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Sep 20, 2019 · Rothstein v American Airlines, Inc starred my father, Plaintiff Steven Rothstein, and the defendant, then the world’s third-largest airline. With $23bn in annual revenue, American Airlines...
- Caroline Rothstein
Steven Rothstein, a financier then from Chicago, upgraded to a lifetime AAirpass for $233,509.93 on October 1, 1987, after a discount of $16,490.07 for the value of mileage on a previous AAirpass. He added a $150,000 companion pass two years later.
Sep 20, 2019 · The story of Steven Rothstein is known to frequent fliers: he flew tens of millions of miles on American Airlines, only to have his lifetime pass revoked by the airline for allegedly abusing it. In 2011, Rothstein lost his case against American, in which he sued the airline for revoking an AAirpass, citing "fraudulent usage," an AAirpass he ...
- Jane Frye
- How Did The Scheme Come About?
- What Did The Unlimited AAirpass Offer Its Owners?
- Why The Unlimited AAirpass Was Terrific
- Why It Was A Blunder
- Subsequent Policy Changes
- Such Passes Are Now A Rarity
The decision for an unlimited AAirpass came about after the Fort Worth, Texas-headquartered US legacy airline posted a $76 million annual loss in 1980. This was due to the 1978 Airline DeregulationAct, which had the effect of bringing about new competition and reduced ticket prices. In today's money, such a loss would equate to approximately $284 m...
While the price of the five-year unlimited AAirpass has been hard to come by, it has been well-documented that the lifetime version was a one-time purchase of $250,000 in 1981. Today, that's equivalent to more than $933,000, underlining the elite nature of the pass and the exclusivity and rarity of its holders. By completing this one-time purchase,...
The three examples below are among the most notable in the history of the unlimited AAirpass in terms of making the best possible use of the ticket.The first concerns investment banker Steven Rothstein, who purchased the AAirpass in 1987, flying over 10,000 flights in 25 years. Living in Chicago, Rothstein was known to fly to London to have lunch w...
If it hasn't become abundantly clear from the examples above, American Airlines ultimately ended up losing vast sums of money from its unlimited AAirpass program, primarily due to the habits of a few 'super travelers.' On a more general level, the following aspects also played a key role in the AAirpass being a loss-maker: 1. Passholders could make...
Realizing the blunder, in 1990, American Airlines opted to raise the price of an unlimited AAirpass (with a companion) to $600,000 (worth just over $1.4 million in today's money). Not wanting to cancel the program outright, they further increased the cost to $1.01 million in 1993 (equivalent to $2.15 million in 2023). Finally, another year down the...
Perhaps due to the scale of American Airlines' commercial blunder with the AAirpass program, you rarely hear of airlines offering unlimited flight passes nowadays. This is especially pertinent for tickets offered on a lifetime basis. That being said, one shorter-term equivalent in recent years could be found in Norway. Known as the Explore Norway p...
- Chris Loh
Jul 23, 2019 · FOR LIFE. One of the people who bought the pass was Steven Rothstein, a stockbroker from Chicago. In 2008, American revoked his pass, citing “fraudulent activity.” On its face, it seemed like a story about a rich guy who had abused his golden ticket. In reality, though, the story is so much deeper.
Jul 22, 2019 · American Airlines, Inc. starred my father, Plaintiff Steven Rothstein, and the Defendant, then the world’s third-largest airline. With $23 billion in annual revenue, American Airlines had nothing to lose. For my father, it was a last-ditch effort to save his life. Here’s how it all took off.
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Nov 13, 2019 · I caught up with Steven Rothstein who was one of the customers who purchased the infamous AAirpass. Rothstein, a former investment banker from Chicago, said that he flew four times a week and...
