Business

American Airlines Once Offered Unlimited First-Class Tickets for Life — and Then People Started Using Them…

Did you know there was a time when American Airlines offered an “unlimited first-class travel for life” pass? Seriously, it’s what it sounds like: for a modest fee (depending on your income bracket) you could purchase an “AAirpass” which would guarantee you to a lifetime of unlimited first-class travel.

American Airlines’ Lifetime Pass: How a Marketing Ploy Turned Into a Costly FailureIt’s a real life “golden ticket”!

American Airlines first rolled out the marketing program in 1981 and charged $250,000 per pass. And for an additional $150,000, “AAirpass” customers could purchase the “companion ticket,” allowing them to bring one person with them on any flight . . . anytime, anywhere, for life (sorry, we just can’t get over the “unlimited” thing).

“It was almost like owning a fleet of private jets,” writes Ken Bensinger for the Los Angeles Times.

But like most stories about truly awesome things, this one doesn’t end very well.

“We thought originally it would be something that firms would buy for top employees,” said Bob Crandall, American’s chairman and chief executive from 85-98, according to the L.A. Times report. “It soon became apparent that the public was smarter than we were.”

The marketing ploy turned out to be a major mistake for the airline. What went wrong?

Simply put, several people who bought the “AAirpass” did exactly what we would have done with a “golden ticket” of unlimited lifetime travel: they went crazy.

“They started flying everywhere, all the time. They’d pick random people out of the check-in line and give them free first-class upgrades,” writes Cory Doctorow Boing Boing.

“They’d fly to Japan for lunch and back to the States that night. One of them was costing the airline more than $1,000,000 a year,” he adds.

American Airlines’ Lifetime Pass: How a Marketing Ploy Turned Into a Costly Failure“AAirpass” owners Steven Rothstein, left, and Jacques Vroom. American estimates the two cost the airline millions in lost revenue every year (photo source: L.A. Times)

How did the airline react to expensive “AAirpass” owners? The company got mean.

“The airline decided to get rid of them. They put private eyes and internal investigators on them. They sued. They extorted passengers who‘d flown on companion tickets for confessions that they’d paid for the ‘gift,’ and froze their frequent flier accounts, saying they’d only restore them once the passengers fessed up,” Doctorow writes.

Men who were once treated like kings by the airline found themselves the target of investigations and lawsuits.

And although American discontinued the “AAirpass” in 1994 (and offered it one last time for $3,000,000 in a 2004 Neiman Marcus catalog), the airline is still dealing with the financial repercussions (as well as that whole Chapter 11 bankruptcy thing).

We told you the story didn’t have a very happy ending.

Read the in-depth report on American Airlines’ ill-fated “AAirpass” here.

This story has been updated.

Comments (58)

1 2
  • Individualism
    Posted on May 7, 2012 at 8:03pm

    Add exemption from TSA groping and its a deal

    Report Post » Individualism  
    • Fred Zimmerman
      Posted on May 8, 2012 at 1:18am

      If this is how the Rich (anyone with 250K in 1981) treat free stuff…How do you think the Poor will treat Free Health Care! Not only will it bankrupt the Dr’s and the Hospitals, It will Bankrupt the Country! Nothing in life is FREE there are always consequences!!!

      Report Post »  
    • HuskerDave
      Posted on May 8, 2012 at 9:47am

      Nice segeway, Fred. You make a very valid point!

      Report Post »  
  • Hickory
    Posted on May 7, 2012 at 7:46pm

    The seat of the whole problem is there is no longer profit in air travel. If we eliminated the hassle of the terrorists induced searches, I think prices could go up. Here is a solution: Set up a reward program that pays good money to any passenger that catches a terrorist either in the airport on on the plane. Pay a double reward if the passenger is over 50 and catches the terrorist. There will be less need for the TSA searches and old folks will fly just to get a chance at the jackpot. There will be competitive buying instead of competitive selling.

    Report Post » Hickory  
  • living1nBF3
    Posted on May 7, 2012 at 7:02pm

    Say what you will about domestic flying, I agree. I don’t fly domestic anymore.

    Fly first class to Europe or Asia. The do not stop feeding you and giving you free drinks. If I had $250k in 1981 that was spongeable, I would have bought one, and probably the companion. I would have done the same thing the others did. Fly to Japan for sushi and return the same night. Fly to Australia, bee bop around for a few days and fly back.

    AA screwed up and tried to fix it through their lawyers. I have no sympathy for the bankrupt aholes.

    Report Post »  
    • roostercogburn
      Posted on May 7, 2012 at 7:35pm

      I would have to agree with you, used to fly Northwest, now that they were taken over by Delta the airline is on the way out, they are giving gates away at airports around the world, flew AA to asia this trip and they are not that good either, would love to be able to go back to some good airlines. But at least I finally found a hotel with good internet here, going to try to find something for breakfast that won’t make me throw up.

