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Blogger: Indonesia residents buys 9 business tix with Alaska miles, all cancelled

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Blogger: Indonesia residents buys 9 business tix with Alaska miles, all cancelled

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Old Jun 1, 2019, 7:59 am
  #1  
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Blogger: Indonesia residents buys 9 business tix with Alaska miles, all cancelled

A travel blogger is covering this incident this morning. Doesn't sound like the purchaser has ever flown on an Alaska flight in their life, but purchased Alaska miles, booked 9 business class tickets for family on JAL, and Alaska cancelled all of them. In this case, unlike others reported here in the past, the purchaser was offered a refund of their payment. The purchaser is not one of the travelers. From the blog:

  • She lives in Indonesia and opened her Mileage Plan account in April
  • In early May she purchased a total of 225,000 Alaska miles (150,000 miles plus a 50% bonus); that’s exactly the annual limit Alaska has on purchased miles
  • She booked a total of nine business class tickets across four different flights on Japan Airlines for travel fairly last minute
  • She isn’t one of the travelers, but rather she claims it’s her family members traveling, but their last names aren’t the same (as is often the case, especially in Indonesia)
  • A few days after booking she received an email saying all of her tickets were canceled, and they offered to refund her for the miles purchased
Another blogger posted in the comments section that the purchaser should file a DOT complaint. If you live in Indonesia and ticket on JAL, and the flights never touch US soil, do you have standing to file a DOT complaint? No actual Alaska flights involved. Is this something DOT investigates?

Has me wondering how much time Alaska spends managing these mileage purchases and redemptions. Guess it's just a risk of their selling miles for cash to anyone that wants to buy, and the income far outweighs their time in closing accounts or cancelling tickets (though if the purchaser has made prepaid ground arrangements once ticketed, they could be out a lot of money). The difference with the incident covered on the blog is that the purchaser was offered a refund. We don't typically see that when purchasers show up on the Alaska forum seeking help.
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Old Jun 1, 2019, 8:03 am
  #2  
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9 intra-asia tickets business class tickets, shocker. Big fraud area, It's one of the reasons why we cant book within 3 days of departure on intra-asia flights
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CDKing is offline  
Old Jun 1, 2019, 9:19 am
  #3  
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Originally Posted by Alaska Airlines Mileage Plan
The terms of our program are clear that it is a personal account and not to be used to purchase tickets for others. Please review what you agreed to when you joined by going to our terms and conditions. Below is a portion of what you agreed to when you joined our Mileage Plan and in your case you are the travel arranger for other people.

Travel agents, travel arrangers and unauthorized brokers are not permitted to issue Mileage Plan tickets or to process or facilitate any other Mileage Plan transactions (including Mileage Plan account creation, account inquiries, and mileage or award ticket transfers) on behalf of others. If Alaska Airlines becomes aware that a member or a third party has misrepresented his/her identity in order to perform a Mileage Plan transaction, Alaska Airlines may, in its sole discretion, void the transaction. Miles or award tickets issued, transferred or obtained in violation of these conditions of membership are voidable, in Alaska Airlines’ sole discretion.
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Old Jun 1, 2019, 10:51 am
  #4  
 
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The chance of this being legit is about zero. You don't just suddenly realize:

1. Your closest 9 friends & family all want to go on holiday across 4 different flights to different destinations in the next week or so.
2. Think Alaska Mileage Plan is the best way to acquire a good deal on said flights through *purchased* miles. Never interacted with the program until you want to go on holiday...omitting any program local in the Asia region.
4. You are perfectly willing to send 9 friends and family on holiday for spending your own thousands of dollars (around $4-5kUSD for the miles) without expecting anything in return or even going with them on holiday. [Frankly, if i was sending them on my own money....i would actually like to go with them]

AS did the right thing....if it was legit....have them provide proof or other flight/hotel bookings showing the holiday. I don't think it was unreasonable to say this was fraud. I have made a one off booking for my friends and family....but not 9 all at once with no interaction of the program.......my bank certainly asks a question and denies the transaction when they think Im getting 500 dollars out of a Las Vegas atm at 3am (it was in fact me...but denied it cuz i never go to vegas or take money out in that denomination....but the point is they denied me and asked questions afterwards). AS miles are the currency here.....they have the right to deny and ask questions for atypical behavior.
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Old Jun 1, 2019, 12:59 pm
  #5  
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"The terms of our program are clear that it is a personal account and not to be used to purchase tickets for others."

