Communications with respect to this document should be sent to:
Mike Borsetti 101 California St Ste 4100 San Francisco, CA 94111 mike@borsetti.com

17 April 2015 BEFORE THE

DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Mike Borsetti

vs.
American Airlines , Inc. Docket DOT

- OST

- 201 5

-

____

C OMPLAINTCom plaint

1 BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Mike Borsetti

vs.
American Airl ines, Inc. Docket DOT

- OST

- 2015

-

____

C O MPLAINT

A. I NCOMPLETE E - TICKET EMAILS

1. When a customer purchases a ticket for either domestic or international travel from American Airlines, AA emails an “E

- Ticket Confirmation” similar to the one in Appendix 1.
2. These confirmation emails in every instance omit critical information about the ticket purchased, and, as such, do not comply with a passenger’s right to “receive a
ticket” under 14 CFR 399.83 1 , nor can they be a contract for transportation.
3. Specifically, American’s “E

- Ticket Confirmations” do not contain, among other things:

1 The only reasonable interpretation of 14 CFR 399.83 in today’s electronic ticketing environment is that the carrier is required to provide th e ticket purchaser with a complete copy of the electronic ticket record as stored in the carrier’s system.Com plaint

2

a. the fare basis and ticket designator of each segment, without which applicable far e rules cannot be retrieved, and the tariff cannot be applied (American’s tariff references “fare rule” 27 times);
b. the fare calculation line, which contains useful information such as, among other things, in which points stopover is not permitted, the

amou nt and type of surcharges levied (“S” and “Q”), whether ahigher intermediate point fare was paid, and so on, and is also required for the application of the tariff;

c. the endorsement / restrictions annotation;
d. the breakdown of taxes, fees, and “carrier

- impo sed charges” collected or paid;

e. the date and place of issue, which may determine when a ticket must be presented for refund or exchange, or the jurisdiction of claims related to the ticket;
f. “not valid before” and “not valid after” dates.
4. American’s incomplete “E

- Ticket Confirmations” further causes direct consumer harm, as explained below in ¶ 9.

B. O VERCHARGING OF G OVERNMENT - IMPOSED TAXES

5. American has repeatedly overcharged tax amounts on AAdvantage mileage credit redemption tickets I pu rchased for travel for my child, in violation of 49 U.S.C. §
41712

.Com plaint

3 6. Italian Governmental embarkation tax (code IT) in Italy is half as much for children age 2

- 11 than adults, and has been this way under Article 5 of law number 324 of 5 May 1975 2 establishi ng such tax.
7. On 2 February 2015 American charged me the higher (double) adult tax on mileage redemption ticket 001 2347610782 for my 10

- year old child for travel originating in Italy (reservation FQTPAW ).
8. As required by American, I had provided the date of birth of my 10

- year old son at booking, prior to ticketing. For tickets purchased on American’s website, I selected “Child” under “Passenger type”.
9. American provided me with no tax breakdown in its “E

- Ticket Confirmation” emails, so I am only aware of the overcharge because my wife is on the same itinerary on a ticket with the same base fare (mileage credits + USD 0), and American charged her the same amounts in taxes. Since she is an adult, under applicable law her total tax should have been higher.
10. After simulating a purchase on American’s website similarly to the method used in Section C. below, I was able to ascertain that taxes applied to both tickets were applied at the adult level.
11. Similarly, the Japan Governmental passenger service facility charge (c ode SW), which is charged both on originations and connections through Japan, is also 50% lower for children ages 2

- 11.

