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Hidden City Audit - AA Demanding Payment or Account Termination

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Old Aug 22, 2020, 1:08 pm
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Last edit by: JDiver
American Airlines prohibits the practice known as “hidden city ticketing” (sometimes referred to as “skiplagging”, “throwaway ticketing” or “point beyond ticketing” as well).

When you purchase an American Airlines ticket you are agreeing to abide by their rules, terms and conditions. Some refer to this as a “contract of adhesion”. Your purchase is considered agreement to comply.Applicable American Airlines Conditions of Carriage (in part) — link

Prohibited booking practices

Reservations made to exploit or circumvent fare and ticket rules are prohibited.

Examples include (but are not limited to):
  • Purchasing a ticket without intending to fly all flights to gain lower fares (hidden city ticketing)
  • Buying a ticket without intending to travel, including to gain access to our airport lounges or other facilities
  • Combining 2 or more roundtrip excursion fares end-to-end to circumvent minimum stay requirements (back-to-back ticketing)
  • Booking a ticket in someone's name without the person's consent (which is illegal)
  • Holding reservations for reasons like securing upgrades, blocking seats or obtaining lower fares
  • Booking duplicate or impossible trips, for example multiple trips for the same passenger around the same time (trips a passenger physically could not complete)
If we find evidence that you or your agent are using a prohibited practice, we reserve the right to:
  • Cancel any unused part of the ticket
  • Refuse to let the passenger fly and check bags
  • Not refund an otherwise refundable ticket
  • Charge you for what the ticket would have cost if you hadn't booked it fraudulently
  • Require you refund to us any compensation we provided like bag delivery costs, and reimbursement for clothes or toiletries because of late or lost bags

Applicable AAdvantage Terms and Conditions, in part — link

Fraud, misrepresentation, abuse or violation of applicable rules (including, but not limited to, American or American Eagle® conditions of carriage, tariffs and AAdvantage® program rules) is subject to administrative and/or legal action by appropriate governmental authorities and American Airlines. Such action may include, without limitation, the forfeiture of all award tickets and any accrued mileage in a member's account, as well as termination of the account and the member's future participation in the AAdvantage® program. If your account is terminated due to inappropriate conduct or while under investigation, you may not open a new AAdvantage® account or participate in the AAdvantage® Program in any capacity without obtaining the express written permission of American Airlines. In addition, American Airlines reserves the right to take appropriate legal action to recover damages, including its attorneys’ fees incurred in prosecuting any lawsuit.

Hidden city ticketing is a way to find cheaper nonstop tickets by booking a connecting flight to a final destination beyond yours, but ending your journey at a layover point. You might find that a flight from New York to Nashville with a layover in Atlanta is cheaper than a nonstop ticket from New York to Atlanta, so you book the itinerary with the connection. But, when the plane stops in Atlanta, you end your journey there and are a no-show for the onward flight to Nashville. — scottscheapflights.com






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Hidden City Audit - AA Demanding Payment or Account Termination

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Old Aug 21, 2020, 12:22 pm
  #166  
 
Join Date: Jun 2015
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Originally Posted by Antarius
I just don't consider 65 in a 60 zone to be the same thing at all as a 100 in a 60.
I don't either, but I also don't consider "but he was doing 100" a defense if I get pulled over for doing 65. A rule is a rule, and if I break it, I break it. Of course you are more likely to get caught the more flagrantly/often you break it.
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Old Aug 21, 2020, 12:27 pm
  #167  
 
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Originally Posted by Antarius
I'd agree it was a little rich if it was the same degree of circumstance. I just don't consider 65 in a 60 zone to be the same thing at all as a 100 in a 60.
Of course; agree with your points that minor rule breaking is totally different than blatant rule breaking. Rules are meant to be flexible.

Though, I feel like OP is more like someone going 15 over the speed limit than 50. If OP is a high revenue customer, and did a few hidden city tickets a year over the course of many years, and AA essentially gave him a slap on the wrist to pocket some extra cash, it strikes me that AA doesn't really see this as 50 over the speed limit.
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Old Aug 21, 2020, 12:34 pm
  #168  
 
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$2,500 seems like quite a bargain. My guess is that we're looking at probably $15,000 in lost revenue - 50 tickets at a potential of $300 per ticket differential.
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Old Aug 21, 2020, 12:36 pm
  #169  
 
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Here are some of the current conditions of carriage for AA:

Prohibited booking practices

Reservations made to exploit or circumvent fare and ticket rules are prohibited.

