Feb 21, 2013, 9:16 am
Last edit by: JDiver
American Airlines Lifetime AirPass / AAirPass
"Unlimited First a Class Travel on AA"
"Unlimited First a Class Travel on AA"
NOTE: Please see here if you are seeking information about AA AirPass prepaid travel.
BACKGROUND: Lifetime AAirpasses were sold at various times, along with Companion Airpasses for a reduced amount. The unlimited Lifetime AAirpass, including lifetime Admirals Club membership, was initially offered for $250,000 in 1981 (accompanying companion AAirpass for $150,000), and apparently the last offer was through the 2004 Neiman Marcus Christmas Catalogue for USD $3 million (buy a companion pass for a discounted $2 million).
At least some AAirpasses could be transferred one time. Some offered unlimited travel in American Airlines First Class anywhere AA flies (no fees or taxes - AA absorbed those) and others offered a maximum number of miles flown per year (could carry over unused flight miles to the next year) earning full AA EQM / RDM / EQP - lifetime Admirals Club membership included.
AA Lifetime AirPass / AAirPass / pass discussion (2013 and onward)
Aug 1, 2015, 11:58 am
#31
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Did that pertain to the Needless Markup, er Neiman Marcus offer, or to all Lifetime AAirpasses offered by AA in 2004? I believe I read there were somethink like 13 sold that year, but I don't recall where; it has been some time since the offers.
Oct 29, 2015, 1:18 am
#32
Join Date: Oct 2015
Posts: 1
ARTICLE: The Pass That Allows People to Fly Free Forever & AA's Attempt to Kill It
Last edited by JDiver; Oct 29, 2015 at 6:04 am
Oct 29, 2015, 6:24 am
#33
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Welcome to FlyerTalk.
Your post has been merged into the existing thread on this topic.
We ask members with links to external sources to include a synopsis or description of the article, etc. referred to.
Thanks for adding a link to a newer, somewhat complete, article on Lifetime AAirpass.
/Moderator
Your post has been merged into the existing thread on this topic.
We ask members with links to external sources to include a synopsis or description of the article, etc. referred to.
Thanks for adding a link to a newer, somewhat complete, article on Lifetime AAirpass.
/Moderator
Apr 17, 2018, 11:34 pm
#34
Moderator: American AAdvantage
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Mark Cuban Still Loves His Unlimited Lifetime First Class AAirpass
In a Travel & Leisure article,
Yes, fly anywhere AA flies, anytime there’s a seat available, and earn miles.
The unlimited Lifetime AAirpass sold for $250,000 initially, with a Lifetime Companion AAirpass for $150,000. (The Airline Deregulation Act had cost AA and in 1980 had lost $76 million; CEO Bob Crandall thought up the Lifetime AAirpass as a Hail Mary pass to bring in some income now.) At the end in 1994 was offered by Neiman Marcus for $3,000,000. One could get a 50% discounted companion pass for $2 million.
And, according to The Hustle, in 2007 AA decided Rothstein and Vroom were each costing them ~$1 million annually, so they learned how to use their alleged violations of the AAirpass Terms and Conditions to rescind their AAirpass rights.
Link to “The rise and demise of the AAirpass, American Airlines’ $250k lifetime ticket” in The Hustle.
The original and “recent” thread is AA Lifetime AirPass / AAirPass / pass discussion (2013 and onward).
...in 1981, when American Airlines was in deep financial trouble, it offered up a lifelong, unlimited first class ticket good for flying anywhere in the world for a one-time fee of $250,000. Just 28 people in the world purchased the ticket and Cuban happened to be one of them. According to Maxim, Cuban called the decision to buy the ticket "one of the best purchases [he's] ever made.”
and
According to The Hustle, financier Steve Rothstein and marketing executive Jacques E. Vroom Jr. also both purchased the unlimited AAirpass. Rothstein, the site noted, bought his pass in 1987 and took 10,000 flights over the next 25 years using the pass. He once reportedly used the pass to fly to Canada because he was craving a specific sandwich.
and
According to The Hustle, financier Steve Rothstein and marketing executive Jacques E. Vroom Jr. also both purchased the unlimited AAirpass. Rothstein, the site noted, bought his pass in 1987 and took 10,000 flights over the next 25 years using the pass. He once reportedly used the pass to fly to Canada because he was craving a specific sandwich.
The unlimited Lifetime AAirpass sold for $250,000 initially, with a Lifetime Companion AAirpass for $150,000. (The Airline Deregulation Act had cost AA and in 1980 had lost $76 million; CEO Bob Crandall thought up the Lifetime AAirpass as a Hail Mary pass to bring in some income now.) At the end in 1994 was offered by Neiman Marcus for $3,000,000. One could get a 50% discounted companion pass for $2 million.
And, according to The Hustle, in 2007 AA decided Rothstein and Vroom were each costing them ~$1 million annually, so they learned how to use their alleged violations of the AAirpass Terms and Conditions to rescind their AAirpass rights.