2 See http://www.assaereo.it/documenti/LEGGE324

- 76.pdf (in Italian)Com plaint

4 12. In a failure parallel to the Italy issue above, American overcharged me by charging the higher adult tax rate on child ticket 0012341787 042 issued on 16 September 2014 for travel connecting in Tokyo Haneda, Japan (reservation APTSLA).
13. Further research shows that I have been overcharged on almost all my child travel mileage credits redemption purchases, including, in addition to the two tic kets above, the following ones:

a. Ticket 0012347353344 issued on 28 January 2015 for travel originating in Italy on 20 June 2015 (reservation UCGKXX ). Accompanying adult ticket 0012347353343 . Both adult and child were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax should have been less.
b. Ticket 0012388939537 issued on 15 April 2014 (an even exchange
of ticket 0012334190403 issued on 21 March 2014) for travel originating in Italy on 29 July 2014 (original reservation ZWKV HU ). Accompanying adult ticket 0012334190401 . Both adult and child were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax should have been less.

c. Ticket 0012386880753 issued on 10 February 2014 (an even exchange of ticke t 0012328358217 issued on 18 October 2013) for travel transiting through Tokyo Haneda, Japan, on 11 April 2014 (original reservation OUHBMB ). Accompanying adult ticket
0012328358218 . Both adult and child were charged the sameCom plaint

5

amount of tax, whereas under J apanese law (¶ 11 above), the child’s
tax should have been less.
d. Ticket 0012382241695 issued on 3 September 2013 (an even exchange tracing back to ticket 0012317174836 issued on 27 December 2012) for travel originating in Italy on 8 August 2013 (original

r eservation AUQLHW ). Accompanying adult ticket
0012317174833 . Both adult and child were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax
should have been less.

e. Ticket 0012301590359 issued on 3 January 2012 for travel or iginating in Italy on 13 August 2012 (original reservation LHAUHC ). Accompanying adult ticket 0012347877999 . Both adult and child were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax should have been less.
f. Ticket 0012 339955290 issued on 26 May 2011 for travel originating in Italy on 21 December 2011 (original reservation PBCOUM ). Accompanying adult ticket 0012339769341 . Both adult and child were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax should have been less.

g. Ticket 0012329166506 issued on 23 November 2010 for travel originating in Italy on 18 February 2011 (original reservation MIEPGZ ). Accompanying adult ticket 0012329166505 . Both adult and childCom plaint

6

were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax should have been less.
h. Ticket 0012361528979 issued on 23 September 2010 (an even exchange of ticket 0012325864046 issued on 21 September 2010) for travel originating in Italy on 7 August 2011 (original reservation JGQPCZ ). Accompanying adult ticket 0012325864045 . Both adultand child were charged the same amount of tax, whereas under Italian law (¶ 9 above), the child’s tax should have been less.
i. Multiple additional tickets issued before 23 September 2010.
14. I do not know the extent by which I have been overcharged. American has
withheld from me the exact amounts that it has collected from me for its remittances of
IT and SW taxes.

C. O NGOING OVERCHARGING OF G OVERNMENT - IMPOSED TAXES

15. A spot chec k of American’s website 3 reveals that the overcharging is ongoing and systematic.
16. For example, the United Kingdom has exempted all children under 12 from the Air Passenger Duty (code GB) 4 . But a search for mileage credits redemption economy
class tickets f

or two passengers flying one way from London, United Kingdom, to Los Angeles on 15 September 2015 on flight AA 106, quotes the same total taxes and fees of

3 https://www.aa.com/reservation/awardFlightSearchAccess.do accessed on 16 April 2015 4 https://www.gov.uk/government/publications/air

- passenger - duty

- childrens

- exemptionCom plaint

7 USD 366.00 both when selecting a party composed of “1 Adult (16

- 64) + 1 Child (2

- 11)”
and when selec ting one composed of “2 Adults (16

- 64)” (see Appendix 2). Given American’s significant operation to/from London, and its sale of tickets for travel on Joint Business Agreement partner British Airways (which are similarly affected), the likelihood of
child passengers among family redemptions, and the size of the taxes at issue, the total amount at issue for these UK tax overcharges is likely to be particularly large.
17. In my experience, the amount quoted is what ultimately gets charged (without any reductions ), and bookings by phone are charged at the same rates as on the website. Thus, it seems American is still overcharging customers for each child mileage credit redemption ticket in amounts as high as USD 144.00 per child 5

.