      Report Post » roostercogburn  
  • kaydeebeau
    Posted on May 7, 2012 at 6:15pm

    “It soon became apparent that the public was smarter than we were.”…..best line in the story and further proof of why We the People are our best hope

    Report Post » kaydeebeau  
    • red_white_blue2
      Posted on May 7, 2012 at 7:19pm

      Absolutely Agreed-We The People–oh, and FYI to the OWS, Anarchist, Socialist, Marxist, Communist, Muslim Brotherhood—and that’s just in the White House–We are smarter! Wait and see what we do to your asses between now and the end of the year!

      Report Post » red_white_blue2  
  • clockwatcher
    Posted on May 7, 2012 at 6:15pm

    I am leaving my two tickets to my grandchildren in my will.

    Report Post » clockwatcher  
  • FreedomPurveyor
    Posted on May 7, 2012 at 6:09pm

    Just think about how amazing it is that communism created the phenomenon of commercial air travel, making it so easy for the average person to literally fly through the air and arrive at practically any destination, they actually complain about it when they get there!

    No, wait, that was capitalism

    Report Post » FreedomPurveyor  
  • babylonvi
    Posted on May 7, 2012 at 6:08pm

    Don’t worry about flying in the future, you will need a special visa to leave your assigned FEMA Zone.

    Report Post » babylonvi  
    • sweetgold
      Posted on May 7, 2012 at 11:04pm

      You may joke about FEMA passes, but with this gentleman in the white house and the type of people he has surrounded himself with, it may well come to pass. Unless we something about it on Nov 6.

      Report Post » sweetgold  
  • Stu D. Baker-Hawk
    Posted on May 7, 2012 at 5:34pm

    I believe the last time I flew a commercial airline it was the year 2004; I was returning from a one-year remote tour of duty to South Korea right before I retired from active-duty service. After putting up with all the hassles of those TSA idiots (even when I traveled in military uniform with a DoD identification card, I was pulled out of line and searched!), I said enough is enough and I haven’t flown since. I HATE what levels our country has sunk to ensure our ‘security’, and I HATE that airlines have become nothing less than flying cattle cars.

    Report Post »  
  • vortilon61
    Posted on May 7, 2012 at 5:16pm

    To all the whiners that claim airlines charge too much, I say you are clueless. If anything airlines don’t charge near enough when you figure the cost of fuel has quadrupled in the last 20 years. Not to mention the additional taxes and fees the airlines have pay as well. The cost of a ticket has stayed about the same for the last 25 years. It’s a wonder any of the airlines can make a dime.

    Report Post »  
    • Kneale
      Posted on May 7, 2012 at 5:41pm

      I agree but the value of airline travel has gone down too. Airports have become the bus stations of this century and the TSA have become the perverts that hang around them.

      Report Post » Kneale  
    • neidermeyer
      Posted on May 7, 2012 at 6:12pm

      Everything has quadrupled (or at least doubled) in the last 20-25 years ,, not just fuel . The service received now is pitiful compared to back them, no meals or just snacks ,, pay for any beverage , TSA , turboprops piloted by people earning so little they need to carpool to the airport (Some make under $20,000/year) …

      I just wish I had a pair of those tickets ,, I’d make a profession of finding people to fly as the companion fare ..

      Report Post » neidermeyer  
    • pissantno.10
      Posted on May 7, 2012 at 8:48pm

      ya i rember when the lower class could not fly, oh for the good old days

      Report Post »  
    • F_This
      Posted on May 7, 2012 at 9:03pm

      All because of your friggin government and it’s overbearing regulations.

      Report Post »  
  • SammyStutsfruckle
    Posted on May 7, 2012 at 5:00pm

    Good. American Airlines was and is a sucky airline that should have went out of business years ago.

    Report Post » SammyStutsfruckle  
  • Rohawk
    Posted on May 7, 2012 at 4:48pm

    I don’t see what the problem is! With all the radiation from the naked x-ray machine all the frequent fliers should be dead soon! If they opt for the pat downs the STDs will kill them! (boyI glad I’ve only flown once, Minneaplis o Chcago Mway, and it was 20 years ago when airlines still liked their custumers)

    Report Post »  
  • dianna9490
    Posted on May 7, 2012 at 4:44pm

    All Americans need to STOP FLYING – call the airlines and tell them – as long as the TSA IS MOLESTING PEOPLE IN YOUR TERMINALS I WILL DRIVE! Hit them in the pocket book – and WATCH HOW THE TSA DISAPPEARS! WATCH THE AIRLINES WILL DISAPPEAR! That way only foreigners can be on their planes in case something happens – NO AMERICANS WILL BE ON THEM!
    Oh, Shucks then more OBAMA MONEY WILL HAVE TO BE PRINTED TO BAIL THEM OUT – MAYBE WE COULD JUST GIVE THEM SOME MONOPOLY MONEY – YOU KNOW ITS ABOUT THE SAME!

