3 ms·

Okay, so let me get this straight. . . - The program starts in 1981. - One of the executives that was there from 85-94 noted right away the customers were cos

Okay, so let me get this straight. . . - The program starts in 1981. - One of the executives that was there from 85-94 noted right away the customers were costing them money. - They raised the cost in 1991 - They raised the cost again in 1994 - And finally terminated the program in 2004. The company ran this for 20 years knowing full well since its inception that it was costing the company money and did nothing about it? I have absolutely ZERO remorse for what the customers got away with, none. The fact they had to play dirty pool to revoke them just shows how incompetent the executives were that were running the company. It's staggering to think they let a handful of customers practically bleed the company dry, while continuing to sell these in a sad attempt to generate revenue for the company.

deleted 10y ago
[deleted]
ryao 10y ago
I am not a lawyer, but these tickets look like a pyramid scheme to me. If I were an attorney and worked for American Airlines, I would consider claiming it was illegal for them to offer that to get out of it. I know that courts tend not to let companies out of bad deals, so that might make a bad situation worse. It reminds me of the guy who has a life insurance policy that allows him to invest the amount covered in stocks at prices 1 week in the past knowing what the future performance would've. The insurance company that purchased the one that issued that really wants to get out of it, but they have been unsuccessful. I recall that it is estimated that by the time he dies, his estate will be worth more than the insurance company due to that policy. At least American Airlines can take consolation in the fact that the total losses from their mistake will be limited by the ticket holders eventually dying naturally. In that insurance company's situation, the policy holders dying will ruin them.
- idbehold 10y ago
  Do you have a link to the story about the insurance policy? Sound like a fun read.
  - rahimnathwani 10y ago
    http://www.actuarialpost.co.uk/article/known-price-arbitrage-contracts:-aviva-is-still-in-denial-7964.htm http://www.actuarialpost.co.uk/article/known-price-arbitrage... http://www.independent.co.uk/news/business/news/max-herve-george-the-man-fighting-a-merciless-legal-war-against-insurance-giant-aviva-10168427.html http://www.independent.co.uk/news/business/news/max-herve-ge...
- philwelch 10y ago
  His estate (or beneficiary) should just assume ownership of the insurance company then. Insurance is a good business, as long as you don't have any other policies like that on the books.
  - ryao 10y ago
    They do, but none are as large as liability as his as he is very good at maximizing it.

deleted 10y ago

[deleted]

ryao 10y ago

I am not a lawyer, but these tickets look like a pyramid scheme to me. If I were an attorney and worked for American Airlines, I would consider claiming it was illegal for them to offer that to get out of it. I know that courts tend not to let companies out of bad deals, so that might make a bad situation worse. It reminds me of the guy who has a life insurance policy that allows him to invest the amount covered in stocks at prices 1 week in the past knowing what the future performance would've. The insurance company that purchased the one that issued that really wants to get out of it, but they have been unsuccessful. I recall that it is estimated that by the time he dies, his estate will be worth more than the insurance company due to that policy. At least American Airlines can take consolation in the fact that the total losses from their mistake will be limited by the ticket holders eventually dying naturally. In that insurance company's situation, the policy holders dying will ruin them.

idbehold 10y ago
Do you have a link to the story about the insurance policy? Sound like a fun read.
- rahimnathwani 10y ago
  http://www.actuarialpost.co.uk/article/known-price-arbitrage-contracts:-aviva-is-still-in-denial-7964.htm http://www.actuarialpost.co.uk/article/known-price-arbitrage... http://www.independent.co.uk/news/business/news/max-herve-george-the-man-fighting-a-merciless-legal-war-against-insurance-giant-aviva-10168427.html http://www.independent.co.uk/news/business/news/max-herve-ge...
philwelch 10y ago
His estate (or beneficiary) should just assume ownership of the insurance company then. Insurance is a good business, as long as you don't have any other policies like that on the books.
- ryao 10y ago
  They do, but none are as large as liability as his as he is very good at maximizing it.