What Happens When…

…American Airlines sells passes for unlimited first class travel and then discovers that they’re losing money on the offer? The LA Times has a fantastic piece about how the airline started investigating its customers and ended up revoking the pass from several…

(HT to One Mile at a Time)

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  1. Pretty mind-boggling stuff. The AA anti-fraud team makes the IRS look like wusses!

    But unless the rules (when you bought it) said you can’t sell your companion ticket, how is that fraud?

    AA was unbelievably stupid to sell these passes. Only a little stupid to sell unlimited travel, but VERY stupid to award frequent flyer miles AND pay the taxes. This basically encourages folks to fly just to gin up frequent flyer miles! Like can you imagine this: “In one 25-day span this year, Joyce flew round trip to London 16 times, flights that would retail for more than $125,000. He didn’t pay a dime.”


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