Examples include (but are not limited to):
  • Purchasing a ticket without intending to fly all flights to gain lower fares (hidden city ticketing)
  • Buying a ticket without intending to travel, including to gain access to our airport lounges or other facilities
  • Combining 2 or more roundtrip excursion fares end-to-end to circumvent minimum stay requirements (back-to-back ticketing)
  • Booking a ticket in someone's name without the person's consent (which is illegal)
  • Holding reservations for reasons like securing upgrades, blocking seats or obtaining lower fares
  • Booking duplicate or impossible trips, for example multiple trips for the same passenger around the same time (trips a passenger physically could not complete)
If we find evidence that you or your agent are using a prohibited practice, we reserve the right to:
  • Cancel any unused part of the ticket
  • Refuse to let the passenger fly and check bags
  • Not refund an otherwise refundable ticket
  • Charge you for what the ticket would have cost if you hadn't booked it fraudulently
  • Require you refund to us any compensation we provided like bag delivery costs, and reimbursement for clothes or toiletries because of late or lost bags
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Old Aug 21, 2020, 12:43 pm
  #170  
 
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Originally Posted by Travel-Quinten
It's about time the US gets better consumer protection laws....
This is about contract law, not consumer protection.
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Old Aug 21, 2020, 12:46 pm
  #171  
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Anyone that is an EXP should know what about the prohibit booking practices. Now if he/she wants to take part in them, particularly to the level of 52 times presumably over a certain period of time (I'm assuming this wasn't 52 times over 20 years) then they take the high risk. There's no argument here. The OP either pays up and moves on and/or finds an airline that doesn't have restrictions on Hidden Cities.
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Old Aug 21, 2020, 1:57 pm
  #172  
 
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Originally Posted by PUCCI GALORE
This is a most interesting thread. Several queries ran through my mind. What do you suppose triggered their investigation in the first place? ,
Most perpetrators get caught because they commit the same offense in the exact same manner over and over again.

I suspect that the OP's itinerary was the same 52 times and that he missed the exact same flight at the exact same time over and over again. (And he thought that as an elite AA wouldn't notice or care)

You would have to wonder what a gate agent manning the flight would think when Mr A kept missing the same flight to the same city. After a while they might just say to their supervisor
"Did you notice that Mr. A missed our flight # 1234 again for the fourth time this month??"
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Old Aug 21, 2020, 2:05 pm
  #173  
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mods, please delete this comment.
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Old Aug 21, 2020, 2:30 pm
  #174  
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Originally Posted by funkydrummer
Well, I meant, why don't they bill you as soon as they detected you've skiplagged.

I still feel you gotta wonder about consumer protection laws if AA can do this.

McDonald's had to pay someone close to a million dollar for a coffee that was deemed too hot. To me, it seems common sense should dictate that a coffee is quite hot. Any reasonable person should know that without a label "this beverage is extremely hot".

To the contrary, AA's contracts of carriage are extremely complicated legal documents. You cannot expect the average person to fully understand them. It is honestly surprising to me when AA asks for more money if you use less of the service.

What if they had a clause "if you no-show, you won't get your money back and there will also be a penalty fee of $1k?" So no-showing and not flying would cost the consumer more than flying. Sounds extreme? Well, it would boil down to the same thing as charging somebody extra for skiplegging!
Here is the provision relating to HCT. Doesn't strike me, as you say, as a particularly complex legal argument. In fact, it's in plain English and it is "prohibited".

Prohibited booking practices

Reservations made to exploit or circumvent fare and ticket rules are prohibited.

Examples include (but are not limited to):
  • Purchasing a ticket without intending to fly all flights to gain lower fares (hidden city ticketing)
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Old Aug 21, 2020, 2:48 pm
  #175  
 
Join Date: Sep 2000
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Posts: 7,816
Originally Posted by Often1
Here is the provision relating to HCT. Doesn't strike me, as you say, as a particularly complex legal argument. In fact, it's in plain English and it is "prohibited".

Prohibited booking practices

Reservations made to exploit or circumvent fare and ticket rules are prohibited.

Examples include (but are not limited to):
  • Purchasing a ticket without intending to fly all flights to gain lower fares (hidden city ticketing)
And then this.....

