Steven Rothstein, a stockbroker from the U.S., bought an American Airlines AAirpass in 1987 for $250,000, giving him unlimited first-class travel for life. He also purchased a companion pass for an extra $150,000, allowing him to fly with a guest whenever he wanted. For over 20 years, Rothstein flew multiple times a month, racking up 30 million miles on 10,000 flights, reportedly costing the airline around $21 million in total.
However, in 2008, American Airlines revoked his pass and filed a lawsuit against Rothstein, accusing him of making fraudulent bookings under fake names like “Bag Rothstein” and “Steven Rothstein Jr.” The airline alleged these “speculative bookings” reserved seats for non-existent passengers, violating the terms of the AAirpass. Rothstein denied wrongdoing, stating he was only given one rule when he bought the pass: not to let others use it. He even turned down an offer of $5,000 a week to lend out his pass.
American Airlines originally launched the AAirpass in 1981 as a membership program for frequent flyers, offering unlimited first-class travel. The company’s former CEO, Bob Crandall, admitted they underestimated the public’s cleverness in maximizing the program’s benefits. Following the incident, the airline revoked several passes from other customers, including Jacques E. Vroom Jr., for similar fraudulent activity.
Rothstein sued American Airlines, claiming they breached their agreement by revoking his pass. The two parties eventually settled out of court. Today, American Airlines no longer offers the AAirpass, but it remains a legendary tale of frequent flyer perks taken to the extreme.
