British Airways Downgrades Passengers Who Paid With Avios Points, Compensation Scrutinized

A British Airways passenger experienced a significant downgrade on a flight from Costa Rica to London in January, after the airline changed the aircraft, altering the seat configuration. The passenger and her husband had booked premium economy tickets a year in advance using Avios points and a companion voucher. Upon attempting to check in online, they discovered an issue, and upon arrival at the airport, were informed of the downgrade due to the flight being overbooked in their chosen cabin.

British Airways offered to refund the points and provide a small monetary sum. However, the passengers believed the downgrade was discriminatory, suggesting they were penalized for paying with loyalty points rather than cash. They were moved to economy seats. Their formal complaint to British Airways resulted in the return of their points and a refund of air passenger taxes, which they found insufficient.

The case was escalated to the Centre for Effective Dispute Resolution (CEDR), an independent service for airline complaints. The process was reportedly slow, with British Airways being reluctant to engage. Following a push from the Money Mail newspaper, British Airways stated the compensation claim was still with CEDR.

Rob Burgess, editor of the travel rewards website Head for Points, commented on the situation. He noted that such predicaments were a significant topic of discussion a few years prior, with loyalty program members often receiving the short end of the stick in downgrade situations. However, he suggested that unless passengers volunteer for downgrades, the selection process is typically computer-driven.

Under European legislation EC261, passengers facing a downgrade on flights of a certain distance are entitled to 75% of the ticket price. British Airways calculated the compensation at £145 plus 27,750 Avios points, asserting that the companion voucher had no monetary value. The passengers disputed these figures.

CEDR, unable to order compensation in points and lacking further evidence from British Airways regarding the monetary value of Avios, conducted its own calculations. It estimated 60,000 Avios points to be worth £1,075 and determined the passengers were entitled to compensation for 55,000 of those points. CEDR also disagreed with British Airways' assessment of the companion voucher's value and instructed the airline to pay the passengers £994.38, in addition to the £213 they had already received. This resolution was confirmed eight months after the downgraded flight.