I had booked my air plane ticket with American Airlines (AA)
a few months ago to fly back to Colorado in October, but in the interim
accepted a job and needed to fly earlier. I called AA today to see if I could
cancel, rebook, acquire credit, etc.
AA informed me they wouldn't refund, nor rebook my ticket
without me paying the minimum $200 service fee. They further said either the
named passenger could fly or the seat would be empty. The AA agent said, any
change - refund, name change, rebooking - would carry a $200 service fee. The
AA agent, upon seeing that my ticket was $141 said that I was ahead to cancel,
take the loss and purchase a brand new ticket when I was ready to fly. I opted
to rescind the reservation. I presume the $141 I had paid in-advance would be
regarded as pure economic loss.
I understand the contract analysis that the bargain for
exchange was $141 in exchange for non-refundable reservation/ticket. If I had
contracted for a refundable ticket, that would have been $1,056.
Playing out the fact pattern a bit more, let's say that AA
sells the seat I cancelled to another. That means AA not only gets my $141, but
also gets to profit from making another sale. Even if AA doesn't resell my
cancelled seat, they still have a greater bargain than they contracted for, as
without me riding the plane, they would have better fuel efficiency because the
plane would be lighter, from less body and cargo weight.
Perhaps it is that I am poor and $141 is a lot of money to
me, but it seems unfair. I thought about unjustified enrichment as a possible
legal basis for action, but such an action is only to prevent a breaching party
from receiving the benefit. Since I am breaching party, I wouldn't have a right
to claim AA is unjustly enriched.
On the regulatory side, the Department of Transportation has
determined that notice of terms concerning refunds and monetary penalties is
sufficiently important to be given directly to passengers. The regulations say,
"A passenger shall not be bound by any terms restricting refunds of the
ticket price, imposing monetary penalties on passengers, or permitting the
carrier to raise the price, unless the passenger receives conspicuous written
notice of the salient features of those terms on or with the ticket." 14 C.F.R.
§ 253.7.
Not that a non-refundable ticket bounds AA to not granting
refunds, it is just that to award a refund of the ticket price carries a $200
service fee. Perhaps the software licence or call center's staff are expensive,
but $200 seems a bit hefty for a service fee. Makes me wonder at what point
does a fee become a monetary penalty? Conversely, it seems keeping the ticket
price is a constructive monetary penalty. Also, the service fee is a
constructive form of restricting refunds, as who would pay $200 to get a $141
ticket refund?
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