What would you do? No refund for a canceled Air Baltic flight

Editor’s note: I’m introducing a new feature — “What would you do?” — today. Here’s how it works: At 7 a.m. Eastern time, I present a case and ask you how you’d solve it. You can take a poll or sound off in the comments. At 5 p.m., I’ll reveal the poll results and tell you how it was resolved.

Sirje Viise and a friend were scheduled to fly from Tallinn, Estonia to Berlin by way of Riga on Air Baltic. They had booked their airline tickets through Expedia.

But something happened between Estonia’s capital and Germany. Viise believes an overbooking problem led to her delay at a stopover in Riga, and after some haggling with ticket agents, she and her companion were instructed to buy two new tickets on EasyJet for 256 euro each.

European law is clear about the compensation to which Viise is entitled in an overbooking situation: 2,000 euros for the two delayed flights and a refund for her unused connecting flight. But Air Baltic, whose slogan, interestingly, is “We Care,” had other ideas.

The airline says it rebooked the two on an SAS flight the next day, which they didn’t take. What’s more, it says EU doesn’t apply since they weren’t denied boarding because of an overbooking problem, but because of circumstances “beyond their control” — which is legalese for a force majeure event outside the airline’s control or responsibility.

Which is a little odd, says Viise. While it’s true that Air Baltic initially sent her to an SAS flight, it later told her to buy the EasyJet tickets, with assurances that she’d get a refund for her unused flight from Riga to Berlin. She even has a signed and stamped paper ticket from Air Baltic with a notation to that effect.

During her trip, in fact, Air Baltic wasn’t shooting straight about the circumstances of her delay.

As we stood there waiting for the customer service or manager they’d called over, gate agents spoke to one another and on the phone in Estonian about the problem being that we were all overbooked and a strange mistake had been made with the booking.

When I asked about this new information in Estonian and English, they refused to speak to us, and switched to Russian when they spoke to each other at all (I don’t speak Russian). Clearly, they knew more about what was going on than they were willing to tell us.

So, to recap: Air Baltic gets Viise and her travel companion from Tallinn to Riga, but because the connection to Berlin is overbooked, and because the next available flight isn’t until tomorrow, they tell her to buy new tickets on EasyJet. They promise her a refund on the two original tickets from Riga to Berlin on Air Baltic.

Then they deny her a refund on the Air Baltic tickets, insisting she refused to take their rebooked flights.

We already know that European airlines try to weasel their way out of following EU 261. I can also tell you from personal experience that the law isn’t the clearest, and that passengers and airlines don’t always agree on how to interpret the sometimes-vague provisions.

I can also tell by reading Viise’s extensive paper trail and reviewing her story, that Air Baltic’s story is incomplete, if not inconsistent. There’s no doubt that she had to pay twice for a flight from Riga to Berlin. There’s almost no question that she’s entitled to some compensation under European law.

But what should she do next?

Should she appeal to someone higher up at the airline, asking Air Baltic to reconsider its decision? How about Expedia, the online travel agency through which she purchased the ticket? Does it bear any responsibility? Or should she sue Air Baltic to try to recover the cost of her tickets?

What would you do?

In a survey of more than 500 readers, a majority said they’d contact Expedia.

But that’s not what Viise did.

We took them to court.

Two years later, we have finally won a smaller settlement than we tried for, and were awarded about 650 euros which covers the cost of our tickets and a small award on top (the total is under the current EU award guidelines for such cases).

Luckily, we own legal insurance which covers legal fees, otherwise we would have had to pay thousands.

The lawyers for AirBaltic were horrendous, launching plenty of personal attacks at us and pulling every trick in the book to change judges, change jurisdictions, change facts, lie, cover up, dismiss, blame us — you name it. We had to compromise on a smaller settlement just so that the case would not be able to go to a higher court, and get dragged on another two years.

We’re glad we stuck to it, but cannot express our disgust at the way we’ve been treated. We can’t imagine (nor could the judges) why on earth they would rather invest so much money in legal fees rather than pay this relatively minor sum to make the problem go away.

