A dedicated traveler had his lifetime offer of complimentary first-class flights taken away after his trips led to significant financial loss for the airline.
For most, a lifetime free ticket for anything is a transformative offer, and this is particularly true for air travel. However, as American Airlines discovered, a lifetime free ticket isn’t just an enticing proposition—it turns out to be impractical.
In a bid to generate immediate revenue in 1981, American Airlines presented a deal for free first-class flights for life to anyone ready to pay $250,000 up front.
At the time, this initiative was launched by the airline to bolster its finances amidst fiscal challenges and seek a way to stabilize its economic position.
Initially, their strategy appeared successful. Sixty-six individuals acquired what was officially termed the AAirpass.
However, scrutinizing the situation reveals this to be among the worst financial decisions they could have made, largely due to an individual named Steven Rothstein.
In 1987, Rothstein bought the AAirpass and over the next 21 years, he incurred over $21 million in costs to American Airlines.
His method? Beyond the luxurious experience of first-class, it was Rothstein’s frequent flying habits that drained the airline financially.
By 2008, Rothstein had amassed 30 million miles across 10,000 flights with American Airlines, all at no cost to him.
Calculating these figures reveals how a single customer rendered the AAirpass scheme a financial burden.
Nonetheless, it took until 2008 for American Airlines to recognize the extent of losses caused by Rothstein.
Once they did, they quickly terminated his AAirpass rights mid-travel day, preventing him from boarding a flight to Bosnia.
Subsequently, American Airlines filed a lawsuit against Rothstein, although the case wasn’t about his excessive use of the AAirpass.
They accused the stockbroker of fraud, alleging he reserved seats for fictitious passengers using names like ‘Bag Rothstein’ and ‘Steven Rothstein Jr’, and booked flights with no intention of taking them.
Rothstein admitted to frequently offering his ticket to those in need during his over 20 years of free travel.
In a 2019 interview with Forbes, Rothstein shared his perspective, stating: “I gave a man in Seattle a ticket to go to his father’s funeral. I gave many people tickets to visit ill family members.
“I don’t view that as philanthropy, I view that as good deeds.”
Although American Airlines initiated legal proceedings, they and Rothstein finally resolved the matter out of court.
As for Rothstein’s current travel preference, he now chooses to fly with United Airlines.