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LA Times: The frequent fliers who flew too much [lifetime AAirpass withdrawn]

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LA Times: The frequent fliers who flew too much [lifetime AAirpass withdrawn]

 
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Old May 8, 2012, 4:53 pm
  #151  
 
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Originally Posted by QueenOfCoach
No need to miss flights. Just ask each companion each time "Did you pay the pass holder for your ticket?". That takes about 15 seconds. Kind of like asking if they packed their own bags, have they had their bags with them at all times, etc.

If the pass holder is, in fact, taking money in return for a ticket, eventually someone will blurt out the truth. If not, then the pass holder need not worry.

Even better: the pass holder will only take companions who are truly friends and relatives, not random untrustworthy strangers.
Yes, but they're much less likely to extract such a "confession" without the relentless browbeating techniques mentioned in the article.
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Old May 8, 2012, 9:11 pm
  #152  
 
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Originally Posted by Upgraded!
Yes, but they're much less likely to extract such a "confession" without the relentless browbeating techniques mentioned in the article.
All they need is one.

If the guy was truly indiscriminate in his companions, eventually one will blab.
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Old May 8, 2012, 9:20 pm
  #153  
 
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Originally Posted by QueenOfCoach
All they need is one.

If the guy was truly indiscriminate in his companions, eventually one will blab.
Again, that's all assuming it was actually against the rules in the first place, which, based on the article, is questionable.
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Old May 8, 2012, 10:09 pm
  #154  
 
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Originally Posted by Upgraded!
There was a relatively brief period (in the 90s I believe) when AA operated flights to OZ. Otherwise, he'd have had to burn miles on QF. The fact that he could take any necessary positioning flight required probably made that easier, though.
We flew AA on our honeymoon in 1990 DFW-HNL-SYD. It was on a DC-10 or MD-11.
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Old May 8, 2012, 10:30 pm
  #155  
 
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Originally Posted by DFWFlier
We flew AA on our honeymoon in 1990 DFW-HNL-SYD. It was on a DC-10 or MD-11.
Would have been a DC-10; MD-11 didn't enter service until December, 1990 and AA didn't receive its first until mid-1991. So either it was a DC-10 or you forgot the year you were married (so in case your spouse reads FT, we'll just go with DC-10 ).
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Old May 8, 2012, 10:44 pm
  #156  
 
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Originally Posted by Upgraded!
Again, that's all assuming it was actually against the rules in the first place, which, based on the article, is questionable.
Here's something interesting. I went through Mr Vroom's contract and saw, on page 8, paragraph 18c:

"American reserves the right to terminate this agreement and refund the purchase price of any AAirpass..."
https://www.documentcloud.org/docume...-contract.html

Well, that's interesting.
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Old May 8, 2012, 11:09 pm
  #157  
 
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Originally Posted by QueenOfCoach
Here's something interesting. I went through Mr Vroom's contract and saw, on page 8, paragraph 18c:



https://www.documentcloud.org/docume...-contract.html

Well, that's interesting.
I didn't see any reference to them offering the refund; it sounded more as though they tried to find an excuse to just end it without repaying these guys their money. Perhaps if they'd done that they'd have been in a more defensible position.
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Old May 9, 2012, 5:42 am
  #158  
 
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Originally Posted by Upgraded!
I didn't see any reference to them offering the refund; it sounded more as though they tried to find an excuse to just end it without repaying these guys their money. Perhaps if they'd done that they'd have been in a more defensible position.
You would think it would make more sense. And cheaper than the legal fees they have likely incurred. But it probably would not have kept someone in a job at AA, so we all know how those stories end
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Old May 9, 2012, 7:58 am
  #159  
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I was wondering about the refund option also (and mentioned it earlier in the thread, I think).

It would hardly even be a lot of money - there's no stipulation there that the dollar amount get adjusted for inflation, so the amount would seem trivial years later. The amount would certainly be less than their liability going forward either allowing him to fly or hiring lawyers.

