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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 20, 2020, 6:26 pm
  #61  
 
Join Date: Jul 2017
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I'd be interested to know how much money you saved OP .. If the ticket price difference for those 52 flights is more than $2500, sounds like it's still a win.
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Old Aug 20, 2020, 7:02 pm
  #62  
 
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Originally Posted by beachfan
It seems like a small amount. As to everyone saying there is no negotiation possible, I suggest they have no idea. 2020 is not 2018. Unlikely given the low amount, yes. But what have you got to lose?
According to the OP: 600K RDM and lifetime status

Originally Posted by beachfan
i think fessing up, perhaps acting like you thought it was ok, and communicating that you want to maintain AA as your airline if choice will go along way. Maybe a smaller offer along with that would be accepted (“funds are very tight, would $2k be sufficient?). While the odds of that being accepted may be less than 50%, unless someone has inside knowledge, I don’t believe it’s zero.
Originally Posted by Often1
Make a decision. Then act...Offer $2K to be wired within 24 hours of acceptance. If that is rejected or you don't hear back, send the $2,500 or give up the EXP and move on.
As someone else has mentioned, the number AA purportedly gave is very likely already a well-reduced amount intended to make the point without losing the customer. Nothing I've read here or elsewhere leads me to believe AA Corporate Security is into accepting low-ball ultimatums. Non-zero chance they'll accept? Maybe. However the OP was clearly, unequivocally, and self-admittedly in violation of the AA COC and AAdvantage T&C...and s/he knew it.

Assuming the numbers are as stated, the OP winds up paying 0.416 cents per mile to keep 600K RDM. Yeah, that stings--but 600K RDM > 0 RDM so...

Put another way, if the judge hands you a choice between a relatively low fine and a death sentence, haggling over the fine strikes me as exceedingly unwise.

cheers!
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Old Aug 20, 2020, 7:13 pm
  #63  
 
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My advice - turn state's evidence and offer to dob in every other Flyertalker you know who has done this. Then you should be able to plea bargain down your penalty.
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Old Aug 20, 2020, 7:17 pm
  #64  
 
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Originally Posted by JamesBigglesworth
I'd be willing to bet actual money that this is simply the effect of AA deciding that they need more revenue and Corp Security coming up with the idea of trolling for frequent HC users and shaking them down.

I doubt greatly they will have gone through and re-priced all the segments given that would have to be a manual operation and they are simply too lazy for that. It's far more likely they will have simply priced each event at ~$50 as a threshold number for getting people to cough up. As the banked miles and status go up so too does the shake down demand. I'd be very surprised if there were a lot of people getting these demands over the next few months.
I'm mangling the quote, and can't recall who said it: "Never ascribe to malice what can be explained by mere coincidence" [or incompetence; I've heard/used both].

I very much believe AA can reprice each segment over a quite extended historical period. I have no doubt all of the transportation industry keeps and uses extensive data on every jot and tittle having to do with what it costs and what they charge to move people and things.

As has already been mentioned, this is a contract issue pure and simple. AA Corporate Security does these audits on a continual basis and they conclude when they conclude. I don't think it's reasonable to think they ignore contract violations until it is convenient and desirable to increase revenue--if AA were to target a large number of customers as you suggest, it would be evident and provable (in addition to setting them up for the argument that there may clearly be a precedent for them accepting a "prohibited practice" in the COC/T/&C by failing to take action within some arguable reasonable amount time after the violation).

I do doubt very much AA's lawyers and corporate leadership would view such a short-term, short-sighted, and (very likely) insignificant money grab as a wise thing to do.

cheers!

Last edited by AAir_head; Aug 20, 2020 at 7:27 pm
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Old Aug 20, 2020, 7:37 pm
  #65  
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Originally Posted by AAir_head
I'm mangling the quote, and can't recall who said it: "Never ascribe to malice what can be explained by mere coincidence" [or incompetence; I've heard/used both].

I very much believe AA can reprice each segment over a quite extended historical period. I have no doubt all of the transportation industry keeps and uses extensive data on every jot and tittle having to do with what it costs and what they charge to move people and things.

As has already been mentioned, this is a contract issue pure and simple. AA Corporate Security does these audits on a continual basis and they conclude when they conclude. I don't think it's reasonable to think they ignore contract violations until it is convenient and desirable to increase revenue--if AA were to target a large number of customers as you suggest, it would be evident and provable (in addition to setting them up for the argument that there may clearly be a precedent for them accepting a "prohibited practice" in the COC/T/&C by failing to take action within some arguable reasonable amount time after the violation).