    Report Post »  
    • TheBurningTruth
      Posted on May 7, 2012 at 5:47pm

      You sound like you could use Mr. Garrison’s “The Thing” transporter from the South Park Episode “Flexi-Grips”. It was cheap, light, super high mileage and very fast (well over 100mph). The only problem was the control mechanism…

      Report Post » TheBurningTruth  
  • Listen_then_think
    Posted on May 7, 2012 at 4:31pm

    I will never fly American airlines again. Flew twice and both times were dismal. On our 15 year wedding anniversary we flew to St. Thomas because we never really had a honeymoon due to school. One the way through Dallas, the plane broke, they had mechanics on and off the plane for 2 hours. Then some lightning moved in and delayed flights about 20 min. We got to puerto rico after the airport closed and the last flight to ST Thomas was long gone. American said it was due to the weather so screw you. That was a total lie since the plane broke and they worked on it for 2 hours. They didn’t comp us anything! Not hotel, no voucher for food in the airport, not even an I’m sorry. We slept on the airport floor. Second time almost exact duplicate of first time except they didn’t have a pilot for the flight from Dallas to SLC. It was either sleep on the floor again or fly to jackson hole then fly out of jackson. Again American air said screw you! No comp, no voucher, no im sorry. I tell everyone never fly American and I never will again either.

    Report Post »  
    • lukerw
      Posted on May 7, 2012 at 4:50pm

      For years… I flew on about every AirLine… all over the World: there is No Utopia and you are lucky if you get to where you wanted to go! The Best was the fights to Luxemberg that usually ended in France; The Worst was a Highway Landing in Australia!

      Report Post » lukerw  
  • lukerw
    Posted on May 7, 2012 at 4:21pm

    Taxes… Purchases… Profits… People will alter their behavior to take advantage of Systems that offer something better: creating the Focus upon LoopHoles!

    Report Post » lukerw  
  • tckid17
    Posted on May 7, 2012 at 4:10pm

    It is hard to shed a tear for Airlines now that they charge for everything. It is just like casinos losing money to bettors, too bad so sad!(NOT!)

    Report Post »  
  • Steve28
    Posted on May 7, 2012 at 3:52pm

    Yes, American Airlines confiscated my dive light from my carry on and never gave it back. They also gave me hassles numerous times. They are getting what they deserve good riddings!

    Report Post »  
    • Marci
      Posted on May 7, 2012 at 4:17pm

      I’d countersue them for harassment. They offered up the lifetime flight, if there are no disclaimers, then tough. No doubt the rest of the passengers are picking up the tab, but AA should have known better. And as their prices go through the roof due to other economic factors including their stupid marketing gimmick, the free market will take care of them. They will go extinct as they should.

      Report Post » Marci  
  • cristo52
    Posted on May 7, 2012 at 3:51pm

    The big draw back was when they started charging $40,000 for the second bag.

    Report Post »  
  • Brooke Lorren
    Posted on May 7, 2012 at 3:37pm

    The first flight that I took was across the country as I went to boot camp. It was a great experience. The flight attendants went up and down the aisle several times offering soda and snacks. For several years after that, I enjoyed flying.

    The last few years that I flew, I hated it. I would be starving by the time I arrived at my destination. You have to get to the airport extra early, then they don’t give you anything to eat on the flight. It didn‘t help that I usually got on a shuttle after that and didn’t get to eat until a couple of hours later, but flying was a miserable experience.

    The last time I flew (I won’t fly any more unless I can score a private jet, which I can’t afford, in order to avoid the TSA) I upgraded to first class one way, because otherwise I would have missed my flight. That was an okay flight. The coach leg was not very pleasant though.

    I drive everywhere now. It takes a little bit longer, but costs about the same price for a family of four, and is a lot more pleasant of an experience.

    Report Post »  
    • contkmi
      Posted on May 7, 2012 at 4:55pm

      I’m thinking there are going to be many people that feel as you do. Flying isn’t a right, it’s a luxury. People are put off by fees and more fees and being groped by predators.

      I’ve started to look into Amtrak. Yeah, I know, it’s a fed.gov thing, but it’s cheaper usually, and way more fun.

      Report Post » contkmi  
    • Brooke Lorren
      Posted on May 7, 2012 at 7:00pm

      We’ve considered AmTrak before as well. Unfortunately, they don’t have an Amtrak station near our house, so we’d have to drive a couple of hours to get to the station. Would be nice to try though.

