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It seems like AA had reasonable issues with how the pass was used, but it was pretty clear they were simply looking for justifications to cancel it. A warning a
by danielfoster 7y ago
It seems like AA had reasonable issues with how the pass was used, but it was pretty clear they were simply looking for justifications to cancel it. A warning and clarification of terms would have been sufficient.
But I'm sure cancelling these passes reduced expenses-- at least on paper.
- SOLAR_FIELDS 7y agoThey’re the same issue as pensions - liabilities that can’t be funded because there is no theoretical upper bound (even if there is a practical one). An absolute nightmare for bean counters.
- brianpgordon 7y agoWell, there's got to be a dollar amount that it's worth to them to have fully funded liabilities, and if it's as high as you seem to be saying then I'm pretty sure they could have gone to an investment bank or insurer or something and gotten them to write a custom product to cap their liability. I thought a good part of investment banking business consisted of corporate finance deals to shift miscellaneous risks like this off their clients' books. My guess is that it's just the sheer cost that American balked at, not the uncertainty in exactly how much he would cost them.