A cautionary tale of selling your miles

Introduction

This topic isn’t discussed by any blogs, especially the big blogs, because it’s a well known no-no; however, some people do it on the down low anyway.  Here’s the reader’s story (I’ve removed any personal info) so that it’s a wake-up call for anyone doing it now or planning on doing it.  They had booked 2 flights for people in 2017 and nothing in 2018.

 

First email:

We have reason to believe that the activity listed below violates one or more of the AAdvantage program conditions. This includes, but is not limited to, prohibition of purchase, sale, or barter of mileage credit and/or award tickets. As a result, American Airlines has suspended your AAdvantage membership privileges and may terminate your account as a result of our findings. We are in the process of completing the investigation into this matter, and I would like to hear the events as they occurred from your perspective. Please respond to this message by [date] with complete and accurate information regarding the activity listed below:
All awards issued from account in 2017 and 2018
Required Information:
Passenger names
Origin and destination cities on the travel itineraries
Caller name and phone number, for all calls made regarding all reservations
Purchaser name(s) (individual, company and/or website), including:
· Copy of any advertisements to which you responded offering to purchase/broker the use of your AAdvantage miles
Purchaser contact information, such as:
· Mailing address
· Email address
· Telephone number
· Website profile name
Your statement fully disclosing the details surrounding the sale/barter transactions referenced above
Copy of all communication between yourself and the purchaser(s)
Documentation that you received payment
To protect and retain the integrity of the AAdvantage program, it is vital that firm action be taken as a result of any violation of the AAdvantage Program Conditions, whether intentional or not. Failure to respond completely and accurately by [date] will result in the termination of your AAdvantage membership and all its benefits, including all remaining AAdvantage miles in your account, any unused award tickets, and any other accounts you might have. We hope to hear from you soon.

The reader sent in the required info and got this back:

Thank you for your cooperation with this investigation. After reviewing your case with management, we have determined to release the suspension of your AAdvantage account, with the following conditions:

1. You agree to abide by all General AAdvantage Program Conditions.
2. You understand that any future violation of the General AAdvantage Program Conditions will result in the immediate termination of your AAdvantage membership benefits, including all miles and unused award tickets.

We have assessed a reduced penalty of XXX miles (half of the amount of mileage involved in the violations) due to the losses experienced by American Airlines due to these violations.

We hope to have your future cooperation.

 

Conclusion

On the bright side, at least they didn’t terminate the reader’s account.  As you can see, you needn’t do that many sales; they still figured this out after 2 sales (most likely because the same client is flying on multiple AA accounts.)  Moral of story – don’t sell  your miles.

6 comments on “A cautionary tale of selling your miles

  1. Got a similar letter back in the late 80’s or early 90’s from AA. I had sold 100’s of thousand of miles. So many I bought a new car. I admitted I had done so and begged forgiveness. I was a bit naive. AA did erase all my lifetime miles, but let me keep the active miles. I had about 2MM miles at the highest, but now they only show my lifetime at about 600,000. I learned my lesson.

  2. Nothing new with this article. AA has always been strict. And yes, it’s been discussed on flyertalk, Reddit, and Slickdeals.

  3. What kind of idiot would actually provide all that data to AA? I can only assume there were millions of AA miles at stake…

  4. I’ve heard that AA is one of the more aggressive programs when it comes to these things. Vinh, do you have any perspective on whether that seems to be true and/or other aggressive brands?

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