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Interesting Court Decision In Germany - Passenger does not need to fly last leg

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Interesting Court Decision In Germany - Passenger does not need to fly last leg

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Old Feb 15, 2019, 12:22 pm
  #271  
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Originally Posted by alexwuk
The airline have offered a specific series of flights for a given price.
If you booked AAA-BBB-CCC, but irops led to the airline re-routing you AAA-DDD-CCC, let's assume at the same (or very similar) ultimate departure and arrival times, you wouldn't be entitled to anything. The airline would have upheld its end of the "offer," which is getting you from AAA to CCC.
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Old Feb 15, 2019, 12:23 pm
  #272  
 
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Originally Posted by richardwft
Simple answer is for the airline to detail the charge for missing each leg prior to the customer booking.
To make it simple, just make it a fixed-fee type of thing and make it prominent during the booking process.

Problem solved.
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Old Feb 15, 2019, 12:25 pm
  #273  
 
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Originally Posted by Jagboi
I think it is relevant, as I can't think of anything else outside of air transport ( and I think the UK trains are also an anomaly in worldwide rail travel pricing) that getting a greater amount of service costs less than a lesser amount of service. If I hire a yard service to mow my grass, it costs more if I have a bigger yard over a small yard. If the crew shows up and mows my front grass and I tell them not to bother with the back (even though I have paid for the back to be mowed), they are not going to send me a bill for not mowing the back yard. The very idea is laughable.
Again, this is a misunderstanding of the issue...

You aren't getting more or less in that sense.

If I buy a JFK-AMS ticket or a cheaper JFK-LHR-AMS ticket I am getting the same product (JFK-AMS) but via a different service. It is only if you jump ship at LHR does the product change as it is now a JFK-LHR product and it is now via a direct, more expensive, service.

However, using your analogy (I hate these analogies as so few of them actually are analogous to the original problem) ... anyway... if you have signed a contract with the gardening service to mow the front and back yards and got a discount because your front and back yards together were over say, 500sq yards, and then when they turn up you say don't do the back yard, if the front yard is 300sq yards (so no discount), then yes, I would expect them to charge you the higher rate as you have broken the contract and have now got the small yard rate instead of the discounted big yard rate.

As I say, I don't like analogies but people seem to love them so I would say that my example is more analogous to airline pricing as it should be... drop the last leg and you have then possibly bought a more expensive product.
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Old Feb 15, 2019, 12:54 pm
  #274  
 
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Originally Posted by richardwft
Simple answer is for the airline to detail the charge for missing each leg prior to the customer booking.
Surely the answer for any airline wishing to go down this route would be to show a "discount" amount for the routing involved, similar to the way BA holidays show the saving if the flight and hotel were to be booked separately. There basic argument is that they are selling you a service from City X to City Y (via Hub Z) competing with the local airline flying direct hence the "discount", and not long haul product A followed by short haul product B.
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Old Feb 15, 2019, 2:06 pm
  #275  
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Originally Posted by adrianlondon
If we buy A-C then the airline has to fly us direct A-C. If we buy A-C via a transit then we could, as the flights that show in the booking are A-B-C-B-A, arrange to meet someone in B to hand over a letter, say, or grab something that only the duty free shops in B sell. In that case, the airline has to fly us via B as that's the ticket I bought and I potentially had a reason (apart from it being cheaper) to do so.

I understand that this has nothing to do with dropping the last leg, which I don't do, but is just a come-back to your comment that the airline could remove B from the equation without comeback.
No, the airline does not, unless you had specifically bought the A-B-C-B-A itinerary with stopovers in B. You do this with multi-city tools. If you buy A-C and it happens to route you through B because that is convenient for the airline because of its hub/spoke system, you have no inherent right to a voyage via B. Handing over a letter is an old one!
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Old Feb 15, 2019, 2:39 pm
  #276  
 
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Originally Posted by KARFA
no it doesn't. read the whole of the terms.
I did and could not find a different outcome than that suggested by alexwuk. Care to be more specific?
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Old Feb 15, 2019, 2:42 pm
  #277  
 
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Originally Posted by alexwuk
Let's look at this through the lens of micro-economics.

