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Airline’s £190,000 Ticket Blunder Costs Millions

A former
American Airlines
The boss disclosed the genuine cause behind the airline’s decision to cancel a passenger’s ‘lifetime’ first-class travel privileges – following the frequent flyer costing the company a significant sum of money.

Steven Rothstein, a businessman from
Chicago
In 1987, he bought a special £190,000 AAirpass that entitled him to unrestricted first-class travel for his entire lifetime.

Besides purchasing the AAirpass, Rothstein went even further by spending an additional £115,000 on a companion pass, which enabled him to have company during his travels.

Back then, Rothstein was 37 years old and viewed the AAirpass as a smart financial move due to his regular business travels.

In the next twenty years, Rothstein took roughly 10,000 flights, covering over 30 million miles of travel.

His frequent flying reportedly cost American Airlines a staggering $21 million (£16 million).

The ex-wife of the businessman, Nancy, stated to journalists back then that Rothstein ‘boarded a plane just as casually as others might board a bus.’

Even though he frequently embarked on extravagant trips, Rothstein’s charmed life took a sudden turn in December 2008.

Speaking to the
Guardian
In 2019, he remembered the instance when he was told about the dismissal.

He stated: “I approached the ticket desk, registered my bags for London, made my way to the boarding gate… and just as I stepped onto the aircraft, they presented me with a letter rescinding the AAirpass.”

Why did they allow me to reach the gate? Why didn’t they inform me from the start, as that would have been the considerate approach?

However, Rothstein’s adventure did not conclude there; American Airlines swiftly initiated a legal confrontation against him, alleging that he had exploited the system by executing numerous ‘speculative reservations’ for fictitious travelers.

The airline stated that Rothstein reserved 14 flights using aliases like ‘Bag Rothstein’ and ‘Steven Rothstein Jr,’ claiming this breached the conditions of the AAirpass agreement.

When defending himself, Rothstein claimed that the sole guideline he was instructed to adhere to was refraining from letting others utilize the AAirpass system.

He also mentioned that he rejected proposals from individuals who were ready to compensate him with thousands of dollars per week for the opportunity to use it.

The stockbroker’s spouse and child also claimed he never touched a computer and insisted “all of his reservations were always made through an American Airlines staff member who got paid for it.”


Rothstein clarified, “When I purchased the AAirpass, they explicitly stated that the sole rule was not to transfer the pass to anyone else. Those times didn’t require passenger ID verification.”

American Airlines subsequently accused multiple passengers of violating their agreements by either giving strangers seats booked for their companions or leaving those seats unoccupied altogether for extra legroom.

Rothstein rebutted the travel conglomerate’s allegations by filing a counter lawsuit, claiming that the company breached the conditions of the ticket by invalidating it.

Nevertheless, the disagreement was ultimately resolved outside of court, and the pass has subsequently been terminated.

Bob Crandall, who served as the chairman and CEO of American Airlines from 1985 to 1998, subsequently stated the following:
Los Angeles Times
that the pass, introduced in 1981, was

initially conceived as something companies would purchase for their key staff members.

He remarked, “It quickly became clear that the audience was more astute than we anticipated.”

This follows the budget airline
Wizz Air introduced a new ‘unlimited flying’ promotion.
For merely £426 per year, customers can enjoy unrestricted flights.

The subscription service, costing €499 (£426) during a brief period in August 2024, enables travelers to journey all the way to the Maldives with a consistent price of £9 per leg.

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