(Photo: virtual Olli Vai nio/Flickr Creative Commons)

  • http://www.ciambient.ro Oferte turism

    I think her best option is to try convince Air Baltic to reconsider. Maybe ask a lawyer to talk to them in her behalf. The travel agency that sold her the ticket isn’t in any way responsible, from their perspective. They just cashed a small commision and sent the rest of the funds to Air Baltic so I think they will not refund the entire price under any circumstances.

  • Brian in Wien

    I realize this can’t be how you solved the case, since it isn’t an option, but what about the middle ground of filing a complaint with the EU consumer affairs bureau in Estonia?

    http://ec.europa.eu/consumers/ecc/contact_en.htm

    They are the ones who made the rules and have the responsibility to see them enforced. Perhaps that should be done anyway, so the next person doesn’t have a problem.

  • SirWired

    Isn’t this the travel agent’s job? What you are actually paying them for? Expedia should step up to the plate to mediate; if all they were for was booking flights, then there would be absolutely no reason to use them at all.

    I think a credit card dispute would not be out of order here, unless it’s too late.

  • Tom

    I voted to work through Expedia. Air Baltic clearly doesn’t have modern customer service procedures. Expedia would be able to explain to their partner what is expected of them and would have the leverage of future bookings. As far as hiring an attorney, they are currently only out 500 Euros for the replacement tickets, but would be out even more for the lawyer who would likely have to chase the company through courts in Riga. Alternatively, they could send a letter themselves to the head of Air Baltic to ensure that he was aware of the level of service Air Baltic staffers provide.

  • Christopher Elliott

    @Brian, thanks. Yes, by all means this should have been reported to the EU.

  • http://www.followphiaroundtheworld.com Joey Phi

    Oh I would be PISSED! Would def sue them, this is not acceptable!

  • http://wpjrnl.com/ wpjrnl

    that’s why I never buy nothing from Expedia. in this case, and unfortunately you should contact them.

  • barbie45

    I guess I would contact Expedia

  • http://waynedayton.tripod.com Wayne Dayton

    They tried to put them on SAS solely because SAS was the original joint venture partner to start up this carrier and they continue to provide a variety of outsourced services. Funny that a company whose CEO, Bertolt Flick (who purchased the SK stake in the company), is a lawyer, and is trying these shady, unethical games. He should be contacted with a strongly worded letter indicating that his unethical actions will be reported to the local equivalent of the Bar Association….his mailing address is: airBaltic, Riga International Airport, Marupes County, LV-1053, Latvia.

  • BillC

    I would have selected appeal to Air Baltic and contact Expedia. It appears that they were promised a refund so they should get at least a refund plus some extra compensation for their trouble.

    I am not clear on what happened with the SAS flight. Did they refuse the SAS flight? If so is that when they were promised the refund just to get rid of them?

  • Alan

    “The travel agency that sold her the ticket isn’t in any way responsible, from their perspective. They just cashed a small commision and sent the rest of the funds to Air Baltic so I think they will not refund the entire price under any circumstances.”

    Yes, Air Baltic is responsible for the problem, not Expedia. But is there any way foreigner to sue in an Estonian court that would not cost more than the recovery? I voted to go through Expedia because Expedia could possibly be shamed into dropping the fishy airline from its list of partners.

  • Monica

    Expedia should be in the loop on this since they were the travel agent, but I voted to dispute this through Air Berlin. She has a signed ticket from a representative from the company promising reimbursement for the unused flight. She was lucky to get something in writing and now she should demand that they keep their promise.

  • Louisa

    I think the time to contact Expedia was at the airport when the flight was overbooked and she was told to buy another ticket. I would’ve called them then and have them try to sort it out with Air Baltic before spending more of my own money.
    At this point, I don’t know how much Expedia could do, even though they should still help. I’d try to escalate it within Air Baltic first, then take it to the EU customer affairs.

  • Christophe

    On this side of the Atlantic, the travel agent is the one you should take your grievance to ! He is responsible for delivering you what you have bought from him, or for indemnifying you !
    Therefore, Expedia, even if his take is minimal, is the person on the hook here.
    Contacting them would therefore be my next move !

  • cjr

    It’s probably going to end up being all of the above. History has shown that the likely result of contacting the airline and Expedia will result in both of them trying to pass the buck to the other, with nobody really wanting to help resolve the situation.

