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Fly Elite Class review: Travel Agency 4

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8:46 am EDT
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PREMISE OF APPEAL:

I’m presenting this complaint l based upon the fact that three airline tickets which I purchased from Fly Elite Class travel agency of South San Francisco for flights on Lufthansa Airlines and British Airways were cancelled out BY THE RESPECTIVE AIRLINES on the grounds that they were procured through inappropriate means and resulted in their subsequent cancellation.

While I was never informed of the method of procurement and any associated risks involved, Fly Elite Class had full knowledge that the tickets could be cancelled out at any time by the airlines.

DETAILED HISTORY

Over the past few years I’ve purchased a number of airline tickets from the Fly Elite Class travel agency at 90 South Spruce Avenue, Suite H, South San Francisco, California. The company lists their official business name appearing on my Chase Visa Explorer card statement as First Class Choice, Inc. but also uses the DBA of Top Business Class. I was always pleased with their quality customer service and recommended them to friends and family.

The Lufthansa Airlines and British Airways tickets in question were purchased between November 2015 and March 2016 and paid in full, directly to Fly Elite Class.

On January 20, 2016 I retrieved a phone message on my answering machine from Lufthansa’s Fraud Prevention Specialist, requesting that I get back to them at my earliest convenience. I immediately returned the phone call and was asked a number of questions, including: who I bought my Lufthansa ticket from, how much I paid for it and whether frequent flyer points were used in the transaction. I answered each question as requested, was put on hold and then informed that the ticket was being cancelled out on me due to “Irregularities in the method of purchase”. I was basically out the cost of a business class ticket.

Upon cancellation of my Lufthansa ticket I was warned of the possibility that other tickets in my possession were most probably procured by Fly Elite Class using the same method, the brokering of third party frequent flyer points, a process I was totally unfamiliar with, a practice against all rules and regulations of most major airline carries around the world.

Thus, my concern was with the security of upcoming British Airways flights. During our phone conversation it was strongly advised to immediately contact British Airways. In my first contact with British Airways, the agent assured me on January 21, 2016 that the tickets bore my name and were fine, and that there was no problem associated with using them. This presented the illusion that all was in order.

To protect myself and suspecting that this could not be the case, I requested to speak with someone at a higher level. Through my conversation with a supervisor other discussions ensued. This conversation was recorded and a transcript tape is most probably available regarding four points which greatly surprised me:

• I was told that the mileage points necessary to procure these above-mentioned British Airways tickets came from my account. I never opened an Avios frequent flyer account with British Airways nor have I ever flown enough British flights to have accumulated such a large number of points necessary to procure first and business class tickets. The account was registered in my name in May 2014 by Fly Elite Class. He revealed that Fly Elite Class most probably set up an account in my name, after having deposited the necessary number of brokered third party frequent flyer points. On October 1, 2015, 180, 000 points were transferred;

• He also told me that there was an American Express account set up under my name. In fact my last possession of an American Express credit card with Delta was closed many years ago;

• A false email address was also set up;

• British Airways office had received a phone call from an unidentified caller saying that he was me. When unable to answer security questions the individual immediately hung up.

These actions taken by Fly Elite Class were done so without my knowledge or approval. They were in fact using my identity to circumvent the rules and regulations set forth by British Airways, Lufthansa Airlines and all other major international air carriers. The above mentioned points facilitated British Airways to initiate their internal investigation on the actions taken by Fly Elite Class ) and the cancellation of my flightswith them.

At this point on January 29, 2016, I initiated my claim with VISA and submitted my documents to contest Fly Elite Class’ charges for the cancelled airline tickets.

EVIDENCE OF IMPROPER BUSINESS PRACTICES

On numerous occasions my first Fly Elite Class travel agent confirmed to me that the company was offering lower- priced tickets as a wholesale travel consolidator. He also stated that if I didn’t accept frequent flyer points for flights he could negotiate favorable pricing with the airlines. Never was I informed that I was getting my tickets from brokered third party frequent flyer points. This at face value sounded fair and equitable.

When I purchased the tickets in question, Fly Elite Class mentioned in its Ticket Release Form that the tickets were "issued using corporate points from Fly Elite Class". Corporate points means literally points owned by the corporation to process a transaction. In fact, according to Lufthansa's Fraud Department the information provided by Fly Elite Class was misleading because it did not use corporate points but brokered third party points.

Lufthansa notes that my ticket was issued by Fly Elite Class in violation of the rules and regulations established by Lufthansa and most other airlines. They pointed out the universality of this prohibition among major international carriers and that every frequent flyer plan specifically prohibits selling, bartering or brokering miles/points in this manner. This practice stands the risk of ticket cancellation.

