American Airlines AAirpass Lifetime Unlimited 1st Class Travel

[mussel]

So when American Airlines initiated the lifetime all-you-can-fly 1st Class AAirpass program in the early 80's, it thought it was a good idea to raise capital when interest rate was well into double-digit. Initially it cost $250,000 for the primary pass and $150,000 for a companion pass and rose steadily until 94 when AA killed the program. It turned out it's deal of lifetime for many travelers who bought into the program. AA estimated 2 of the most frequet users cost the airline $1 million a year each. In addition to the lost revenue AA has to pay taxes for each flight the pass holders take and they earn miles too. Now AA tries every tricks in the book to revoke the passes. If I had the dough I'd buy into the program too. The program returned for one last time in 2004 as part of the Neiman Marcus X'mas catalog, it cost $3M for the primary pass and $2M for the companion, there's no taker. If I had the dough, I'd definitely score such a steal.

http://www.latimes.com/business/la-fi-0506-golden-ticket-20120506,0,7103119.story

 

[mordecai]

Caught this the other week. Fascinating story

 

[NAMOR]

A wants them to die

 

[impolyt_one]

would do it in a heartbeat, plus the companion pass.

 

[Pennglock]

Are they going to be able to discharge these in bankruptsy?

I also wonder how AA is calculating their opportunity cost for these guys...are they only counting full flights where other customers have to be turned away, or are they just adding up the market price for every flight these guys take?

 

[HORNS]



Caught this the other week. Fascinating story

+1

 

[jrd617]

double

 

[jrd617]

Wow.

They earned miles on TOP of the first class flights too. Reminds me of: http://online.wsj.com/article/SB126014168569179245.html

He built up so many frequent flier miles that he'd give them away, often to AIDS sufferers so they could visit family. Crew members knew him by name.

Shoulda paid cash!!

In discovery, company lawyers tracked down a Dallas woman who had cut Vroom a $2,800 check to fly her son to London. An elderly couple gave him $6,000 for a trip to Paris. And bank records showed more than $100,000 in checks to Vroom written by owners of a local jewelry store who frequently flew with Vroom.

 

[impolyt_one]



Wow.
They earned miles on TOP of the first class flights too. Reminds me of: http://online.wsj.com/article/SB126014168569179245.html
Shoulda paid cash!!

Yeah that is the deal sealer too; mileage could pay for lodging on the road, the champagne parties are free, and some crafty uses of the freight allowances afforded to first class passengers could be used to make up whatever money you need otherwise. No need to break any rules or try to sell off tickets. The chance to buy into a luxury vagabond lifestyle for $5m/2people for life is a steal.

 

[edinatlanta]

Ya my dad has easily spent that much on airline tickets over the past 20ish years or so. I know he

A) Never imagined he'd travel as much as he does now back then and
B ) wouldn't be able to afford it but damn... the opportunity cost for him is astronomical. He's spent so much time juggling two airline FF accounts to get the best deal, always complained about being in the "most elite status" of one but not getting upgraded... it far exceeds the $1m price point.

Then again, he actually likes some of that **** so maybe it wouldn't be to his advantage.

 

[texas_jack]

That's ******* awesome