>> was what this guy did against the rules? How can you argue creating fake identities and reserving seats for non-existing passengers is not?

Because prior to purchasing the pass, he asked about having a non-human companion and AA offered up Yo-Yo Ma and his cello in a separate, reserved seat as an acceptable example. Because the CEO had written a personal letter thanking Mr. Rothstein and promising to continuing to honor the program. Because every non-human reservation he made was accepted and booked by an AA reservation agent -- not an internet booking or 3rd party travel agent.

Wait, do I understand your argument correctly? Fraud is acceptable because an AA reservation agent didn't realize the identity of the passenger was fake?

If I commit fraud against you, and you don't know it's fraud, it's your fault for you not immediately detecting it?

He was warned in 2004 against fake people, so he started using friends' names -- people who also didn't fly. He was terminated in 2008 after continuing to commit fraud, despite being warned.

>> do I understand your argument correctly?

No. My argument (one of my arguments) is that the company cannot change the definition of what it considers to be fraud after the contract is signed.

Prior to purchasing the pass, Mr. Rothstein asked if it was acceptable to use the companion seat for non-human passengers, i.e. just to keep his luggage. AA said it was ok, and it promoted Mr. Ma and his cello as an example of the practice. I am not privy to the logistics of how Mr. Ma books his cello's reservations, what name he uses when booking a seat for the cello, or how his situation differs from Mr. Rothstein's. In any case, post-purchase, AA changed its mind and decided that when Mr. Rothstein did this, it was fraud.

And the judge agreed with AA. I just happen to disagree with the company and the judge, based on its previous position on the matter.

>> you don't know it's fraud

But AA did know what he was doing. The reservation was named "Bag." Gate agents checked him and his bag (not a person) in, hundreds of times. The flight attendants, equipped with passenger manifests, also counted a non-person in order to match up, hundreds of times. And as stated above, he specifically asked about the practice, and was granted permission, before he even bought the pass.

The outline of what's allowable is what's written in the contract, not what some AA reservation agent tells him.

Again, if a bank teller says it's legal to rob the bank, and you rob the bank, are you off the hook? Of course not. The terms of the contract are...spelled out in the contract.

Even if AA tolerated it for a while, by 2004 it did not, and he kept up with his shenanagins despite being warned.

I generally despise airlines but this guy was in the wrong.

Except it absolutely was not written into the contract. The contract had a clause disallowing fraudulent use - but did not state or define what fraudulent use was.

So your position is every potential permutation of fraud must be explicitly enumerated or its allowed?

And that making up fake people and booking reservations he never intended to use does not comport with any definition of fraud?

That's not how contracts work.

It's OK to admit this guy defrauded the airline and violated the terms of his contract without liking airlines or their business practices.