A MATTER OF INTEGRITY

I question the ethics under which Fly Elite Class operates. Upon learning that my Lufthansa ticket was cancelled, I immediately phoned my agent . I was first reprimanded in the strongest terms possible for even speaking with the airline. Following my agent's conversation with his boss and owner, they insisted in no uncertain terms that they wanted me to follow along with their rehearsed script in a three-way telephone conversation with Lufthansa. I was to call Lufthansa as my brother and state he’s schizophrenic and acted out of nature when it came to the purchase of his tickets. I immediately refused to play along with their lies and deception and to defraud Lufthansa, even at the loss of my ticket.

BEYOND MY CASE – AN ISSUE AFFECTING OTHERS

Based on my history and those stories offered by a multitude of other individuals citing their stories in reputable online travel sites as Travelocity.com YELP, Ripoff s Reports, Site Jabber, Yellowbot.com, Trust Piolot.com, there’s a repeated themes – “my ticket was cancelled on me”, “the airline refused me the right to board, “‘the air marshals pulled me off the plane, etc. Each one of the hundreds of stories substantiates the other.

COMMENTS FROM MY LAWYER

After having consulted my lawyer, I was provided with several legal statues:
• NY General Business Law § 349: Deceptive Practices. GBL § 349 is a broad, remedial statute... directed towards giving consumers a powerful remedy. The elements of a violation of ( GBL § 349 ) are (1) proof that the practice was deceptive or misleading in a material respect and (2) proof that plaintiff was injured...There is no requirement under GBL § 349 that plaintiff prove that defendant's practices and acts were intentional, fraudulent or even reckless. Nor does plaintiff have to prove reliance upon defendant's deceptive practices. BNI New York Ltd. v. DeSanto, 177 Misc. 2d 9, 14-15, 675 N.Y.S. 2d 753 ( 1998 ). This applies to the Fly Elite Class’ ticket release form mentioning that they were using corporate points.

• NY General Business Law § 350: False Advertising. The term “false advertising” means advertising, including labeling, of a commodity, or of the kind, character, terms or conditions of any employment opportunity if such advertising is misleading in a material respect.  In determining whether any advertising is misleading, there shall be taken into account (among other things) not only representations made by statement, word, design, device, sound or any combination thereof, but also the extent to which the advertising fails to reveal facts material in the light of such representations with respect to the commodity or employment to which the advertising relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual. This applies to the fact that Fly Elite Class mentioned on their website that they were authorized sales agents of Lufthansa while they were not, and “displayed trademarked logos and images belonging to Lufthansa without authorization in an effort to portray a legitimate agent/principal relationship” – Monica Stadelmann.

• NY General Obligations Law § 380-s: Identity Theft. No person, firm, partnership, corporation, or association or employee thereof shall knowingly and with the intent to defraud, obtain, possess, transfer, use or attempt to obtain, possess transfer, or use credit, goods, services or anything else of value in the name of another person without his or her consent. This applies to establishing without my knowledge or approval a British Airways frequent flyer account and email address.

MY REPUDIATION OF FLY ELITE CLASS’ CLAIMS
• In Fly Elite Class’ April 28 appeal they state that it was I who cancelled the above mentioned flights on Lufthansa Airlines and British Airways. I state now and in any court of law that this is far from the truth. The simple question I pose is, “after having been billed and paid in full for tickets, why would I want the financial loss of close to $10, 000 as well as to submit myself to months of investigation, waiting and uncertainty?” I had nothing to gain in cancelling these flights.

Despite Fly Elite Classes’ claim in their appeal, it was Lufthansa Airlines and British Airways’ decision to cancel my tickets, not mine.

• I did agree to the option provided me as described in their Ticket Release Form for the procurement of tickets through corporate points being led to believe that these points were owned by the corporation. Lufthansa revealed later that they were not corporate points but bartered third party frequent flyer points.

IN SUMMARY:

When a company saddles a customer without their full knowledge with ill-gotten tickets, and when this company uses without consent a customer's identity to procure these tickets, this is not only an irregular practice but it calls into question the legality of these activities.

4 comments
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Passport Premiere
US
Jan 24, 2017 12:51 pm EST

Howard...Thanks for taking the time to share. I understand your frustration with the agency, but both airlines DON'T HAVE CLEAN HANDS EITHER. Specifically, your complaint references "Monica Stadelmanm' at Lufthansa. She's been deceiving travelers for nearly two decades, claiming fictitious losses to improperly boost revenue. I'm not an agent, but I'm VERY FAMILIAR with airline deception as well as the lack of regulation/oversight around their collection practices.
A couple of questions
A) You mention your purchase was in Nov 2015 & March 2016? Where were you flying to?
B) What was the travel dates for each trip (& which airline was used for each?)

