PG: Just to be devil’s advocate again, don’t I have a right to make a reservation and then cancel it? Was he playing by the rules and just beating them at their own game or was he really violating something?
KB: There’s a very good argument that he was playing by the rules. First of all Steven Rothstein is almost computer illiterate so every reservation he ever made was on the phone with an American agent who helped him do it. So they helped him do it, they were totally aware of him doing it, and they didn’t have a problem with him doing it in fact they encouraged it.
They’d say, “Well if you’re going to fly to London there’s a storm coming why don’t you book the flight before and after just to make sure you get out in case there’s a weather problem.”
American encouraged that sort of booking. Rothstein and his lawyer would say there’s nothing in the contract that says you can’t book as many flights as you need.
PG: Let’s look at the companion ticket. Was there anything in the rules that said the companion had to be only one person?
KB: There is no definition of what a companion, so Rothstein and his lawyer argue that if the airline didn’t want him to fly with people he didn’t know very well then they should have said the companion has to be a family member or a friend.
Interestingly, the last time American did sell the AAirpass was a one-time offer in late 2004 in the Newman Marcus Christmas catalog. They offered the air pass with the companion for $5 million, none sold. But in the fine print the companion had to be a named person it couldn’t be anyone you want it you had to name the person.
PG: So Steven Rothstein’s case went to court?
KB: Yes, Steven Rothstein’s case went to court first it went to state then ended up in federal court. It went back and forth first in Rothstein’s favor then in Americans favor based on an interesting ruling by a judge last June. Rothstein’s attorney wanted to appeal that but then AMR the parent company of American filed bankruptcy in November. The result of this is that all litigation filed against them is now put on hold they’re sort of in legal limbo waiting for a resolution on that case.
One could argue with a bit of a skeptical eye that even if American loses in the end it’s a short-term win because the whole time they’re in bankruptcy Rothstein isn’t flying.
For more American Airlines history and airpass, check out:
- Peter’s Travel Tip on Flight Passes
- Peter’s CBS This Morning report on What American Airlines Job Cuts Mean for Consumers
- Peter and Terry Maxon look Behind the Scenes of American Airlines’ Bankruptcy
- Peter’s Travel Detective blog on American Airlines’ Bankruptcy, Mileage Programs & Industry Changes
By Peter Greenberg for Peter Greenberg Worldwide
