Couldn't the captain sit in the economy seat and the passenger who pays his salary sit in the seat they had paid for? What do airlines do for captains when it's an all economy flight?
I dunno, it was a bizzare situation. The employee seemed to be saying that it was in the pilots contract that they get that particular seat. TBH, I probably would have volunteered to fly in economy if it meant I got my entire miles/cash payment refunded. A free flight in economy is better than a paid for flight in business imo.
Still it beggars belief that US Air would sell a seat that they were not supposed to. Incredibly bad customer service and very embarassing for the passenger. Also imagine sitting in economy and getting served business class food on proper plates while everyone around you was eating out of plastic? That would not be a pleasant experience. Really that passenger deserves more than just a refund.