Need your advice: Is this enough compensation for a canceled flight to Rio?

Rio will have to wait for HaiYing Soong and her family. Their planned eight-day trip to Brazil didn’t happen last month after their connecting flight on US Airways from Charlotte was canceled. But has the airline done enough to compensate her for the trouble?

I’ve been going back and forth with Soong for several days, and I’m not entirely sure. According to US Airways’ contract of carriage — an agreement written by the airline’s lawyers and enforced by the Transportation Department — it owes her a refund for the unused tickets. But after you hear her story, you may think US Airways can do better.

But better how? And, more importantly, what should Soong do now?

Let’s get to the story. Soong, her husband and six-year-old son flew from San Francisco to Charlotte to pick up the connection to Rio on June 23.

While waiting to board, we learned through several announcements that our flight was delayed for “a short while” because the aircraft had to be cooled down; we were assured that boarding will take place soon. After about three hours however, at 1:30 a.m., we were told that our plane actually had an air-conditioning problem that they were trying to fix and that they would give us the final status of the flight for sure in 5 minutes.

At about 2 a.m. U.S. Air announced that our flight has been cancelled because they could not solve the air conditioning problem. What’s more alarming at this point is: U.S. Air gate staff there did not seem to know the solution. Later, they told us that they would have a new aircraft in the morning to fly us out – U.S. Air 9010.

But that didn’t happen. After waiting at the airport all night, and standing in a long line the next morning, the family got some more bad news: Flight 9010 was also canceled.

Effective chaos then ensued as 200-plus passengers from the Rio flight attempted to get rebooked. We were eventually escorted back through security to the U.S. Air international counters in the terminal where three counter agents attempted to rebook/reroute some 200+ upset passengers, with three policemen standing in the background!

After nearly three hours of waiting, when my husband finally reached the counter agent, the agent told him that there was no current availability on flights to Rio for my family until Aug. 10 (more than two weeks from that day – July 24!). We could not believe that they could not find any seats available for the next 16 days to get us to Rio from Charlotte.

Under US Airways’ contract, the family is owed a full refund on the unused portion of its flight, which it offered. But that doesn’t begin to address Soong’s problems.

My husband, who is a professor at [The University of California], missed giving his technical lecture at an international engineering conference in Rio. We had significant out-of-pocket expenses – in addition to three international airfares, we were charged with the no-show hotel bill for the first night in Rio, and for booked shuttle fees in Rio to get us to the hotel, as well as other related expenses such as Brazilian visa fees, parking at SFO, etc., all together totaling roughly $4,500.

An appeal to US Airways sweetened the offer. In a phone call to her husband, an airline representative offered to reimburse the family for both the used and unused portion of the flights, plus issue vouchers for $300 for each passenger.

Is that enough compensation for a night spent at the airport, a missed vacation and out-of-pocket expenses totaling $4,500?

Do the math; it isn’t.

But Soong isn’t entitled to more, according to US Airways’ contract. It didn’t have to refund the used ticket and offer the vouchers. So here’s her dilemma: Should she wait for the refund and the vouchers — vouchers, by the way, she says she won’t be able to use — and then ask for more, or should she reject the offer on the table, possibly endangering the entire refund?

What would you do? Is this enough compensation? Should US Airways compensate her and her family in a more meaningful way? If so, should she ask for it now, or wait until the check arrives in the mail?

Update (10 a.m.): I’ve been copied on an email to US Airways by Soong.

Thank you for your phone call on the morning of Aug.3, 2010 informing us that:

1. US Airways will process the refund for us separately on the USED tickets (SFO-Charlotte on July 23) and UNUSED portions (Charlotte-Rio and returns to SFO on Aug 1-2) of our flights.

As detailed in our letter of July 28, 2010, the total amount of our three air tickets (SFO-GIG) is close to US$3,900.;

For this refund offer, would you kindly provide us with a written confirmation/letter from your office in addition to your phone call on Aug.3?

2. US Airways has issued 3 vouchers in the amount of $300 each voucher respectively for my wife, myself and my son (i.e. total $900), in lieu of reimbursing us for other related expenses which totals about $500. You advised that US Airways can only refund us these cost in the form of vouchers.

We appreciate your effort in trying to reimburse us as such, however, please understand that these vouchers have little use to us at this point and what’s more they cannot help us offset/pay the incurred expense as a result of this aborted trip. From our vantage point, this Rio trip that we planned for many months was a lifetime opportunity that was unfortunately ruined not because of the mechanical problem of the aircrafts but due to the way the situation was handled after our two flights were canceled.

