British Airways to Pay Expenses in Fare Foul-Up

The U.S. Department of Transportation said that British Airways has agreed to compensate consumers for cancellation penalties and other expenses incurred due to the carrier's erroneous offer of $40 fare between the United States and India. The carrier realized its error nearly immediately and removed the fare within minutes from its own website, but it remained on the websites of certain on-line travel agents for about two hours. During this time, more than 1,200 bookings were made covering approximately 2,200 passengers.

British Airways cancelled the bookings of all passengers who purchased the fare and, before the Enforcement Office began its review of the matter, offered all affected passengers a travel voucher valued at $300. Now British Airways also has agreed to reimburse passengers resulting from having relied on the erroneous $40 fare. These could include fees for cancelling flights or cancelling hotels, rental cars or other ground arrangements, as well as additional costs incurred in rebooking flights due to fare increases on previously held flights that were cancelled in order to book the $40 fare.