TOUGH American must honour bookings

Posted on 11/10/2015

On the 17 March this year some people browsing on the American Airlines website probably thought they had the luck of the Irish. Tickets from select US cities to Shanghai or Beijing were posted for $20. The computer glitch lasted five hours of which almost 1,200 tickets were purchased and now the airline has been told it must honour those bookings.

Tickets from US cities to Shanghai or Beijing would normally sell for up to US $5,000.

When flights were posted for $20 (or free in some cases) the news spread on social media.  By the time the glitch was corrected 1,600 reservations were made.  Some were purchased immediately and many were placed on 24-hour hold.

When the airline realized the error, they cancelled the bookings on hold.

American Airlines felt that social media prompted purchasing made in "bad faith, and not on the honest belief that a good deal was available."

The US Department of Transportation ruled that the tickets were to be honoured, including the ones put on a 24 hour hold.

American Airlines will now offer a free economy class ticket to China or a $1,500 discount on a business class ticket to the people whose reservations were cancelled. Those who opt for the free ticket will have to pay taxes and fees which will be about $450.

The error is expected to cost the airline $1 million. They will not be allowing passengers to earn loyalty points for these bookings from May 2015 onward.