Destination & travel date data is CRITICAL in your claim against both airlines. It will help in determining
A) The 12 month low for each trip. What was the lowest both British Airways & Lufthansa sold business class seats for on your route in both 2015 & 2016. This determines how the carriers truly value their business seats. Our records show the 12 month low in 2015/2016 between SFO & Europe was $1, 885 with both British Airways & Lufthansa. Did some travelers pay more than $1, 885? A few did, but not enough to fill business seats on all flights. If you didn't run your search on the right day, you may have found biz class fares of $5, 000 or more on each carriers website. THIS IS WHAT MADE YOU SEARCH & FIND "FLY ELITE TRAVEL"

You didn't choose "FLY ELITE TRAVEL" because they're nice people or their superior service. You did it because both British Airways & Lufthansa MADE YOU DO it by showing you excessive business fares on their own websites. This induced you to find a mileage broker willing to break mileage rules and sell you a mileage ticket. FLY ELITE DIDN'T DISCLOSE how they were driving value, so shame on them for that. Both BA & Lufthansa knew this was going to happen and laid a trap for you to fall into . They are well aware MOST FLYERS WILL NOT pay $5000 + business fares between SFO & Europe, but they'll sell the broker the mileage only to cancel the ticket at a later date. Eventually, they'll fill the seats by slashing BIZ fares to $1, 885 which is what happened

Your anger & complaint should be with both airlines (BA & Lufthansa) for manipulating the market, as well as the lack of oversight/regulation governing air ticket sales. It really is the "wild west"

B) Specific flights purchased- If filing a claim against both carriers, use discovery for ticket copies of every business passenger on the exact flights you purchased. I think you'll find both BA/Lufthansa were paid MUCH MORE by selling miles to the likes of FLY ELITE than they were selling airline tickets for cash. Remember, airlines are in the business of selling miles to institutions like banks. The number of miles required to pull off a round trip BIZ class ticket to Europe has a cash value FAR GREATER than $1, 885 (12 month low in 2015/2016).

You were used as a "ponn" .Sell miles to FLY ELITE, have you buy the miles for business travel to Europe. Then, both BA & Lufthansa claim your mileage ticket is a "rule violation" and cancel your ticket though they still profited from the mileage sale. They're WELL AWARE the miles will likely be transferred/sold when they sold them. Then, they sell your seat for LESS than they received via the mileage transaction.

It a system lacking oversight filled with deception, and needs to be stopped. As I said at the beginning, Monica Stadelmann has been running this scam for Lufthansa since at least 2001 & perhaps in the 1990's.

Shouldn't you be able to just buy a ticket with the airline directly? In theory, yes but carriers continue to manipulate business class fare values with prices very few travelers pay. Lufthansa and BA put you in this situation by showing you excessive fares only to sell the same seat to other flyers for FAR LESS.

I hope you take action!

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Gharlic
US
Nov 11, 2017 11:04 am EST

Wow, you are seriously angry at the airlines, and I share some of your concerns, but your claims that airlines MADE people book fraudulently are laughable. The only party here that deserves blame is Fly Elite. If anything the airlines hardline fraud policies are justified by companies like Fly Elite deliberately defrauding them.

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Sheronda Wilso
US
Nov 30, 2017 12:08 am EST
Replying to comment of Gharlic

Thanks for starting a dialog. The "fraud" you mention is actually being perpetrated by airlines (Lufthansa in this case) on the public. You assume there is an active market of flyers ALWAYS WILLING TO OVERPAY 6K + for business. In reality, fewer than 20% of all flyers OVERPAY more than 90% of the time. Think about that for a second. Lufthansa (& other airlines) realize they've lost premium cabin pricing power . Airline sales data indicates very few flyers pay 6K + for BIZ CLASS bought 30 days in advance. The carrier knows it's GROSSLY OVERVALUING its seats but does it anyway. $6K + BIZ fares are based on pre-recession concepts of value, long gone regardless of how high equity markets climb.

Airlines are empowered by DOT to increase fares are seats are sold, & competition is supposed to keep airline sales tactics in tact. Just one problem, airlines no longer compete. Airlines are a legalized oligopoly, created via mergers with DOJ blessing and now operate with very few regulations.

Unfortunately, airlines continue to manipulate flyers like Howard with fares it knows very few flyers ever pay. Howard made poor choices based on this the airlines deception enabling the airline to profit.

Remember, multiple travelers need to be paying the "FULL FARE" for airlines to base a damage claims. In reality, very few are which creates the fraud

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Sheronda Wilso
US
Oct 31, 2017 8:43 pm EDT

Here's a VIDEO of your experience and how it could have been avoided. Watch & LEARN!

https://youtu.be/mpDZZu18Hpw