16 times in 25 days is just abusing the privilege and they deserve what they get.

[Notorious Honey Badger]

Originally Posted by Jacks

No sympathy for either party.

Selling the passes in the first place was pretty stupid on the part of the airline and they deserve what they get.

Cancelling thousands of bookings and flying round trip to London 16 times in 25 days is just abusing the privilege and they deserve what they get.

What privilege? He BOUGHT it. It's unlimited. There's no disclaimer saying X number of cancellations result in loss of the product. Or X number of uses over X days.

[afc wimbledon]

Originally Posted by Shawnski

When there is no longer a "cost" to someone for a product, there is absolutely no reason to them to use it wisely.

Sort of like, oh I don't know.... healthcare?

Are you suggesting that breaking my leg for the free jello at the hospital is irresponsible?

[Jacks]

Originally Posted by Notorious Honey Badger

What privilege? He BOUGHT it. It's unlimited. There's no disclaimer saying X number of cancellations result in loss of the product. Or X number of uses over X days.

Yes but there is common sense. If you paid for an all you can eat buffet, filled a plate, had one bite, dumped the plate full in the garbage, then went back for plate after plate they would throw your ass out.

[Cecil Terwilliger]

Just to clarify a couple more things, the article talks about several people so it isn't the whole story is about one guy.

And some people did appear to sell seats they got using their pass for cash but like I said the article suggests that the airline only changed that rule later.

[Notorious Honey Badger]

Originally Posted by Jacks

Yes but there is common sense. If you paid for an all you can eat buffet, filled a plate, had one bite, dumped the plate full in the garbage, then went back for plate after plate they would throw your ass out.

The better comparison would be walking up the buffet, getting in peoples way, then putting the plate down and leaving. I think.

[Cecil Terwilliger]

Originally Posted by Jacks

Yes but there is common sense. If you paid for an all you can eat buffet, filled a plate, had one bite, dumped the plate full in the garbage, then went back for plate after plate they would throw your ass out.

But what if you signed a contract with rules and regulations when you went to an all you can eat buffet and it said nothing of limits or waste.

They could throw you out but they'd deserve to be sued for violating your agreement without you having broken any rules.

[Frequitude]

It's probably cheaper for AA to just fight it out in court and settle.

[Jacks]

Originally Posted by Notorious Honey Badger

The better comparison would be walking up the buffet, getting in peoples way, then putting the plate down and leaving. I think.

Not a perfect comparison but you get the idea.

Originally Posted by Cecil Terwilliger

They could throw you out but they'd deserve to be sued for violating your agreement without you having broken any rules.

And they deserve to be sued.

[Shawnski]

Originally Posted by afc wimbledon

Are you suggesting that breaking my leg for the free jello at the hospital is irresponsible?

Hmmm, let's check the "wise" factor on that one. Nope, pretty sure getting a broken leg fixed is a wise use of their resources. But if you are JUST breaking your leg to get the jello, it would be unwise. So yes I think you are correct in your statement. It would be irresponsible. And pretty darn dumb!

[Jake]

I know the guy signed a contract and paid the fee for unlimited flights, but he was making about two bookings per day, and was cancelling almost all of them. What was he thinking?