Compensation Clinic: British Airways Business To Premium Economy Downgrade On AA Award Ticket

This week’s Compensation Clinic is a continuance of a Reader Question case we featured back in December (read more here), where British Airways downgraded the passenger on an American Airlines-issued award ticket.

Remember that you can always email us, send a message via Facebook, or use Twitter and include photos too. We’ll try to cover a Compensation Clinic case here regularly.

You can access BA here.

You can read the original case where British Airways deemed that the reader was due merely $200 in compensation when in fact, they were required to compensate by law the reader roughly $1,500 per the calculation I presented on that piece.

Reader Question: British Airways Downgrade Compensation On AA Award Ticket?

The reader contacted us last week and informed us about a positive outcome in this case:

11 Dec. 2022: I was booked to fly LHR-IAD on BA0217 business, booked using 57.5K AA miles + US$671.65; at the check-in counter I was downgraded to PE (they said the business cabin was oversold).

After landing in IAD, I emailed BA to complain.

19 Dec.: I received an email from BA (“We’re sorry to hear it was necessary to downgrade you”) offering GBP300 flight credit or GBP200 cash. They also asked me to take up the matter with AA since the booking had been done through them.

I replied that this was not commensurate with the distress caused (I suffer from back pain, and it was difficult to sit upright throughout). I also pointed out that BA owed me $190.70 anyway, because the tax on a business ticket was $190.70 more than the tax on a PE ticket, so the offer of a £300 voucher / £200 cash was meaningless. I asked them not to ask me to take this up with American Airlines: “They did nothing wrong. I did nothing wrong. The only party that did something wrong is British Airways, and it’s up to you to own the problem.”

I also contacted AA through their website asking them to refund the miles.

21 Dec.: BA responded, “While we understand your reasons for asking for an increased gesture, the compensation amounts offered in the instance of a downgrade are non-negotiable.”

I emailed BA the following (and cc-ed the BA CEO): “Since my flight was on a UK carrier and departing from the UK, as I’m sure you know my case is covered under Regulation UK261.
The fault lies 100% with BA, not any other carrier.

Under the law, since the LHR-IAD flight was well over 3,500km (it was 5,917km) I am entitled to a refund of 75% of the cost of the flight.

The price of 57,500 miles, if purchased from AA today, is $1,622, and 75% of this is $1,217.

In addition, I am owed a partial tax refund of $190.70 due to the lower cabin.

The total “refund” (not “compensation”) due to me from BA is $1,407.70.

It was unethical of the check-in agents, gate agents, and you not to have informed me of my rights under UK261. BA had (and missed) several opportunities to do this.

Fortunately CEDR and MCOL exist.”

22 Dec.: AA emailed me saying they had refunded 35K miles to my account (the difference between the 57.5K miles I paid and the 22.5K required for non-peak economy). (Sorry, earlier I wrote they had refunded 57.5K miles; just rechecked my correspondence and realized it was 35K.)

BA responded: “I’ve thoroughly reviewed all the information you’ve sent us, and can confirm that we believe we’ve dealt with your case fairly and appropriately.”

23 Dec.: I filed an “application for adjudication” with CEDR.

14 Feb. 2023: CEDR emailed saying that BA had been contacted and now had 15 days to (a) settle the dispute with me, (b) object “on grounds of eligibility,” or (c) submit a written defense.

Beginning of May: CEDR emailed asking me to send my bank details to BA since BA had not responded within 15 days.

24 May: I received an email from BA saying they had deposited GBP1,200 in my account.

Conclusion

I am glad the reader followed my suggestion and took this case to CEDR, where they sided with the passenger after BA failed to respond.

The initial downgrade offer was laughable, but they know that very few follow up and file with CEDR or MCOL to get BA to pay what they are owed by the law.

Based on anecdotal evidence, it is clear that BA is eager to downgrade passengers on award tickets and those where they have used upgrade and/or 2-4-1 vouchers.

You really do need to know your rights and “fight” for the compensation you are due.

If only more passengers did this, the cost to BA and other airlines would be too high to keep overselling cabins, knowing that they can always bump passengers at a minimal cost to them.

Has any airline ever informed you about your rights regarding delays, cancellations, downgrades, and bumps? Yeah. I know the answer – never.