    The one thing I would most certainly try to avoid is buying an extra ticket under any circumstance. It’s hard enough trying to get the proper compensation on your original ticket.

  • Alex

    I’d report them to the EU first and foremost… or maybe inform the airline that their choice was to fix the issue, or I would report it.

    I would have contacted expedia in the first round… so I guess sue them if I don’t have a report them option.

  • BucksterSF

    Air Baltic is completely responsible, and she is due compensation. That is their law, and if they do not comply then sue them.

    Of course Expedia has a responsibility here to give whatever help they can, although they will try to dodge it as well.

  • Brooklyn

    I would do all three in ascending order: Expedia first, then Air Baltic and, if that didn’t work, look into “suing” Air Baltic by complaining to the EU consumer affairs bureau, which may have an alternative to travelling to Estonia to appear in court. Even if the situation is resolved at a lower level, the bureau should still be notified for the sake of future passengers.

  • Karen P

    They should appeal to Air Baltic with a cc to Expedia. Assuming Air Baltic refuses their appeal they should then contact the appropriate EU Member State authorities. However, the decision the EU comes up with is in no way legally binding, the airline doesn’t have to abide by it. The EU does keep track though and will fine an airline heavily if airlines regularly aren’t following the rules.

    I’d dealing with a similar issue currently with Delta on a flight from Paris. If an airline doesn’t follow the rules there aren’t a lot of options for people.

    Expedia should be cc’d but they aren’t going to do anything but pass the buck as someone said.

  • Heather

    First I would ask Air Baltic to reconsider in a polite and concise email. State your grievances and say what you expect them to do in order to fix it, but try not to make it a laundry list. I would copy the EU EU customer affairs in said email just to let them know that you are not messing around.

    If they refuse to honor the agreement then step 1 just laid the groundwork for step 2; you now have proof of trying to resolve the situation on your own in addition to the signed and stamped notation on the ticket. Follow up with the EU customer affairs and see what they have to say about it.

    If all else fails you can always sue.

  • Tanya

    First, report them to the EU. Then, I would start with Expedia. If they have not already. They have some proof, and Expedia *should* help them somewhat. If that does not work, then appeal higher at Air Baltic. While it would not be hard to sue Air Baltic and possibly a default judgment, this would be the last course of action in my mind, simply because it is more of a hassle. Depends on how much time they have!

  • Teresa

    The first step is to ask AirBaltic in writing, concisely but firmly, to cough up compensation according to EU regulation 261 and to refund the cost of the extra ticket.

    If they don’t do that, the next step in the process is to file a complaint with a designated “competent body” according to Article 16 of the regulation. That usually means a department within the aviation affairs bureaucracy that is charged with the enforcement of EU 261. Section 2 of article 16 seems to imply that you can complain to the authority in any EU country you like (Estonia might be the most convenient here if the OP speaks Estonian). The website flightmole.com has a lot of information about the process.

    I think suing Air Baltic in this case would be more trouble than it’s worth. The procedures outlined in the regulation require patience but they might well work. One lesson from this is to always let the airlines take care of the rebooking process if you are bumped. Never believe any promises of future reimbursement.

  • Mike Z

    I selected appealing to the airline. Since the real problem is getting the refund of the purchased tickets, those were purchased at the airport, not through Expedia. Also, they have the documentation showing that they should be reimbursed.

    Now, as far as the overbooking compensation, I think Expedia could help with that since those were the tickets Expedia originally sold. I also find it very believable that people speak a language they think people do not understand so that they can discuss problems without being called on the resolution. The look on the face of people who try to do this and then get caught is priceless.

    I would also send a polite, strongly worded letter to the head of the airline explaining what was doen and how the employees acted when they got caught. A letter to the EU organization is in order as well.

  • Karen P

    @ Teresa, you cannot complain in any EU country you like, you have to complain to the authorities in the country where the incident took place (http://ec.europa.eu/transport/passengers/air/air_en.htm The box titled National competent authorities states this).