For this reason and the hassles as well as our time wasted during and after this aborted trip, not to mention all the disruptions to our other schedules, we feel that US Airways could really use this opportunity to make it right this time by offering us a reasonable compensation. At the very least, we feel that US Airways should also refund us on our approx. $500 expenses resulting from this canceled travel.

If our satisfaction is truly important to US Airways as stated in your email yesterday, we’d like to kindly ask you to please reconsider your decision and at least refund us the incurred expenses as well, if no reasonable compensation could be offered for putting us through two horrific days and all the inconveniences thereafter.

Once again we appreciate your decision and thank you sincerely for at least refunding the cost of the airline tickets.

So there you have it. They’re going to ask for cash compensation. I’ll update this when it’s resolved.

Meantime, in answer to some of the comments and questions. Soong booked this flight on Orbitz and she didn’t have travel insurance. I’m not sure if a trip interruption policy would have covered all of the family’s expenses, but it might have taken care of some of them.

(Photo: sven werk/Flickr Creative Commons)

  • John

    “Travel insurance is a scam that people in the travel industry came up with to make more money off of. i never buy it. i travel frequently and have never had a problem.”

    That’s hilarious. This one of the stupidest things I’ve heard in a long time. Of course most of the time nothing is going to happen to you. That’s why it’s called INSURANCE. By your logic, auto insurance is scam if you’ve never been in an accident and health insurance is a scam if you’ve never been sick.

  • Joe Farrell

    The question becomes WHEN would a reasonable aircraft owner and operator have known the AC packs were not repairable – and what efforts did they make to repair them.

    Same question on the next flight to make the connection.

    My God people, are these folks just totally ignorant?

    American flies to Rio out of Miami. And New York.

    Delta out of Atlanta.

    Continental out of Newark.

    United out of Dulles.

    TACA through Central American

    Lan Chile through Chile

    The list goes on and on and on – there are dozens of airlines and connections to be made. And these folks just gave up? And US is NOT on of the airlines that goes to Rio = they connect with the United flight. This is a service interruption to travelers enroute to their destination. US has code share agreements – and they COULD have also upgraded these people if coach was not available – its not like it was going to cost USAir the same fare upgrading them that it would cost these people retail . . .

  • Arizona Road Warrior

    @ Carver – “And that assumes that there were other flights available.”
    - – - – - – - – - – - – —
    Since there are five airlines besides US that have flights from CLT to GIG, there could have been a chance to find another flight; however, all of these five airlines have only one daily flight to GIG so there could have been a chance that these flights are full.

    @ Carver – “In my admitedly brief research, I was unable to verify that statement.”
    - – - – - – - – - —
    Source: http://www.squaremouth.com (at this website, you can compare the benefits, terms, etc. of 115 plans from 18 different insurance carriers)

    Travel Delay
    What am I covered for?

    The Company will reimburse You for covered expenses on a one-time basis, up to the maximum shown on Your Confirmation of Benefits, if You are delayed en route to or from the Trip for six (6) or more hours due to a defined Hazard:

    Covered expenses Include:
    a) Any prepaid, unused, non-refundable Land/Sea accommodations; or any reasonable additional expenses incurred for meals and accommodations limited to $200 per day;
    b) An Economy Fare from the point where You ended Your Trip to a destination where You can catch up to the Trip; or a one-way Economy Fare to return You to Your originally scheduled return destination.
    c) Reasonable additional transportation expenses.

    * * * * * * * * * * * * * * *

    Source: http://www.travelinsure.com/what/voyagercovdetails.asp#13 (this comapany sells annual travel insurance so the conditions are longer like a travel delay is 24 hours compared to travel delays of 4 to 8 hours on the policies that you can find at squaremouth).

    TRIP DELAY
    The Company will pay benefits for Trip Delay, subject to the maximum shown in the Schedule of this Confirmation, if the Insured’s Trip is delayed for 24 or more hours due to a Covered Hazard.

    If the Insured’s Trip is delayed due to a covered hazard, the Company will reimburse the Insured for:

    1.any prepaid, unused, non-refundable land or water accommodations;
    2.any Reasonable Additional Expenses incurred;
    3.a one-way economy ticket from the point where the Insured ended the Trip to a destination where the Insured can rejoin the Trip; or
    4.a one-way economy ticket to return the Insured to the originally scheduled final destination.

