Could “The $250,000 unlimited first class flight pass” be the worst mistake in history?
In 1987 —A guy bought a life time unlimited first class American Airlines for $250,000. He flew over 10,000 flights costing the company $21,000,000. They terminated his ticket in 2008.
It was 1981— and American Airlines were in deep shit needing some quick cash flow but interest rates were too damn high.
The new director of the company thought of what was a brilliant idea to sell a life time unlimited first class seat tickets that came with a companion ticket to who ever you want to bring along with for an extra $150,000 bringing the total to $400,000, with inflation in today’s money that’s would’ve been $1.2m— it was a bad idea*
The airline assumed that the buyers would use the ticket pass excessively but they failed to consider the super-travelers.
Steven Rothstein was one on the buyers of the ticket and boy did he use it so much that he would fly out to Paris for breakfast and lunch to dinner.