They had to pay for the companion tickets. They weren't free.

Mentat: unyon: I did RTFA. By abuse it, you mean use it in ways not prohibited. That's AA's problem- they didn't place any restrictions on these at all. No wiggle room. It's the AT&T article a few down offering unlimited data.

And Goldman Sachs used credit default swaps in ways that weren't prohibited either. These guys were munchkins trying to game the system.

Because AA wasn't smart enough to figure out how people would use it, they were trying to game the system?

Nobody else hitting the LA Times pay wall eh?

Weaver95: sforce: Nobody else hitting the LA Times pay wall eh?

clear your browser cache and try disabling cookies.

I like my cookies.

Found a better fix. Delete latimes.com (may be unnecessary) and tribdss.com cookies, and block those two from saving cookies.

sforce: Nobody else hitting the LA Times pay wall eh?

If you use Firefox get adblock plus it disables pretty much all pay walls.

sforce: Nobody else hitting the LA Times pay wall eh?

Nope, We all paid for a LATimes pass. Lifetime articles for free, until we actually start costing them money.

:)

I love the line. "the customers were smarter than we were..."

Cmancman: Sell your companion (that you got for free) ticket

FTA: "For an extra $150,000, they could buy a companion pass."

If I paid for it, it is mine to do with as I please (as long as it is not prohibited, which it wasn't)

FTA: Last summer, an Illinois federal judge ruled that Rothstein had violated the contract by booking empty seats under phony names, including Bag Rothstein.

At least he's funny about it.

In other news, airlines aren't your friend. Never, never, buy a "lifetime" anything from an airline.

I wonder how much less use there would have been if they still had to pay any regulatory fees and taxes on their tickets. Would have been $20-$40 a ticket.

Now I think these people are in the creditor category in the bankruptcy. Their passes should have been classed an annuity product and regulated as such.

AT&T and AA must have the same employees Unlimited till they decide to limit it.

serial_crusher: 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.

Why would you even do that? You're probably spending as much time on the plane as you are on the ground.

Free* booze, food, and movies? First class on intercontinental flights is nice.

*where "free" really means "previously paid-for".

Satanic_Hamster: To address the discussion:
AA would have been in a stronger position if they changed their agreement to prohibit these practices. THEN can them if you caught them doing it.

Pretty sure the way these were setup, once purchased, they were purchased, and AA couldn't reach back and change the terms- the contract it was purchased under is the only one that matters. AA wanted to raise a bunch of cash quickly, they did, and some people get to take free rides for the rest of their lives as a result. AA should honor the damn contact and deal with it.

sforce: FTA: Last summer, an Illinois federal judge ruled that Rothstein had violated the contract by booking empty seats under phony names, including Bag Rothstein.

At least he's funny about it.

Bag sounds like something a Palin or a Romney would name their kid.

/not the Rothstein part, though. No joos allowed.

Dear American Airlines,

Break a deal, FACE THE WHEEL!

TV's Vinnie: Dear American Airlines,

Break a deal, FACE THE WHEEL!

[images.wikia.com image 288x241]

The horrible part of all this is that American Airlines is probably grateful for the attention to its intimidation tactics - the 62 other AAirpass customers (the article indicates that 4 folks, in all, have lost their AAirpasses) will most likely view this as "we're watching you like hawks now - one slip, and that half-million you paid us 30 years ago to keep us afloat won't be worth a friggin' dime now that we're calling the shots."

Again - trusting an airline is like trusting a car dealer. The Devil takes lessons in contract writing and contract enforcement from airlines.

It seems that where American Airlines screwed up was in offering the companion ticket. Looks like that idea wasn't thought-through.

sforce: Nobody else hitting the LA Times pay wall eh?

I submitted the same story earlier with a funnier headline and a link to the Chicago Tribune:

http://www.chicagotribune.com/business/la-fi-0506-golden-ticket-2012 05 06,0,896819,full.story

FormlessOne: TV's Vinnie: Dear American Airlines,

Break a deal, FACE THE WHEEL!

[images.wikia.com image 288x241]

The horrible part of all this is that American Airlines is probably grateful for the attention to its intimidation tactics - the 62 other AAirpass customers (the article indicates that 4 folks, in all, have lost their AAirpasses) will most likely view this as "we're watching you like hawks now - one slip, and that half-million you paid us 30 years ago to keep us afloat won't be worth a friggin' dime now that we're calling the shots."

Again - trusting an airline is like trusting a car dealer. The Devil takes lessons in contract writing and contract enforcement from airlines.

I don't see how the airlines can avoid a class-action or even an FCC investigation over breach-of-contract over this. People who could afford to plunk nearly half a mil on these deals back then can certainly afford some decent lawyers.

Mentat: No, it turns out that when you abuse it, you lose it. Read TFA.

First thing I thought as I read the article.
That and the airline should not have been surprised this would happen.

Cubansaltyballs: I'm sure they're just happy they don't have to have to fly AA anymore.

Seriously, AA is the worst airline in the world.

It's not even the worst airline that flies out of DFW. Not even close.

unyon: I did RTFA. By abuse it, you mean use it in ways not prohibited. That's AA's problem- they didn't place any restrictions on these at all. No wiggle room. It's the AT&T article a few down offering unlimited data.

This. Pay up AA

American airlines enjoyed the flexibility of this extra revenue at the time. American had bigger sales and influenced its stock price that year by being able to report x% more profit than they could have without this program.

This is classic ponzi scheme on a bigger level where hey 'give us your cash so we can help our distressed company and play with money cause we dont have any'

They don't care about later and yeah they didn't think it through. Sure they should have put in contract about cancellations and x times per month something like a cap. But Amercian were so hungry for cash they said anything. With the extra sales at the time it looked good on a profit loss sheet that year!!

American should get slammed for this and the execs that got bonus that year signed off on this one need to give back their bonuses. That was 1981 lol. This is really on the dumbass legal team that wrote up these stupid rules by American.

Now the profit loss by another bean counter at AA is showing this revenue loss. I bet you they did cop math as well and rated the 'loss' at American at highest price for that seat.

I have no sympathy American at all. I am not a big fans of rothsteins that take advantage but this is the one time where I have to go with the stein.

$350,000 was a LOT of money in 1981. You could get a CD paying 10%.

AA's cost of funds was astronomical at the time. The Fricking prime rate hit 18% around that time

AA liked its side of the bargain back then now wants to screw in essecence, it's lenders. Fark AA

serial_crusher: 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.

Why would you even do that? You're probably spending as much time on the plane as you are on the ground.

He really, really likes bangers and mash.