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American Airlines Unlimited AAirpass Scandal - What Do You Think?

May 08, 2012
3 min read
American Airlines Unlimited AAirpass Scandal - What Do You Think?
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An interesting story came out on Saturday in the LA Times about savvy frequent flyers who purchased American Airlines' storied unlimited lifetime first-class AAirpasses back when they were first launched in the 80's. Not only did these AAirpasses, which started at about $250,000 (you could add a companion for another cool $150,000) and eventually went up to $3 million, include airfare on any route in first class where there was an available seat, but they even included taxes and fees, and you would rack up AAdvantage miles. Well, that was during the airline's heyday. Since it's been in financial straits in recent years, American has formed a crack team of investigators hoping to uncover AAirpass fraud and revoke these privileges since they cost the airline millions of dollars a year. This morning I talked about it with MSNBC host Craig Melvin, which you can view here.



The abridged version is that two men named Jacques Vroom (seriously, the name could only be better if we were talking about a high speed auto chase) and Steve Rothstein took aadvantage (ha) of their passes to the extreme for years- they were known to get off to Europe several times a week...with companions (sometimes just strangers they happened to meet). Initially this wasn't a big deal because they did not ostensibly violate any of the terms of the AAirpass. AA employees even helped them take maximum advantage by allowing them to book fake passengers so they'd have open seats next to them. However, once American realized they were losing millions of dollars, they encouraged their investigators to uncover instances where the men sold their companion tickets, and to revoke the AAirpasses, though details are still murky. Meanwhile, the men have not only flown around the world, but also accrued over 30-40 million miles each, and are currently banned from the airline pending court trials--though who knows when that will happen because of the bankruptcy.

In general, I think these guys took it to the extreme and I don't really feel bad that they got banned. A lot of their behavior was just outright gluttonous- like booking empty seats and making reservations they knew they'd probably cancel. If you poke the sleeping bear too many times, you can't be surprised when it awakes and eats you alive. That being said, I think American was shady in how they proceeded with the investigation (if what is written in the article is true about them coercing people to admit to lies). I can't really feel bad for these guys- they got their investment back many times over and they could still be flying if they weren't so brazen.

But what do you think? Was AA wrong to finally pull the plug on their passes? Am I being too hard on these guys because I'm just jealous they had a first class AAirpass for so many years?!

[poll id="15"]

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Apply for American Express® Gold Card
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Best for dining at restaurants
TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.