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Contract Shmontract: How Ametican reneged on its $250 000 first class for life fare

Discussion in 'Newsstand' started by ahappyelite, Nov 2, 2018.

  1. ahappyelite

    ahappyelite Silver Member

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  2. Counsellor
    Original Member

    Counsellor Gold Member

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    Yep, I read about that when it happened. It looks as though AA clearly breached the contract and bought themselves a black eye in the process (the "lifetime" contract would have been subject to disavowal when AA entered bankruptcy anyway).

    I never could figure how American thought they were losing money, unless they believed they could have sold all those tickets at full price even though unsold seats in First are common. A good lawyer could have tied them up in legitimate discovery, e.g., provide documentation showing the actual loss, including any instance where a first-class fare-paying passenger was denied seating because of the "pass". Also could possibly ask the judge to reinstate the wrongfully-taken property (the pass) pending outcome of litigation. (Self-help -- "I took his property because I thought he was abusing it" -- is not normally permitted in contract cases absent a contract provision permitting such action.)

    It's not like they pulled a deal like Carl Icahn did with TWA, where he created a business in competition with TWA reselling on the Internet the tickets he got at a huge discount from TWA, one of the things that supposedly drove TWA out of business entirely (for details and discussion, google "Karabu Ticket Agreement").
    Last edited: Nov 4, 2018

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