Non Rev question

[Bart Starr]

Hello all -

I am a Registered Companion who also regularly flies AA (coach) on paid tickets for work. On more than one occasion I have been stuck in 32E while seats are still available in business or first, which leads me to the question: Can I non-rev if I have already purchased a non-refundable ticket for the same flight? My client(s) would have already paid for the ticket, so AA still receives the revenue, and then some if I move up a cabin. Would the return leg still be valid on the paid ticket? Is this legit?

 

[jersey777]

Hello all -

I am a Registered Companion who also regularly flies AA (coach) on paid tickets for work. On more than one occasion I have been stuck in 32E while seats are still available in business or first, which leads me to the question: Can I non-rev if I have already purchased a non-refundable ticket for the same flight? My client(s) would have already paid for the ticket, so AA still receives the revenue, and then some if I move up a cabin. Would the return leg still be valid on the paid ticket? Is this legit?

"You may not use space available passes if you have already booked travel using AAdvantage Miles, an AA20, or any revenue ticket on the same day between the same cities."


This is against the rules. Sorry.

 

[Bart Starr]

O.K., thanks. Glad I asked!

 

[eolesen]

It's a great way to lose your passes and that of your employee partner... AA has software which locates duplicate bookings, including a mismatch between a paid booking and a staff travel booking...

 

[Bart Starr]

Absolutely, which is exactly why I asked. I have always played by the rules, it is a great perk that I would not jeopardize. It's too bad though, the company could make money off me twice. So it goes...

 

[WorldTraveler]

to add... pass benefits are, by IRS regs, for personal travel only and are only tax free if they are used on a standby basis... I think you realize that... but there is nothing that says that at some point the IRS will come after pass benefits and try to tax them. Airlines vigorously ensure pass benefits are properly used because if their tax free status is lost or if employees have to pay taxes on them, the value diminishes dramatically - which means airlines would have to pay their employees more. There are aot of incentives for airlines and their employees to make sure pass benefits remain as useable as they can be given the high loads airlines carry today.

 

[jimntx]

Absolutely, which is exactly why I asked. I have always played by the rules, it is a great perk that I would not jeopardize. It's too bad though, the company could make money off me twice. So it goes...

The reason for the rule is twofold...inventory management is one. The other is the fact that others, in the past, did what you proposed to do. If they were able to get on the plane as a non-rev, they then asked for refund of the pos space ticket.

 

[eolesen]

to add... pass benefits are, by IRS regs, for personal travel only and are only tax free if they are used on a standby basis...

Not so sure about the last part... AA has reserved space travelers who are charged non-rev rates but are removable with-their permission only. Those classifications are only subject to imputed income (i.e. taxed as though the Y fare for that trip is treated as added income) *if* the flight denies boarding to revenue customers. AFAIK, imputed income doesn't apply if a reserved space traveler takes the last seat in any allowed inventory (including F and J) and subsequently denies sale of that seat to a prospective customer.

 

[WorldTraveler]

Not so sure about the last part... AA has reserved space travelers who are charged non-rev rates but are removable with-their permission only. Those classifications are only subject to imputed income (i.e. taxed as though the Y fare for that trip is treated as added income) *if* the flight denies boarding to revenue customers. AFAIK, imputed income doesn't apply if a reserved space traveler takes the last seat in any allowed inventory (including F and J) and subsequently denies sale of that seat to a prospective customer.

The application of imputed income is required by the IRS if the transportation is not provided on a standby basis. AMR's interpretation is that it doesn't apply unless the flight goes full... other carriers apply imputed income any time personal transportation is given on a confirmed basis.
The IRS undoubtedly regularly asks AMR and other carriers about their travel/tax practices because there is tax at stake.... The IRS has probably given its blessing to AMRs application of imputed value tax. But in general the IRS says that there are tax implications if personal transportation is not provided on a standby basis.

 

[Bart Starr]

I didn't even *think* of potential IRS implications, but glad to learn there are (for now...) none. I appreciate the input from everyone.