In a "Perfectly Competitive" market, prices are driven towards the Marginal Cost of provision.

In a "Monopolistic" market, prices are driven towards the level that minimizes each purchaser's "Consumer Surplus" (ie towards the maximum price each purchaser is theoretically willing to pay).

Does a long-haul Business Class pricing system that seeks to charge $2000 for one flight but charges $1000 for the same flight when bought with an additional flight resemble Perfect Competition or Monopoly pricing?

Those leaping to airline's defenses should think hard about this - airline pricing models are bear all the hallmarks of heavily-imperfect competition / monopoly.

Fare matching across carriers is a textbook example of Oligopolistic "Cartel Pricing" - an implicit agreement that prices will be kept high and whenever anyone attempts to cut prices, the others immediately match it. Net result: all suppliers in the market quickly learn not to cut prices (outside of advertised sales).

Now let's look at the European Shorthaul market: 20 years ago BA would charge 3x the price of a return for a one-way ticket. Clear Monopolistic pricing. Nowadays though, all carriers charge per-direction and many have unbundled a lot of the "value add" services such that the lowest possible price can be presented to consumer.

In summary: the long-haul Business Class market bears many of the hallmarks of Monopolistic pricing. I'm quite surprised airlines are getting any sympathy - they are trying to protect a business model is which they extract as much as they can from consumers (ie us)
Whilst I don't follow the language fully, I think there is a lot in this post by Alexwuk from which an element of a legal argument could be considered. Herein is something which (I strongly suspect) could set the table for the Court of evidencable unfair behaviour from one party in the contract. How much weight in the overall set of issues this would carry is another matter. Ultimately, I think, the major EU legacy carriers must be aware that EU based Courts would be forced to consider monopolistic behaviour as against the consumer.
Again, for sure there would be other elements in the equation and many of those pros and cons are set out in this thread.
However, I can't see why BA or Lufty or the like would want to risk an expose of their perfectly successful business model in this way (even if they win the immediate battle).
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Old Feb 15, 2019, 2:55 pm
  #278  
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Originally Posted by mario
To make it simple, just make it a fixed-fee type of thing and make it prominent during the booking process.

Problem solved.
This is exactly what AF has done. It is specified and based on class of service and long-mid-short haul.

Had LH done this, it would have prevailed in its case as the court did not either invalidate the practice or find that LH had acted contrary to the either the COC or any other principle. Rather, the court found that the passenger had no ready means of calculating what the change would be. With a fixed fee, one could simply look it up, e.g. long-haul in F = EUR X. Then the passenger can make a rational decision, pay the fee or not as the case may be and reroute himself.
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Old Feb 15, 2019, 3:02 pm
  #279  
 
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Originally Posted by Takiteasy

I did and could not find a different outcome than that suggested by alexwuk. Care to be more specific?
Yep: the rules are very clear: any failure to take all flights booked in sequence will allow BA to refuse further use of the ticket unless the fare difference is paid. BA also reserve the right to "request" (sic) the fare difference even if you don't fly, but the only contractual sanction they reserve is denial of further travel on the ticket.

