Mark Cuban’s First Purchase After Becoming A Millionaire Was… Miles
Carly Zinderman June 16, 2018
Mark Cuban is well established as a wealthy man these days. But back in 1990 he was just starting out his life as a millionaire. So the question everyone asked him was how he planned to spend his new funds, according to an article on CNBC.
Cuban had been working hard and hadn’t taken a vacation in years to get his first company up and running and then up for sale. So he decided that his big purchase would be a lifetime pass on American Airlines.
American Airlines introduced the lifetime unlimited AAirpass in 1981. For a cook $250k you could fly anywhere as often as you wanted. And you could add a companion pass for $150k. In 1990, the price of the pass increased to $600k. By 1993, American Airlines had discontinued the pass after one owner flew over 40 million miles on it.
Cuban explains that when he made the decision for the hefty purchase, he was at an old-timey steakhouse surrounded by friends. They had a phone at the table so he made a call to place his request, convincing his friends that he was drunk. He wasn’t, and the paperwork came through a few days later.
According to Cuban, he figured that despite the hefty price tag he was still getting a good deal of roughly 12 cents a mile. American Airlines reports that although the program has been discontinued, a few people still own them and they are still valid.
Nowadays, Cuban has a private jet so he may or may not still be taking advantage of his pass. Still, the memory of it lingers on as he reveals that he used it to fly from one party to another, taking more trips than he can count.
Nobody on American flew 40 million miles ,let alone by 1993.
This article title is beyond misleading. It's just wrong.
Michael Dell bought one too. It was unlimited First Class travel anywhere where AA flies. Many of those people who bought it really used it to the max resulting in economic costs to AA being far more than what was anticipated when the offer was still valid. Numbers have dwindled and many of those who still have it can afford a private jet and others have been revoked through AA accusing them of violating the terms of the offer/program.
I'm totally lost. How is buying an unlimited pass for flying related to purchasing miles? The article doesn't even mention anywhere about him purchasing any miles as the headline states.
You may want to add that AA thinned the heard of remaining holders of lifetime air passes by accusing holders of violating the terms of agreement and voided their cards and kicking them out of the program. Example- One holder bought multiple trans cons versus getting a hotel room