If we find evidence that you or your agent are using a prohibited practice, we reserve the right to:
  • Cancel any unused part of the ticket
  • Refuse to let the passenger fly and check bags
  • Not refund an otherwise refundable ticket
  • Charge you for what the ticket would have cost if you hadn't booked it fraudulently
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Old Aug 21, 2020, 2:52 pm
  #176  
 
Join Date: Mar 2003
Location: Los Angeles, CA
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Posts: 6,956
Originally Posted by jcf27
Are you 100% sure this email is legit and not a targeted phish impersonating AA? Someone pointed out an error on the due date. Doubt AA would let something like that slip by.
If 100% a legit claim, I would negotiate. Everything is negotiable in life, including taxes and death.
Since the OP admits to the offense, it sounds legit. If I received an email from “AA Corporate Security“ accusing me of 52 instances of hidden city ticketing, I would post it on Flyertalk as a warning to others, and then delete the email.

If the OP had posted here, denied the offense, and 150 posts later grudgingly admitted to it and yet claimed they did absolutely nothing wrong, I would also say it was legit.
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Old Aug 21, 2020, 2:54 pm
  #177  
 
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Given that the AA security department is pretty thorough, I'll note the error in the date - "You may respond to this message by 3pm,CST, Friday, August 31, 2020"

I'm starting to wonder if the number of tickets or the amount of the "penalty" or the date on which a response is demanded as been changed in an effort to retain some semblance of anonymity. In other words, the true amount may be $7,500 but the OP doesn't want to reveal his identity by identifying specific facts that are relevant to his situation. Especially given that he has admitted to HC ticketing and he's effectively blown any legal recourse in that admission.
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Old Aug 21, 2020, 2:56 pm
  #178  
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Join Date: Mar 2014
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Originally Posted by IADCAflyer
  • Charge you for what the ticket would have cost if you hadn't booked it fraudulently
I seem to recall a thread from somebody who received an itemized bill from (I think) UA for skipped segments.
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Old Aug 21, 2020, 2:58 pm
  #179  
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Originally Posted by radonc1
Most perpetrators get caught because they commit the same offense in the exact same manner over and over again.

I suspect that the OP's itinerary was the same 52 times and that he missed the exact same flight at the exact same time over and over again. (And he thought that as an elite AA wouldn't notice or care)

You would have to wonder what a gate agent manning the flight would think when Mr A kept missing the same flight to the same city. After a while they might just say to their supervisor
"Did you notice that Mr. A missed our flight # 1234 again for the fourth time this month??"
I remember someone posting in the CO Forum years ago how Co sent a greeting party to meet a flight since it seems a number of passengers over time got lost between arriving and finding the gate for their AUS connection. That was the end of that group flying on HC. dont recall what the outcome was I think it was ante up now the difference in fares or get on the AUS flight
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Old Aug 21, 2020, 3:02 pm
  #180  
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Programs: AA 2MM, Bonvoy LTT, Hilton Diamond
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Originally Posted by azepine00
I hear WN is doing quite well for example.. It's not that AA can not change pricing model but they refuse to change.
Originally Posted by azepine00

Hopefully covid will lead to shakeup in the industry triggering more innovation...

apples and oranges. WN is a mesh network not hub and spoke. Hidden city ticketing is typically passenger abandoning trip at the hub but ticketed beyond because of fare difference. I don’t think banning prohibition of hidden city will lead to innovation; just increase in fares.

You need more competition to encourage innovation.

Originally Posted by cmd320
Hence the need for increased regulation in what has basically become a cartel.
How would you word such a regulation? I would guess some a rule will result in smaller cities being dropped / fares go up.

Originally Posted by LAX_Esq
I suppose OP could claim he gave them his card # and signed the authorization under duress and threat of extortion. Not sure if Amex would buy it, but there might be something more than non-zero chance of this working, albeit pretty low.
. There is no chargeback reason code for duress. A duress situation should be handled in court not chargeback.

Originally Posted by Cledaybuck
I don't think AA (or any airline) wants to put their CoC under review in a court of law.
Why not? OP abandoned part of the itinerary 50 times. CoC spelled out this is not allowed so it’s not like AA bait and switched. Let’s say new legislation results. End result is airlines will compensate by adjusting fares upward/cutting service to unprofitable cities.
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