During the past week we have seen what can happen when an iconic brand is severely damaged by a single event - intentional or not.
One of the integral parts of the Air Transportation system is that the contractual relationship between the airline and its customers is firm and hard.
The customer is required to perform and the agent in the middle (should there be one) is required to ensure enforcement of many complex and in quite a few cases seemingly arcane rules.
This is the basis of the passenger airline system. So it comes as a big surprise to find out that the product you buy as a consumer from the airline is not in fact guaranteed.
The case I am specifically pointing to is British Airways and the infamous $40 fare from the US to India. The details are not in dispute - but 2200 people bought the fare. Can you say Viral!!!!
BA canceled the bookings and offered a $300 compensation credit. Then the DOT stepped in. At which point BA upped the ante and provided additionally compensation for the impact of the canceled reservations with hotels cars etc.
if you would like to read BA's statement on the matter (its quite buried below the fold) click here. But do it quickly I doubt it will be there long.
When the DoT stepped in the Secretary was happy to report:"We are pleased to see that British Airways has accepted responsibility for the fares it published," Ray LaHood said.
I think that both BA and the DOT were fundamentally wrong here. BA for the initial mistake and not honouring its fares and the DOT for creating a precedent and effectively a get out of jail free card for any airline who doesn't like the fares they have contracted for. Chaps this is not good at a time when Congress is agitating for a Passenger Bill of Rights - you have collectively undermined the whole basis of the contract between any airline and the general public with the DOT's blessing.
So Go On Be A .... Tiger
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