    Covered Hazards:
    1.delay of a Common Carrier caused by Inclement Weather;
    2.delay due to a Strike or other job action by employees of a Common Carrier scheduled to be used by the Insured during the Insured’s Trip; or
    3.delay caused by Equipment Failure of a Common Carrier.

  • David Z

    Don’t we all (okay, some) want someone to compensate us for being inconvenienced in some way and more? Are we all (okay, some) willing to compensate someone, for any and all perceived inconvenience, no matter how costly it can be for us?

    Just asking.

  • Joe

    What I find amazing is that US Airways couldn’t figure out a way, ANY way, to get these people to their destination? I mean even if they had to fly from Charlotte to say New York then to Rio for example.. Or Charlotte to Miami then Fort Lauderdale to Rio. End of the line, US airlines should of booked them on another airline. Suck it up US Airways.

  • Arizona Road Warrior

    @Jeff – “travel insurance is a scam that people in the travel industry came up with to make more money off of. i never buy it. i travel frequently and have never had a problem.
    - – - – - – - – - – - – — – - –
    Travel insurance policies sold through the airlines, cruise lines, tour operators, etc. are written to benefit the travel providers not the travelers; therefore, should be avoided. However, travel insurance policies sold by insurance companies do provide good benefits.

    The purpose of insurance is to provide coverage for risks that you are unwilling to accept. My philosophy is to plan for the worst and expect the best. It is best to have insurance and never use than not to have insurance but have to use it.

    If you can handle the financial loss than there is no need to purchase travel insurance.

    @ Chris in NC – “2) A lot of people are harping on the Soongs because they did not buy insurance. Would it have helped? maybe, but if insurance is such a trouble free thing, why are there so many insurance horror stories?”
    - – - – - – - – - –
    One reason is that some travelers buy it from a travel provider (i.e. airlines, cruise lines, tour operators, etc.) where the policies were written to benefit the travel provider not the traveler.

    @ Chris in NC – “Calling the helpline may have got them booked on a different flight, but thats it.”
    - – - – - – - – - –
    Since this was a once in a lifetime opportunity for the Soong, it would have saved their vacation by being put on a different flight on a different airline.

  • Arizona Road Warrior

    @ Joe Farrell – “The list goes on and on and on – there are dozens of airlines and connections to be made. And these folks just gave up? And US is NOT on of the airlines that goes to Rio = they connect with the United flight.”
    - – - – - – - – - –
    You are incorrect…they do not connect with United, do not use a code-share flight with UA or etc. US does fly to Rio De Janeiro, Brazil (GIG). It has a direct flight, US800, from Charlotte (CLT). The plane is a 767. The metal is US. US Airways began daily, nonstop service to Rio de Janeiro from its Charlotte, NC hub in December 2009.

    You can go to the US website to confirm this. Also, you can go to their promotion page on their website and see that this flight is listed in their Hop, skip and jump for Preferred status promotion, http://shopping.usairways.com/en-US/dividendmiles/promotions/hop_skip_jump.html?c=dm_txt_00981. You can go to the 2009 Press Release section on their website to see that they are flying to GIG on their own metal.

    Back In May, US began a bilateral codeshare relationship with TAM Airlines which has flights from MIA and JFK to GIG. They could have rebooked the Soongs on TAM as well as any of the Star Alliance partners (UA or CO) that has flights to GIG or transfer their tickets to AA or DL.

  • Mike Z

    @ Steve:
    “1. I’m glad US Airways is refunding the full airfare even though they are not required to do so, but I think the contract *should* require a full refund in this case. They only flew SFO-CLT to make a connection to Rio; as such, claiming that they “used” the SFO-CLT portion of the fare may be technically correct but is deceptive. So I’m glad US Air refunded the whole thing – I think that’s fair.”

    There was no “used” portion of the tickets. They contracted to go from San Fran to Rio. The fact that the airline had to stop at one, or possibly 7 cities in between makes no difference. The fact is that the airline did not follow through to deliver at the contracted destination. The used portion of the flight would be SanFran to Rio, if they had ever gotten there.

    Now if they had purchased tickets to go from San Fran to Charlotte then to Rio, with a 1 or 2 day layover in Charlotte because they were visiting friends, then yes, there would have been a used portion of the flight.

    With the refund offer, the family is out about $600 by their calculations. The airline offered $900 total, which I think is about the best one will ever do. The big problem with these vouchers is that they often say they are good for $x amount off a full published fare and that certain discounts cannot apply.