I guess I should read the T&C again. I have purchased and booked award tickets for others (nieces, nephews, my wife or MIL) on several occasions. None of them shared my last name.
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Old Jun 1, 2019, 7:24 pm
  #6  
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Originally Posted by notquiteaff
"The terms of our program are clear that it is a personal account and not to be used to purchase tickets for others."

I guess I should read the T&C again. I have purchased and booked award tickets for others (nieces, nephews, my wife or MIL) on several occasions. None of them shared my last name.
I think they're paraphrasing and being purposefully obtuse. You can't sell mileage tickets. I bet that's what happened here.

You can certainly book for family and friends. Nothing wrong with flying a friend or family member out, so long as they don't pay you for it.
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Old Jun 1, 2019, 8:11 pm
  #7  
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In that case the burden of proof should be on AS to prove that payment was made.

The DOT could certainly take action regardless of the fact that the forms are not on US soil (they may not, but they could) The DOT has a regulation prohibiting unfair and deceptive business practices by airlines based in the US. This extends to all aspects of their business.

If this is legit (or even if it isn't), the obvious workaround is to open AS accounts in the names of the travelers.
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Old Jun 1, 2019, 10:42 pm
  #8  
 
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Originally Posted by VegasGambler
In that case the burden of proof should be on AS to prove that payment was made.

The DOT could certainly take action regardless of the fact that the forms are not on US soil (they may not, but they could) The DOT has a regulation prohibiting unfair and deceptive business practices by airlines based in the US. This extends to all aspects of their business.

If this is legit (or even if it isn't), the obvious workaround is to open AS accounts in the names of the travelers.
it is AS program, and it is clear that AS can do anything it wants.

it is clear that the ticket is probably like SIN - TYO - CGK for 25k miles in business class.

unless AS takes action in stopping broker, i think the stopover would disappear for other real AS users.
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Old Jun 1, 2019, 10:45 pm
  #9  
 
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Obviously, AS could work with JL to ambush people at boarding just like AA does. (have security show up to ask them questions)
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Old Jun 1, 2019, 11:04 pm
  #10  
 
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I kinda can understand this kind of thing happening once every decade for me: JL rarely release more than 4 seats for mid haul J, and a lot of them are much more readily available last minute, especially CX. So if I really wanna stretch my benefit of the doubt I would say it could be possible to send the family across a bunch places on last minute awards. I can also see me being hesitant to register until I am sure that I will purchase miles. However, odds of all these happening is so slim that I think AS has the right to stop them and demand proof, since it is a good way to deter much worse behaviors. It is a bit sad to say this but I believe being a bit strict would mean thousands of frauds getting caught while a few innocents get trapped in the crossfire.
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Old Jun 2, 2019, 12:23 am
  #11  
 
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Originally Posted by VegasGambler
The DOT could certainly take action regardless of the fact that the forms are not on US soil (they may not, but they could) The DOT has a regulation prohibiting unfair and deceptive business practices by airlines based in the US. This extends to all aspects of their business.
What federal law is Alaska violating? It's not a deceptive business practice if they explicitly prohibit something in their terms and conditions.

Originally Posted by VegasGambler
If this is legit (or even if it isn't), the obvious workaround is to open AS accounts in the names of the travelers.
That would be fraud. You can't open accounts for other people.
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Old Jun 2, 2019, 12:59 am
  #12  
 
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Originally Posted by writerguyfl
What federal law is Alaska violating? It's not a deceptive business practice if they explicitly prohibit something in their terms and conditions.



That would be fraud. You can't open accounts for other people.
the bonus miles is a lot less when buying less than the maximum. so it would cost more to buy miles and liquidate all the times on sweet spot
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Old Jun 2, 2019, 8:48 am
  #13  
 
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Maybe Alaska needs to limit Mileage Plan to those who reside within the footprint of its network and/or close partners.
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Old Jun 2, 2019, 9:06 am
  #14  
 
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Originally Posted by UAPremierExec
Maybe Alaska needs to limit Mileage Plan to those who reside within the footprint of its network and/or close partners.
Or, they can place more limitations on purchasing miles.
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Old Jun 2, 2019, 9:33 am
  #15  
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Or require some history with Alaska. Don't allow new members to purchase miles within weeks of joining the Alaska program or require some minimal Alaska flight activity. The Indonesian buyer opened an Alaska account in April and bought miles in May. Maybe require 90-180 days before you can buy miles for your account or a couple of Alaska segments? Alaska has lots of options besides capping the sale of miles.

They already have a 150,000 mile cap in place for purchases by those without elite status (though with bonus miles that could add up to 225,000 actual miles as it did with the Indonesia incident, so still a lot of available miles) .
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