- Sep 29, 2004
- Reaction score
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.