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-2015-____

COMPLAINT
Complaint

1

BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Mike Borsetti

vs.

American Airlines, Inc.

Docket DOT-OST-2015-____

COMPLAINT

A. INCOMPLETE 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 399.831, 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 the ticket purchaser with a complete copy of the electronic ticket record as 

stored in the carrier’s system.
Complaint

2

a. the fare basis and ticket designator of each segment, without which 

applicable fare 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 

amount and type of surcharges levied (“S” and “Q”), whether a 

higher 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-imposed 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. OVERCHARGING OF GOVERNMENT-IMPOSED TAXES

5. American has repeatedly overcharged tax amounts on AAdvantage mileage 

credit redemption tickets I purchased for travel for my child, in violation of 49 U.S.C. § 

41712.
Complaint

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 19752establishing such tax.

7. On 2 February 2015 American charged me the higher (double) adult tax on 

mileage redemption ticket 0012347610782 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 (code 

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)
Complaint

4

12. In a failure parallel to the Italy issue above, American overcharged me by 

charging the higher adult tax rate on child ticket 0012341787042 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 tickets 

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 ZWKVHU). 

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 ticket 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 same 
Complaint

5

amount of tax, whereas under Japanese 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 

reservation 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 originating 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 0012339955290 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 child 
Complaint

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 adult 

and 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. ONGOING OVERCHARGING OF GOVERNMENT-IMPOSED TAXES

15. A spot check of American’s website3reveals 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 for 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-exemption
Complaint

7

USD 366.00 both when selecting a party composed of “1 Adult (16-64) + 1 Child (2-11)” 

and when selecting 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 child5.

D. DEMANDS

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 (enhanced 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-dutyair-passenger-duty) 
Complaint

8

American Airlines tickets purchased at Sabre-powered travel agencies (see Appendix 4).

b. All other airlines I do business with already provide complete eticket receipts (see examples in Appendices 5 and 6). American 

alone fails to implement this standard industry practice.

c. This demand 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 American 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 American immediately desist from routinely overcharging 

Government-imposed taxes on child tickets it is selling.

Respectfully submitted,

/s/

Mike Borsetti
Complaint

9

CERTIFICATION

The 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 than five years, or both.

Respectfully submitted,

/s/

Mike Borsetti

17 April 2015
Complaint

10

CERTIFICATE OF SERVICE

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.graber@dot.gov

 For American Airlines Inc.:

o Will Riis, Senior Vice President, Government Affairs, will.riis@aa.com

o Robert A. Wirick, Managing Director, Regulatory and International Affairs, robert.wirick@aa.com

/s/

Mike Borsetti
Appendix page 1

Appendix 1 - American’s “E-Ticket Confirmation” email
Appendix page 2
Appendix page 3
Appendix page 4

Appendix 2

Purchase with mileage credits: passenger selection screen
Appendix page 5

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

“Tax and Award charge information” pop-up box (identical whether “1 Adult + 1 

Child” or “2 Adults” is selected):
Appendix page 7

Appendix 3

Contents of AA electronic ticket record as stored in a reservation system (“enhanced display”)

WETR*2/E« 

ELECTRONIC TICKET RECORD CRS CODE:0011 

INV:0000000 CUST:000000 PNR:XXXXXX

TKT:0011234567890 ISSUED:19JAN15 PCC:XXXX IATA:00000000

NAME:XXXXXXXXX/XXXXXXXX FF:AA0000000 

NAME REF: TOUR ID:XXXXXXX 

FORM OF PAYMENT FCI: 6 

1 VIXXXXXXXXXXXX0000*XXXX /00000A S 

CPN A/L FLT CLS DATE BRDOFF TIME ST F/B STAT 

1 AA 108 N 01SEP LAXLHR 1800 OK NKX3NAJB OPEN 

 NVB:01SEP NVA:01SEP BAG:1PC 

2 AA 109 N 15SEP LHRLAX 1215 OK NKX3NAJB OPEN 

 NVB:15SEP NVA:15SEP BAG:1PC 

 

ENDORSEMENT 

NONREFUNDABLE/RESTRICTIONS APPLY 

 

FARE USD793.00 

TOTAL USD1485.00 

 

FARE CALCULATION 

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

 

TAX BREAKDOWN 

TAX 458.00YR TAX 35.40US TAX 5.50YC TAX 7.00XY

TAX 5.00XA TAX 5.60AY TAX 107.70GB TAX 63.80UB

TAX 4.50XF

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

Fees, and Carrier-Imposed Charges
Appendix page 8

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

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

Fees, and Carrier-Imposed Charges
Appendix page 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 5261234567890 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 Confirmation 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 XXXXXXXXXXXX0000

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 Charges
Appendix page 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 00600000000000 MSPRES 01AUG14 01AUG15

Note the Fare Calculation Line and detail of all Taxes, Fees, and Carrier-Imposed Charges
Appendix page 12

Appendix 7

Example 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-Imposed 

Charges