Times: BA faces huge fine for misleading travellers

From The Times
March 29, 2008
BA faces huge fine for misleading travellers

Ben Webster and Alexi Mostrous

British Airways is facing fines of up to £5,000 per passenger for breaking
European rules by misleading the hundreds of travellers stranded at Heathrow
about their compensation rights. Chaos at Terminal 5, which forced the
cancellation of 72 flights yesterday, will cause further disruption for
thousands more passengers throughout the weekend.

Last night BA confirmed that a further 54 incoming and outgoing flights will
be cancelled today, blighting the holidays of thousands of families. The
Times has learnt that managers at the airline were warned by unions a
fortnight ago that baggage staff had not been properly trained to handle its
new system.

The Air Transport Users Council (AUC) said that a letter issued by BA to
passengers on Thursday night breached the European regulation setting out
the minimum rights for travellers whose flights are delayed or cancelled.
The letter said: ³Regrettably, we are unable to provide you with a hotel
room during this disruption. If you make your own arrangements, we will be
happy to consider reimbursement of some of your out-of-pocket expenses.²

It then listed the maximum amounts that passengers could claim, including
£100 for two people sharing a hotel room. Staff at the terminal¹s hotels
reservation centre said that the minimum rate on Thursday night for a double
room was £250.

However, EU regulations require airlines to provide hotels for all
passengers delayed overnight and do not set any maximum cost. They also
state that passengers must be informed of their full rights under the
regulation, including compensation of up to £460 for cancelled flights and
two free phone calls. The letter did not mention the regulation,
compensation or phone calls. Simon Evans, the AUC¹s chief executive, said:
³On the face of it the letter is a clear breach of the regulation because it
does not explain clearly what people are legally entitled to. It appears to
be deliberately misleading and worded to put people off thinking they had an
entitlement. It would make some people cautious about even booking into a
hotel. It seems BA was trying to minimise costs.²

He said the AUC would refer the letter to the Civil Aviation Authority as
evidence of a breach of the regulation. The CAA has the power to take
enforcement action against airlines over unresolved passenger complaints.

Mr Evans said BA should not have set a maximum amount for hotel costs and
should have had a better contingency plan in place to help passengers.

In a statement last night the airline said: ³We do not believe it was a
breach of the regulation. We will consider claims on a case by case basis.²

BA, the sole occupant of Terminal 5, cancelled 72 flights yesterday, four
more than on the opening day on Thursday. It refused to say how many
passengers had been affected. Glitches in the automated baggage system and
lack of training among baggage handlers continued to delay flights.

Many passengers spent Thursday night at the terminal, either because their
flights had been cancelled or because BA had stopped accepting checked-in
luggage. Some complained about BA¹s stance on hotel reimbursement,
particularly as hotels were allegedly increasing their prices by as much as
100 per cent. Hasim Sakarya, a chemical engineer from Turkey, had his flight
to Istanbul cancelled yesterday. He said: ³We got the letter saying £100 was
the maximum but £260 was the cheapest room. We had to stay otherwise we¹d be
sleeping on the floor. I don¹t know how long BA will take to reimburse us,
what forms we need, nothing. I am never flying BA again.²

Malik Ibrahim, 26, who spent £300 on a room on Thursday night after his
flight to Newcastle was cancelled, said: ³I still don¹t know whether BA will
refund me the entire cost of the hotel. It¹s a bit of a joke.²

BA issued a revised letter to passengers delayed overnight last night,
saying that they could claim up to £200 for a hotel room.

BA shares fell more than 3 per cent yesterday. There were also concerns on
the impact of the ³open skies² policy which comes in tomorrow.

http://travel.timesonline.co.uk/tol/.../article364290
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