D. D EMANDS

18. I demand that American’s “E

- Ticket Confirmation” emails reproduce the entire information contained in its electronic ticket record (enhanced display) stored in its systems, as updated and changed from time to time. An example of the current format of an electronic ticket record (e nhanced display) is provided in Appendix 3.
19. This demand is not overly burdensome or unusual.

a. Sabre, the outsourced technology service company American uses
to issue its e

- tickets, already provides complete e

- ticket receipts for

5 The maximum APD tax rate is GBP 97.00, equivalent to USD 144.00 ( https://www.gov.uk/government/publications/rates

- and

- allowances

- excise

- duty

- air

- passenger - duty/rates

- and

- allowances

- excise

- duty

air

- passenger - duty )Com plaint

8

American Airlines tickets purchased at Sabre

- powered travel agencies (see Appendix 4).
b. All other airlines I do business with already provide complete e

ticket receipts (see examples in Appendices 5 and 6). American alone fails to implement this standard industry practice.

c. This dema nd consists of nothing more than holding American to provide customers what it long provided before its implementation of electronic ticketing (see Appendix 7).
20. I demand that American refunds the amounts of child taxes it has overcharged me. I ask that Ame rican provide me with the facts and categorizations supporting
its refund calculation since it withheld from me breakdown of the amount of tax collected on my tickets.
21. I demand that American refund all similarly overcharged customers.
22. I demand that America n immediately desist from routinely overcharging
Government

- imposed taxes on child tickets it is selling

.

Respectfully submitted,
/s/
Mike BorsettiCom plaint

9 CERTIFICATION

T he contents of this Complaint and the attached exhibits are true and correct to the
best of my knowledge and belief

. Pursuant to Title 18 United States Code Section 1001, I Mike Borsetti, have not in any manner knowingly and willfully falsified, concealed or failed to disclose any material fact or made any false, fictitious, or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution of this motion . I understand that an individual who is found to have violated the provisions of 18 U.S.C. section 1001 shall be fined or imprisoned not

more t han five years, or both

.

Respectfully submitted,
/s/
Mike Borsetti 17 April 2015Com plaint

10

CERTIFICATE OF SERVI CE

A copy of the foregoing has been served as required by 14 C.F.R. § 302.7 this day of 17 April 2015 upon the following parties via electronic mail, and no indication was received that any transmission had failed:

 For the U.S. Department of Transportation:
o Blane Workie, Acting Assistant General Counsel for Aviation Enforcement and Proceedings: blane.workie@dot.gov
o Kimberly Graber, Branch Chief, Consumer Protection and Competition Law, Aviation Enforcement and Proceedings: kimberly.gra ber@dot.gov

 For American Airlines Inc. : o Will Riis, Senior Vice President, Government Affair s, will.riis@aa.com
o Robert A. Wirick, Managing Director, Regulatory and International Affairs, robert.wirick@aa.com

/s/
Mike BorsettiAppendix p age 1

Appendix 1

- American’s “E
- Ticket Confirmation” emailAppendix p age 2Appendix p age 3Appendix p age 4

Appendix 2 P urchase with mileage credits: passenger selection screenAppendix p age 5

Pricing (identical whether “1 Adult + 1 Child” or “2 Adults” is selected):Appendix p age 6

“Tax and Award charge information” pop - up box (identical whether “1 Adult + 1 Child” or “2 Adults” is selected):Appendix p age 7

Appendix 3 Contents of AA electronic ticket record as stored i n a reservation system (“enhanced display”)

WETR*2/E« ELECTRONIC TICKET RECORD CRS CODE:0011 INV: 0000000 CUST: 000000 PNR: XXXXXX TKT: 001 1234567890 ISSUED:19JAN15 PCC: XXXX IATA: 000000 00 NAME: XXXXXXXXX/XXXXXXXX FF: AA 0000000 NAME REF: TOUR ID: XXXXXXX FORM OF PAYMENT FCI: 6 1 VIXXXXXXXXXXXX 0000 *XXXX / 00000A S CPN A/L FLT CLS DATE BRDOFF TIME ST F/B STAT 1 AA 108 N 01 SEP LAX LHR 1 8 00 OK NKX3NAJB OPEN NVB: 01 SEP NVA: 01SEP BAG:1 PC 2 AA 109 N 15 SEP LHR LAX 1 215 OK NKX3NAJB OPEN NVB: 15 SEP NVA: 15 SEP BAG: 1 PC