    I once had a voucher given to me on a flight that got delayed going to Las Vegas from Cleveland. A normal cheap promotional 30 day booking was about $200 plus taxes. If I wanted to use my $100 voucher, it could not be on any of those promotional rates, so using my $100 voucher would have forced me to buy a $350 ticket instead of a $200 ticket for my next flight. I tossed it in the trash 20 feet from the kiosk where I was handed the voucher. When someone asked me why I just did that I explained it to them and they got a sad look on their faces. LOL

  • Arizona Road Warrior

    @ Mike Z – “The big problem with these vouchers is that they often say they are good for $x amount off a full published fare and that certain discounts cannot apply.”
    - – - – - – - – - – -
    I can’t speak for other airlines but the vouchers that I have received from US Airways have been pretty good. In the past six months, I have received two vouchers from US Airways. I didn’t have to purchased a full fare to use them.

    “May be used toward the price of one ticket/one fare on US Airways, US Airways Shuttle, and US Airways Express, as well as their codeshare partners. If the price of the ticket is greater than the value of the voucher, you
    simply pay the difference. If the discount exceeds the price of the ticket, no residual value will be given. Travel is eligible for Dividend Miles credit.”

  • Mary Graham

    They should really take them to court, if able to

  • Cordovan

    To suggest that US Airways has totally mishandled this situation would be an understatement!! What, pray tell, are they thinking? Certainly they could have put the family on another company’s planes, even if that meant an additional connection. Clearly, US Air did not care!!! Simple solution that does not take additional money out of US Air’s pockets and adequetly compensates the family to they degree they can ever be compensated? Simple–refund ALL ticket amounts (taexes included) and deposit in each of the 3 persons’ accounts sufficient FF miles to fly business class to Rio. Let the family then choose how to use those miles. Simple, quick and most important creates close to a win/win.

  • Ernest

    Things like this are what keeps me thinking that the airlines, travel agents and insurance agencies are crooks.

    I had a similar situation where my flight was delayed in the US causing me to miss my overseas connection. My big mistake was I used a travel agent and only the agent could modify the flights. It should be no suprise that my agent was not able to do anything on a friday night but tell me to wait a few days.

    Lucky for me, I only lost $3000 out of about 14,000. It was the most expensive travel lesson I have ever learned.
    1. Never use a travel agent
    2. Never depend on the airlines to get me anywhere on time ( I now leave 6 hours earlier than I need to)
    3. It cost the same to be screwed by the airlines if you have insurance or not so its not worth the time, trouble or cost.

    Jaded ? Yes. But at least I can take care of my own problems on a weekend flight and the travel agent with worthless insurance is not to be found.

    To the airlines and many (not all) travel professionals, we are just a dollar sign.

  • Dan

    Here is where USAirways is at fault and they have a legal leg to stand on.

    When they rebooked passangers the first thing they should have done is find out which passangers had priority in rebooking…i.e. the ones traveling to Rio for a specific business meeting or conference as opposed to others who are traveling just for vacation. Those traveling for a specific documented reason should be granted priority.

    Tehy can get out of the hotel charges because this was a conference attendance. By informing the conference organizers they could and should be able to get out of any hotel charges. Not by them doing it but by going through conference management. The hotel will listen…why …word gets out about conferences and this would become a factor in them getting another conference in their hotel.

  • Ernest

    @Dan

    Those traveling for a specific documented reason should be granted priority.
    .e. the ones traveling to Rio for a specific business meeting or conference as opposed to others who are traveling just for vacation.

    Thats really lame. It doesn’t matter why I am traveling and to give someone who claims they are traveling for business priority over me as a professional tourist just opens the gates for lawsuits.

    Its not the airlines business why anyone is traveling as long as they have broken no laws. Business or pleasure is the same. My ticket is as important to me as yours is to you. I probably spend more money in the countries I visit than those attending conferences so perhaps I should get the priority arrangements.

    If your business is so important that it can not stand a reschedule, then you need to get your own jet or get priority booking with a first class ticket.

  • Joel Wechsler

    @Ernest I think you are being unnecessarily harsh in your assessment of travel agents and insurance. As @Arizona Road Warrior has correctly pointed out, insurance sold by insurance companies, as opposed to airlines, cruise lines and tour operators, can be very helpful. As to your travel agent, a good one should have either been able to do something other than tell you to wait or should have a 24 hour emergency number that would have been able to help you.