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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
by 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 agoDo you have a link to the story about the insurance policy? Sound like a fun read.
- rahimnathwani 10y agohttp://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 agoHis 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 agoThey do, but none are as large as liability as his as he is very good at maximizing it.