I do doubt very much AA's lawyers and corporate leadership would view such a short-term, short-sighted, and (very likely) insignificant money grab as a wise thing to do.

cheers!
I'm sure they can. It's just a lot of work for the OP to go through to save 40 bucks a ticket. The numbers just don't add up to what one would expect to be the real "damages"
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Old Aug 20, 2020, 7:42 pm
  #66  
 
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Originally Posted by AAir_head
I'm mangling the quote, and can't recall who said it: "Never ascribe to malice what can be explained by mere coincidence" [or incompetence; I've heard/used both].

I very much believe AA can reprice each segment over a quite extended historical period. I have no doubt all of the transportation industry keeps and uses extensive data on every jot and tittle having to do with what it costs and what they charge to move people and things.

As has already been mentioned, this is a contract issue pure and simple. AA Corporate Security does these audits on a continual basis and they conclude when they conclude. I don't think it's reasonable to think they ignore contract violations until it is convenient and desirable to increase revenue--if AA were to target a large number of customers as you suggest, it would be evident and provable (in addition to setting them up for the argument that there may clearly be a precedent for them accepting a "prohibited practice" in the COC/T/&C by failing to take action within some arguable reasonable amount time after the violation).

I do doubt very much AA's lawyers and corporate leadership would view such a short-term, short-sighted, and (very likely) insignificant money grab as a wise thing to do.

cheers!
while i do agree with you in general, yhe threat of cancellation of aadvantage benefits does have teeth, perhaps. .up to OP
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Old Aug 20, 2020, 7:50 pm
  #67  
 
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Originally Posted by Antarius
I'm sure they can. It's just a lot of work for the OP to go through to save 40 bucks a ticket. The numbers just don't add up to what one would expect to be the real "damages"
I don't think the OP did the work--AA did. I'm assuming AA told him the "real damages" and offered to let him pay a $2,500 fine instead.

cheers!
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Old Aug 20, 2020, 7:54 pm
  #68  
 
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Originally Posted by Bradhattan
while i do agree with you in general, yhe threat of cancellation of aadvantage benefits does have teeth, perhaps. .up to OP
I don't disagree with that at all; just don't think for a moment AA is going to "extort" money from AAdvantage members by hastily cooking up COC/T&C infractions to put program benefits in jeopardy. It's just not good for business and despite all the grousing to the contrary, they're not stupid.

cheers!
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Old Aug 20, 2020, 8:03 pm
  #69  
 
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Originally Posted by AAir_head
I don't think the OP did the work--AA did. I'm assuming AA told him the "real damages" and offered to let him pay a $2,500 fine instead.

cheers!
While AA did initially price the routes to be available to the public, it was OP who found the hidden city pricing for each of his 52 trips
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Old Aug 20, 2020, 8:06 pm
  #70  
 
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Originally Posted by pmarrsouth
While AA did initially price the routes to be available to the public, it was OP who found the hidden city pricing for each of his 52 trips
Ahhh, okay. Thought we were referring to the forensic work of figuring out what the direct flights would have cost...

cheers!
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Old Aug 20, 2020, 8:30 pm
  #71  
 
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not sure what is worse... taking AA for 52 hidden city tickets or posting here and asking what should be done?
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Old Aug 20, 2020, 8:33 pm
  #72  
 
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Waiting for this one to make it to OMAAT or View From the Wing......
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Old Aug 20, 2020, 8:57 pm
  #73  
 
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Originally Posted by HappyInTheAir561
I have about 600K miles and still (pre-COVID) fly about 100-120 segments a year. What do I want them to do? negotiate of course. ~$2,500 is what they are asking.
You owe them. Pay it,
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Old Aug 20, 2020, 9:23 pm
  #74  
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Originally Posted by AAir_head
I don't think the OP did the work--AA did. I'm assuming AA told him the "real damages" and offered to let him pay a $2,500 fine instead.

cheers!

even at a low rate of a penny per mile 600K = $6000 for that alone its worth paying $2500
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Old Aug 20, 2020, 9:39 pm
  #75  
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52 tickets?

This is like the guy Lufthansa sued for using a single refundable business class ticket to enter the LH lounge 36 times in a year.

As they say in the market, bears win, bulls win, pigs get slaughtered.
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