Link to “The rise and demise of the AAirpass, American Airlines’ $250k lifetime ticket” in The Hustle.
The original and “recent” thread is AA Lifetime AirPass / AAirPass / pass discussion (2013 and onward).
Last edited by JDiver; Apr 18, 2018 at 12:00 am
Nov 6, 2018, 9:31 am
#35
Join Date: Dec 2015
Posts: 202
The rise and demise of the AAirpass, American Airlines’ $250k lifetime ticket
An interesting read: https://thehustle.co/aairpass-americ...fetime-ticket/
Moderator, please feel free to remove if this has been discussed before - I'm posting from a mobile device and can't do a proper search.
Moderator, please feel free to remove if this has been discussed before - I'm posting from a mobile device and can't do a proper search.
Nov 8, 2018, 12:28 pm
#37
Join Date: Nov 2013
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Fascinating, and shame on AA. Their math is probably like when police announce the "value" of the drugs they confiscate. The flights were going out either way and since AA oversells seats they weren't actually losing customers. Plus, without the pass those "abusers" wouldn't have flown as often which is another way the "losing million(s) a year" is baloney.
Nov 8, 2018, 1:52 pm
#38
Join Date: Aug 2010
Location: LAX
Programs: AA Lifetime Gold but PlatPro thanks to LPs
Posts: 4,439
I clearly remember reading the article in the Los Angeles Times, entitled "The Frequent Flyers Who Flew Too Much". (IIFC)
The LA Times published, on its website, copies of the actual contracts signed by the two men. In the depths of the contract was a schedule that itemized how much would be refunded should the airpass be discontinued. After a certain number of years (20? IIFC), that refund went to zero.
In other words, by the terms of the original contract, AA could discontinue the airpass after 20 (IIRC) years and not owe the pass holder a dime.
In my humble opinion, both men were abusing the system. As they say, pigs get fat, hogs get slaughtered. In retrospect it might have been a great idea for the two to have been a bit more discreet in their use of their airpasses.
The LA Times published, on its website, copies of the actual contracts signed by the two men. In the depths of the contract was a schedule that itemized how much would be refunded should the airpass be discontinued. After a certain number of years (20? IIFC), that refund went to zero.
In other words, by the terms of the original contract, AA could discontinue the airpass after 20 (IIRC) years and not owe the pass holder a dime.
In my humble opinion, both men were abusing the system. As they say, pigs get fat, hogs get slaughtered. In retrospect it might have been a great idea for the two to have been a bit more discreet in their use of their airpasses.
Nov 8, 2018, 2:26 pm
#39
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Morality aside it didn't seem as though the original contract forbid such activity. Moreover, wouldn't someone at the time thought hey these guys will be flying every week around the world i F. Seems like a total bonehead corporate move and a couple of guys ready to pounce on that stupidity. While I may have not used it for what they had I certainly would have been flying every chance I could in F.
Nov 8, 2018, 2:26 pm
#40
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Is there more to this article? Why would you blame people who used an unlimited lifetime travel plan for, well, unlimited lifetime travel? Why would you need to be discreet? You pay the equivalent of a decent size house in a decent neighborhood - you should be able to live on a plane.
Nov 8, 2018, 2:38 pm
#42
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The story gets republished every few years. Here's a link to the latimes story in 2012:
The frequent fliers who flew too much - latimes
And the lifetime airpass thread can be found here:
AA Lifetime AirPass / AAirPass / pass discussion (2013 and onward)
The frequent fliers who flew too much - latimes
And the lifetime airpass thread can be found here:
AA Lifetime AirPass / AAirPass / pass discussion (2013 and onward)
Nov 8, 2018, 4:26 pm
#43
Join Date: Aug 2015
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Nov 8, 2018, 4:30 pm
#44
Join Date: Aug 2010
Location: LAX
Programs: AA Lifetime Gold but PlatPro thanks to LPs
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Is there more to this article? Why would you blame people who used an unlimited lifetime travel plan for, well, unlimited lifetime travel? Why would you need to be discreet? You pay the equivalent of a decent size house in a decent neighborhood - you should be able to live on a plane.
My conclusion is that, yes, they had unlimited lifetime travel with the airpass. Great. Fine. But... they abused the situation and eventually ended up with nothing.
There are people out there who do thing that are legal, but stupid. What they did was legal, but stupid. In my opinion. YMMV.
Nov 8, 2018, 4:46 pm
#45
Join Date: Aug 2010
Location: LAX
Programs: AA Lifetime Gold but PlatPro thanks to LPs
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As an example, consider the "all you can eat" buffet. Take a reasonable amount of food, and you're OK. Pile up multiple plates, take a bit from each one, then go back for more, leaving huge amounts of unconsumed food on the table, and you will be asked to leave.
Right now, today, I am dealing with a co-worker who overstepped some reasonable boundaries. She got greedy and is getting fired.