ENDORSEMENT NONREFUNDABLE/ RESTRICTIONS A PPLY

FARE USD793.00 TOTAL USD 1485 .00

FARE CALCULATION LAX AA LON396.50AA LAX396.50NUC793.00END ROE1.00 XFLAX4.5

TAX BREAKDOWN

TAX 4 5 8.00YR TAX 35 .40 US TAX 5.5 0 YC TAX 7 .00 XY TAX 5
. 0 0 XA TAX 5. 6 0 AY TAX 10 7. 7 0 GB TAX 63
. 8 0 UB TAX 4
. 5 0 XF

Note the Fare Calculation Line, Endorsement/Restrictions Line, and detail of all Taxes, Fees, and Carrier

- Imposed ChargesAppendix p age 8

Appendix 4 : E - ticket received from a travel agency email (Sabre)Appendix p age 9

Note the Fare Calculation Line, Endorsem ent/Restrictions Line, and detail of all Taxes, Fees, and Carrier

- Imposed ChargesAppendix p age 10

Appendix 5 Extract from a Southwest Airlines ticketing email

AIR Confirmation: XXXXXX Confirmation Date: 10/19/2014

Passenger(s) Rapid Rewards # Ticket # Expiration Est. Points Earned

XXXXXXX/XXXXXXX X 0000000000 526 1234567890 Oct 19, 2015 1963

Carryon Items: 1 Bag + small personal item are free. See full details . Checked Items: First and second bags fly free. Weight and size limits apply

. Fare Rule(s): 5262454782503: NONTRANSFERABLE. Valid only on Southwest Airlines. All travel involving funds from this Conf irmation Number must be completed by the expiration date. Unused travel funds may only be applied toward the purchase of future travel for the individual named on the ticket. Any changes to this itinerary may result in a fare increase.
BOS WN BWI196.28YL 196.28 END ZPBOS XFBOS4.5 AY5.60$BOS5.60
Cost and Payment Summary

AIR

- XXXXXX

Base Fare $ 196.28 Excise Taxes $ 14.72 Segment Fee $ 4.00 Passenger Facility Charge $ 4.50 September 11th Security Fee $ 5.60 Total Air Cost $ 225.10 Payment Information Payment Type: Visa XXXXXXXXXXXX 0000 Date: Oct 19, 2014 Payment Amount: $225.10

Note the Fare Calculation Line, Endorsement/Restrictions Line, and detail of all Taxes, Fees, and Carrier

- Imposed ChargesAppendix p age 11

Appendix 6 Extract from a Delta Airlines award ticketing email

Details - Taxes/Carrier - imposed Fees Total: 118.10 Itemized: 5.60 AY 5.00 XA 7.00 XY 5.50 YC 38.40 FR 30.10 QX

20.60 JD .80 OG 5.10 QV

Fare Details WAS DL X/PAR DL BCN M0.00TTAMKTG/QF163 DL X/PAR DL WAS M0.00TTAMKTG/QF163 NUC0.00END ROE1.00

Ticketing Details Passenger: Ticket #: Place of Issue: Issue Date: Expiration Date: XXXXXXXXXXXXXXX 006 00000000000 MSPRES 01AUG14 01AUG15

Note the Fare Calculation Line and detail of all Taxes, Fees, and Carrier

- Imposed ChargesAppendix p age 12

Appendix 7Example of a paper ticket of the kind routinely provided by American Airlines until discontinued (IATA standard)

Source: Wikimedia foundation, public domain

Note the similarities between the contents of this ticket, formerly routinely provided to customer and the contents of the AA electronic ticket record (“enhanced display”) as stored in a reservation system in Appendix 2. They both include, amongst other things, the Fare Calculation Line, the Endorsement/Restrictions Line (empty in this example) , and detail of all Taxes, Fees, and Carrier

- I m posed Charges