    I agree with you fully that all the calls for “sue ‘em!” are pointless. Even though the OP speaks Estonian and 2,000 Euros IS a lot of money the OP would have to fly there, take time off work, etc, in order to do it. That alone might make any award a moot point.

  • Christopher Elliott

    You guys are good, but I don’t think you can guess the outcome of this case. (It surprised me, too.) I’ll post the resolution soon.

  • Josh

    Since she clear documentation that the flight was cancelled, and both European and US laws are clear that a refund is due in such a case where a service is not delivered, I think the proper channel is a dispute with her credit card company (perhaps contacting Expedia first to see if they’d prefer to just refund it and pursue the airline or wait for the chargeback to do so). The credit card company will evaluate her documentation and issue a chargeback if appropriate (as it probably is). If Expedia processed the charge, instead of the airline, they now have motivation and better leverage to pursue Air Baltic.

    She shouldn’t be deprived of her right to dispute it just because a travel agent made the charge; that’s part of what a travel agent signs up for when they handle tickets.

    “Force majeure” is irrelevant; it can protect a company from additional liability (for example, if replacement tickets cost more), but doesn’t entitle them to keep money for something they can’t, for whatever reason, deliver as agreed.

  • Steve H

    The legal route is nonsense, since even hiring a lawyer to send something menacing out on his or her letter head will cost too much given the amount that the travelers are seeking. Furthermore, who is going to sue anybody (to say nothing of where to sue) for an amount this small. Expedia should be motivated to intervene, since it has more clout with Air Baltic than does this lone, aggrieved traveler.

  • Mike H

    Explain the situation to EasyJet, ask them to refund the ticket price.

  • Brooklyn

    I wonder if it would be useful to send a letter of complaint to Estonia’s Ministry of Tourism, if it has one, or to whatever ministry is in charge of tourism? A letter to the Estonian consulate in the US might also be useful or, if the OP is a US citizen, to her congressional representatives. It appears that broadcasting the problem on Facebook and Twitter sometimes works, too; it depends on how popular these are in the countries Air Baltic serves.

  • http://noaddedsalt.blogspot.com Elisa in Finland

    Force Majeure doesn’t actually absolve the airlines from their responsibilities, as the EU has already ruled in regards to the Icelandic volcano disruptions.

    The airline is *still* required to provide phone calls, accommodation, food and a replacement flight or refund. Where the circumstance was something they couldn’t have prevented, they get out of the compensation money, but they still have to do these other things for the customers.

    Unfortunately Sirje’s error was to personally buy the competitor’s tickets rather than asking Air Baltic to make the arrangements. But it shouldn’t have been Sirje’s job to know that this would cause problems.

    Air Baltic certainly do have proper customer service channels, Estonia isn’t a third world country – although trying to make the airline care is another matter altogether (it is a discount airline after all and they tend to be conveniently faceless). Jumping straight to the question of sueing them? Um that’s a very American thing to do and that isn’t how the rest of the world works – you don’t get mad and immediately threaten to sue, it’s a ridiculous idea. Who would seriously go find an Estonian or even Latvian solicitor in the first place, and what on earth makes you think their courts will even see fit to order the airline to pay the legal costs?

    I would suggest a polite letter explaining the situation and outlining the fact that things should not have happened as they did in regards to being told to buy a competitor’s ticket and the Estonian gate agents switching to Russian in front of you. Air Baltic is rather precious about its good service reputation so you might find it’s enough.

  • bodega

    Josh@Air Baltic tickets through Expedia would go through ARC and Expedia would not be the company charging the fare, the airline is. So the charge back would go to the airline and the airline would then send a debit memo to Expedia. A question I have is what type of ticket was purchased? A nonrefundable ticket? If it is a nonrefundable ticket, and travel had commenced, we can’t refund without the carrier’s permission.

  • flutiefan

    not even 5pm EST and the poll results are already up! what’s the deal?

  • Brooklyn

    Wow – could we have some more information? Did she sue in a US or an Estonian court? What legal insurance plan does she have? I’d love to sign up! If the judge agreed that the airline was in the wrong, why was the award less than EU legislation requires? Congratulations to the OP for pursuing this case, but now the decision needs to be given as much publicity as possible; news outlets (TV, radio, newspaper) might find it worth a mention and Facebook and Twitter could give it broad coverage. Air Baltic needs to be raked over the coals for this.