      Report Post »  
    • pissantno.10
      Posted on May 7, 2012 at 8:53pm

      amtrack i work on the rail road no way

      Report Post »  
    • RJJinGadsden
      Posted on May 7, 2012 at 11:22pm

      BROOKE LORREN, I’ve ridden Amtrak before and it really sucks. Nothing at all like a European train that I used to enjoy quite a bit. If you do take Amtrak make certain you bring plenty of water and your own food.

      Report Post » RJJinGadsden  
  • Locked
    Posted on May 7, 2012 at 3:34pm

    Very interesting article, and I wouldn‘t have read it if it wasn’t on here. I’d love to see more articles like this one linked on the site.

    Report Post »  
  • Angel_light
    Posted on May 7, 2012 at 3:23pm

    hey AAirlines too bad it’s your fault. didn’t think things through too well now did we

    Report Post » Angel_light  
  • sjohn70037
    Posted on May 7, 2012 at 3:22pm

    Living in Dallas I have had to travel AA for business over the last several decades to get places Southwest Airlines couldn’t get me. I HATE American Airlines.

    I can give you countless experiences I’ve had with their arrogance, abuse, poor performance, etc. Most of which I blame on the unions. The pilots don’t like the flight attendants, the flight attendants don’t like the mechanics, the mechanics don’t like the baggage handlers and none of them like the customer.

    I can’t tell you what joy I am getting watching AA swirl the drain. Sheet delight. AA you deserve everything you’re now getting.

    Report Post » sjohn70037  
  • Owt_Raged
    Posted on May 7, 2012 at 3:21pm

    I bought lifetime free oil changes for my vehicle when I bought it new, for the price of about 8 regular oil changes. It‘s a great deal as I also take my car to the dealer for it’s regular manufacturer maintenance. It saves me about $30 each time I go in and has been the drive behind keeping my car serviced at the suggested intervals. Yes, I got my money’s worth just 3 years into owning the vehicle. But then the auto maker probably thought I’d only own it for 3 or 4 years. I don’t intend to buy another vehicle until I can pay cash for one.
    Perhaps AA thought that the holder of the unlimited ticket would be bringing friends or persuading people to fly AA because they could fly for free.
    If you give someone a service like this, don’t be surprised if they use it.

    Report Post » Owt_Raged  
  • Snowleopard {gallery of cat folks}
    Posted on May 7, 2012 at 2:59pm

    AAirlines needs to live up to their end of the bargain; a legally contracted deal is just that – LEGAL, the pressure they put these people under is cooersion in the purest of forms worthy of thugs from the unions.

    Report Post » Snowleopard {gallery of cat folks}  
  • Kinnison
    Posted on May 7, 2012 at 2:55pm

    U.S. airlines have clawed their way to the bottom of the heap. It is sad to see the nation that pioneered air travel sink so low. Dispirited airline staff provide lousy service. Most carriers have discontinued any food service at all in coach for coast-to-coast flights, so passengers either have to bring their own food or subsist on a tiny packet of peanuts or pretzels for 4 or 5 hours. My expatriate daughter lives and works in Germany and we visit her several times a year, while she comes home for Christmas vacation. We have tallied so many horror stories of airline indifference and mismanagement that we now plan to fly foreign carriers. Once, a long time ago, I flew across South Vietnam in a military C-130 cargo plane. Also on board were about 50 Hmong tribesmen with piglets and chickens in handmade wooden cages, and one large water buffalo who had been “sedated” with 3 o or 4 quarts of Ba Mai Beer. It was a memorable if uncomfortable flight. (The water buffalo was not housebroken…) Levis, T-shirts and flip-flpos are now standard dress in coach. Given the state of U.S. airlines and their abysmal service I figure it is only a matter of time before coach passengers are trying to stow their piglets and chickens in the overhead bins, as on many 3rd-world world rural busses.

    Report Post »  
  • love the kids
    Posted on May 7, 2012 at 2:38pm

    AA needs to refund the purchase price or follow through with the agreement. Have you ever tried to get a free ticket on AA frequent flyer miles? They will never give a free ticket out. We went to Hawaii several times and found that the flights can only be booked 1 year in advanced, but if you call 1 year in advance, they are already full.

    Report Post »  
    • HornsFan96
      Posted on May 7, 2012 at 2:47pm

      OK, that’s just not true.

      Yes, it is more difficult than ever to get the free tickets from frequent flyer miles. But really, the problem is only if you insist upon getting the cheapest tickets, which cost 12K miles. I’ve booked three trips in the last two years at the 25K per ticket rate, and gotten business class tickets that were reserved only 2 months in advance.

      Report Post »  
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