Buying a lifetime ticket, the man made the airline suffer

In 25 years of holding the AAirpass for life, Steve Rothstein flew more than 10,000 flights, contributing to American Airlines' disastrous losses.

A man bought a lifetime ticket and caused the airline to suffer. — **Steve Rothstein and his multi-stamped passport.**

In 1981, Steve Rothstein was the lucky man to get the "best deal" in the history of the aviation industry. He bought a lifetime ticket called AAirpass from American Airlines for $250,000 (equivalent to 5.8 billion VND).

The AAirpass allows passengers to fly first class anywhere in the world , anytime, for the rest of their lives. And for an additional $150,000, AAirpass holders can bring anyone else into first class with them.

Steve Rothstein, an investment banker in Chicago at the time, was one of the lucky passengers on American Airlines. Seeing the potential value of the deal, he borrowed $400,000 to repay over five years at 12% interest.

But what the airline never thought was that during many years of holding the lifetime AAirpass ticket, Steve Rothstein and this group of passengers contributed to causing great losses for the airline.

History of AAirpass lifetime flight ticket

In the late 1970s, many airlines began operating in North America, creating more competition in the industry. The 1980s brought with them rising inflation, soaring oil prices, and depressed economic conditions that challenged the US economy.

During that time, American Airlines was one of the airlines that was hit hard. The airline went through a serious financial crisis and incurred a loss of $76 million in 1980, according to Historyofyesterday.

To remedy the situation, American Airlines came up with a unique promotion that not only ensured sales but also ensured customer loyalty.

Robert Crandall (CEO in 1981) came up with the idea of selling lifetime first-class tickets, which guaranteed a quick, large profit for American Airlines.

He believes that no one really flies that much to get value for money from this lifetime ticket.
In 1981, for only $250,000 (equivalent to VND5.8 billion), customers could buy an AAirpass ticket that could travel anywhere for life.

For an additional $150,000, AAirpass holders can bring anyone else into first class with them.
In 1990, the price of an AAirpass ticket was $600,000 (equivalent to 14 billion VND) for two people. In 1993, the price for this type of ticket increased to $1.01 million (equivalent to 23.7 billion VND) and by 1994, the airline stopped selling it. There are about 28 people who have owned such a lifetime flight ticket.

However, the airline later realized that they had made a big mistake in selling those tickets. Most buyers flew for more than the ticket was worth.

In 1994, the airline decided to end the program and recall all outstanding AAirpass tickets.

A 2007 financial analysis found that, on average, each of those customers cost the airline about $1 million a year in fees and taxes. That means the airline was losing nearly $30 million a year due to lifetime tickets.

Steve Rothstein's scandal and the failure of the airline

Over a period of 25 years, Steve Rothstein visited more than 100 countries and took more than 10,000 flights. All told, the flights cost an estimated $21,000, about 84 times what he originally paid.

He gets to sit in the most comfortable airline seats, enjoy the best meals and entertainment, skip long airport lines, and never have to worry about cancellation fees.

He has flown hundreds of flights to New York, Los Angeles (USA), or to Ontario (Canada) just to buy his favorite sandwich.

Sometimes, he flies to London (UK) dozens of times a month. Occasionally, this customer is generous enough to use his companion ticket to invite a stranger at the airport to sit next to him in first class.

In 2008, Rothstein and several others were stripped of their lifetime AAirpasses. He and several other passengers filed a lawsuit and said they would never fly the airline again, according to The Guardian.

Rothstein's group lost the lawsuit and never got their AAirpasses back. Meanwhile, 25 other passengers, including billionaire Mark Cuban, still had valid tickets.

However, in the end, the airline's end was not without the word "disastrous". In 2011, they declared bankruptcy to restructure the company.

According to vietnamnet.vn

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