Originally Posted by
hugolover
I believe they can provide a travel voucher (generally for a bit more than cash for obvious reasons) but not Avios. I suppose this would formally make Avios a currency of sorts.
It's all a bit of an urban myth within BA. It's perfectly acceptable to agree a settlement with Avios, it's even stated in the Regulations in 7.3:
The compensation referred to in paragraph 1 shall be paid in cash, by electronic bank transfer, bank orders or bank cheques or, with the signed agreement of the passenger, in travel vouchers and/or other services.
I'm not sure all the legal folk actually read the Regulation some of the time.