There must be more to it somewhere.
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Old May 9, 2012, 8:36 am
  #160  
 
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Originally Posted by Upgraded!
Would have been a DC-10; MD-11 didn't enter service until December, 1990 and AA didn't receive its first until mid-1991. So either it was a DC-10 or you forgot the year you were married (so in case your spouse reads FT, we'll just go with DC-10 ).
My wife definitely does NOT read FT (and thinks I read it too much!), but I went back and looked at my log and it was definitely a DC-10. Returned on a QF 747-400, which was still pretty new and exotic, nonstop SYD-LAX, .
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Old May 9, 2012, 8:42 am
  #161  
 
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Originally Posted by Upgraded!
I didn't see any reference to them offering the refund; it sounded more as though they tried to find an excuse to just end it without repaying these guys their money. Perhaps if they'd done that they'd have been in a more defensible position.
Here's 18c:

c) American reserves the right to terminate this agreement and refund the purchase price of any AAirpass, less charges for mileage actually flown, calculated at a rate of $.28, except for Unlimited Mileage AAirpasses, wich will be refunded in accordance with paragraph 7, subparagraph d) of this agreement.
Let's look at 7d:

d) For purposes of applying such formulas to refunds on Lifetime AAirpasses, these AAirpasses shall be deemed to have the following terms: REgular Lifetime AAirpass - 120 months (10 years); Unlimited Mileage Lifetime AAirpass - 200 months. To determine the mileage purchased with any Regular Lifetime AAirpass (... irrelevent ...) The second formula is inapplicable to refunds on Unlimited Mileage Lifetime and and Unlimlited 5 Year Term AAirpasses.
The first formula in 7c apparently applies to the holder of the Unlimited Mileage AAirpass:

Remaining full months before expiration
__________________________________________
Total AAirpass months purchased x Purchase Price =A


So, the pass holders in question had Unlimited Lifetime AAirpasses, which are "deemed to have" a term of 200 months, or 16 years 8 months.

According to the contract, the AAirpass was purchased 1-2-90 (top of page 9). (The countersuit says 12-28-89.) By 2007, those 200 months were up. In other words, the formula for a refund would revert to a negative number in September, 2007.

The pass holder was confronted in LHR and handed the letter terminating the AAirpass in July, 2008. Thus, if I read this correctly, American Airlines owed the pass holder nothing by way of refund for the cancelled AAirpass (paragraph 7) and had the right (paragraph 18c) to terminate the agreement.

If I am reading this right, there was no need whatsoever to confront the two companions at LHR.
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Old May 9, 2012, 10:17 am
  #162  
 
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Originally Posted by ExpatExp
There is another thread somewhere on FT where one of the lifetime pass holders talks about the intangible value of the pass. He mentions that there was an incredible feeling of freedom that came with the card, since you could actually get on any flight with seats, anytime, and go anywhere in the AA network. He indicated that the value of that feeling is different for every person, but in his case, it was more than worth the price of the pass, and was a far greater feeling of freedom than simply having the cash in the bank and using it to buy a refundable F ticket.
This rings true to me. By analogy, and to bring the dollar amounts down into the mortal realm, many people would rather pay $20 for unlimited access to something (carnival rides, whatever) and then forget about the cost and just enjoy the experience, rather than pay $5 per use and then have to fork over additional money on a recurring basis.

Of course, such a plan works only if you intend to use at least close to the per-use value of everything in the final analysis. You wouldn't pay $20 for unlimited carnival rides if you expected to ride just once and the per-ride cost was $5.
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Old May 9, 2012, 1:36 pm
  #163  
 
Join Date: Jan 2012
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When people paid $300,000 back then to purchase the lifetime AAirpass,
did they just send $300,000 checks directly to AA? Based on all the stuff
that's publicly available, it appears to be what they did.

It just seems to me that if I were one of those people, I would definitely
get my attorney to carefully go over the contract before making the
payment and signing it.

If AA somehow comes to its senses and resolve this by giving out
refunds to the offending lifetime AAirpass owners, will the refund
be $300,000? Or is it $300,000 in today's dollars?
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Old May 9, 2012, 2:08 pm
  #164  
 
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Originally Posted by MissyH
When people paid $300,000 back then to purchase the lifetime AAirpass,
did they just send $300,000 checks directly to AA? Based on all the stuff
that's publicly available, it appears to be what they did.

It just seems to me that if I were one of those people, I would definitely
get my attorney to carefully go over the contract before making the
payment and signing it.

If AA somehow comes to its senses and resolve this by giving out
refunds to the offending lifetime AAirpass owners, will the refund
be $300,000? Or is it $300,000 in today's dollars?
i guess you did not read post #161 then?
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Old May 9, 2012, 2:15 pm
  #165  
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Originally Posted by QueenOfCoach
If I am reading this right, there was no need whatsoever to confront the two companions at LHR.
Perhaps AA failed t read the contract.
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