  • Tom

    Over a matter of a few hundred bucks, these guys put themselves through two years of agita and burned up thousands of dollars worth of lawyer service from their insurance carrier. A pyrrhic victory.

  • Chicky

    RE: the resolution. Yowzers. Remind never to fly AirBaltic!

  • Christopher Elliott

    @flutiefan, sorry, I posted just a little early. I had a ton of things on my to-do list today.

  • Teresa

    Wow, suing them without the protection of a small claims procedure takes guts. Where was the suit filed? Is there a written judgement that we can see, even in a foreign language?

  • Thomas

    I’m glad to see they won, however the sum, they won.

    I’m involved sueing a company in the EU for breach of contract. It’s been going on now for 12 years. I’m glad to see theirs went through so fast!

  • http://www.clarkecomputer.com Charles Clarke

    I’m confused on whether there was a judgment (“finally won”) or if they settled (“smaller settlement”) before the judge’s decision.

    Sounds like they would have been up for going for more except that then they would have had to gone through more agony (or the legal insurance wouldn’t cover more).

    As for switching languages… My camera can act as an audio recorder. Would have been nice to have recorded both their Estonian and Russian conversations. Not that I would even have known which was which. :-)

  • David Z

    Sheesh, Chris. This “case” was over two years ago, then.

    I guess gather people’s thoughts to more or less determine how to go about a similar situation next time? Oh, and apparently Expedia dropped Air Baltic since I don’t see their name in their site’s list of airlines.

  • Mike Z

    Loved the resolution, but would relly have liked to hear more about what courts they had to use, etc. Also wondering, is this airline a publicly traded company? I would venture to guess that shareholders would be pretty upset that the airline would waste so much money defending itself in a lawsuit merely asking for what is guaranteed by law and that which was promised in writing by its own agents.

  • cjr

    “A pyrrhic victory.”

    I sometimes wonder if you understand the meaning of the word ‘principle’.

  • not a big AirBaltic fan

    Hi guys, this is the traveler in question. I thought I’d chime in and answer a few questions that were raised. (Chris, is there any chance I could ask for a pseudonym in your post? I’d really appreciate it if that’s possible at this point, and I apologize for not having asked in the first place.)

    This was literally the only possibility we had of getting our money back. That it took two years was certainly only possible because we own legal insurance, but this is not the colossal expenditure it would be in the US in similar circumstances.

    We are EU citizens living in Germany, and we went to court in Germany, via the first level of legal action, the Amtsgericht, like a local or municipal court. It was not possible, by EU law, to sue Expedia. AirBaltic is located in Riga but they can be sued at the end destination, which luckily happened to be home.

    The resolution can’t exactly be compared to a judgement or settlement as in the US; in our case it was more like the judge STRONGLY recommending a reasonable settlement (probably to avoid it going to the next level of court and wasting more time), and both sides agreeing. So we would agree, and AirBaltic would wait, send some faxes, and then refuse. We went through several rounds of this.

    Some minor clarification about what actually happened that day: No flight was canceled, but we were bumped from two flights in a row that evening, at boarding. (And, not for nothing, made to go back through security three times to do so.) The first was a delay due to some sort of mysterious problems in Riga, our connecting airport. The airline informed us we would miss our connection, and rebooked us on an SAS flight. The flight they rebooked us on was overbooked, and we were refused boarding (this is when I heard the gate agents talking about how they didn’t know how we were even able to be booked on the second flight at all. Nobody offered us any explanation whatsoever). Meanwhile, we had seen a few Lufthansa flights come and go which would have gotten us home.

    By the time we’d been bumped a second time, several hours later and late in the evening, the ONLY flight left from Tallinn that would get us home that evening was EasyJet, which does not accept bookings from other airlines, so we had to purchase the tickets ourselves.

    It has been an… interesting… experience. We are glad that it’s over. I think everyone is.

  • not a big AirBaltic fan

    Also, we certainly DID appeal to AirBaltic before suing. But when they categorically refused to reimburse, our choices were reduced to a) do nothing or b) sue AirBaltic.