A man who purchased a $250,000 lifetime ticket from American Airlines ended up costing the airline a staggering $21 million, but the lawsuit against him was for a different allegation.
Given the high costs of air travel, a lifetime pass is undoubtedly an invaluable asset.
Such offers are rare today, likely because of an initiative American Airlines launched in 1981.
The airline proposed a deal of free first-class tickets for life to anyone willing to pay $250,000 upfront.
At that time, American Airlines faced financial challenges and saw this scheme as a potential solution.
A total of 66 individuals purchased the lifetime pass, officially called the AAirpass, but the plan backfired for the airline.
Steven Rothstein was among those who bought the pass, ultimately costing the airline over $21 million in lost revenue.
Rothstein made extensive use of his lifetime pass, traveling 30 million miles on 10,000 flights with American Airlines.
Despite this, the airline’s lawsuit against Rothstein was not based on his extensive use of the pass.
Instead, they accused him of fraud for booking seats for fictitious passengers with names like ‘Bag Rothstein’ and ‘Steven Rothstein Jr.’
American Airlines also alleged that Rothstein booked flights without intending to take them.
The lawsuit never proceeded to court, as both parties resolved the matter out of court.
It took American Airlines years to recognize the financial impact Rothstein had on them.
In 2008, the airline revoked Rothstein’s pass during a travel day, preventing him from boarding a flight to Bosnia.
While Rothstein cost American Airlines millions, he also used his pass to assist those in need.
In a 2019 interview with Forbes, Rothstein shared: “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.”
Following his dispute with American Airlines, Rothstein now prefers flying with United Airlines.