Originally Posted by LondonElite
No, the airline does not, unless you had specifically bought the A-B-C-B-A itinerary with stopovers in B. You do this with multi-city tools. If you buy A-C and it happens to route you through B because that is convenient for the airline because of its hub/spoke system, you have no inherent right to a voyage via B. Handing over a letter is an old one!
&
Originally Posted by Bear96
If you booked AAA-BBB-CCC, but irops led to the airline re-routing you AAA-DDD-CCC, let's assume at the same (or very similar) ultimate departure and arrival times, you wouldn't be entitled to anything. The airline would have upheld its end of the "offer," which is getting you from AAA to CCC.
THIS! is the crux of the argument. The airline fare rules say that you're right. However, if you go to the airline's website and price up an A-B and then B-C flight, it may well offer you a cheaper fare with a 22-23 hour gap in City B. That's what you asked the airline for, that's what the airline proffered and then you and the airline contracted. The airline "fare rules" state that you're not buying a ticket to City B at all, and some CoCs may even assert that they retain the right to fly you from City A to City C in whatever way they like they like given their byzantine Monopolistic fare rules say you are "in transit", even if you expect to sleep in your oldest friend's house in City B that night and bought your ticket only because of that City B routing. Most CoCs do not say this. I have never seen any airline booking screen warn that intermediary points are considered replaceable "Transit points". (I'm a BA GGL/CCR/GfL, AA 1MM, VS Gold....)

The law is clear: the airline offered you the A-B and B-C flights and that's what enticed you to pay them money to contract. That the airline thinks that city B is merely a replaceable transit point is never made clear to purchasers in the "invitation to treat" stage of purchase and unless it is, I'd think any person would have excellent grounds to win in court that replacing A-B-C with A-D-C is a breach of contract on behalf of the airline.
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Last edited by alexwuk; Feb 15, 2019 at 3:16 pm
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Old Feb 15, 2019, 3:08 pm
  #280  
 
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Originally Posted by alexwuk
Yep: the rules are very clear: any failure to take all flights booked in sequence will allow BA to refuse further use of the ticket unless the fare difference is paid. BA also reserve the right to "request" (sic) the fare difference even if you don't fly, but the only contractual sanction they reserve is denial of further travel on the ticket.
Thanks. Had understood your point and agree with it. In reply, KARFA suggested it was incorrect if you read the CoC further. I did so but could not find the element that showed you were incorrect.
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Old Feb 15, 2019, 3:22 pm
  #281  
 
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Originally Posted by Globaliser
If the price you should have paid for the product is £3,000, and you have only paid £2,000 because you have paid for a different product, then I can't see how you couldn't measure the loss at £1,000.

In any event, without getting to deeply into the technicalities, if the contract specifies that in these circumstances you must pay that difference, then that is what the contract obliges you to pay. It could be that the measure of loss that might be applied in a tort claim is completely irrelevant. <snip>.
Its a rare day I'm not concurring with two points in a single Globaliser post . Anyway, here goes.
1. On the loss point. I'd be supposing its for the airline to prove its loss in such an case. All the Court knows is I paid £2,000 for the routings / dates / times selected; and the airline said - "sure". The fact that another customer may have paid £3,000 for a similar service being offered at the time for the same date / time is supposition. Sure it was priced and available but wouldn't it be a fair defence to suggest the airline would have taken that £3,000 rather than my £2,000 had it been confident of the £3,000 offer getting sold?
There's broader nuances for sure, but I'm dubious a loss of £1,000 is evidenced here.

2. On the contract point. This is where the test of nerve comes in! Different to 1, this time its for the consumer to be comfortable the contract term is unfair (or the amount requested is somehow disproportionate) or otherwise unenforceable and expect the Courts or mediation services to agree with them. I therefore don't strictly believe that you necessarily must pay an amount merely because it is in a contract. Granted I'd not be assuming a 'win' in the sort of case being discussed.

On the second item. In a real world non-airline scenario I have pushed back at a large entity who sent me a big and (I argued) inappropriate bill. It never got to court. After 18 months of to & fro and their threat of Court, in the end they elected not to follow through. They made several firm arguments and demands I must pay. I countered and held my nerve. The whole experience was not nice.
My point here is that I wouldn't suggest going looking for a fight on these sort of issues - and thus don't push ex-EUs overhard.

Last edited by littlefish; Feb 15, 2019 at 3:25 pm Reason: grammar
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Old Feb 15, 2019, 4:02 pm
  #282  
 
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Originally Posted by Bear96


What legal system is this?

If I am a grocer and someone pays me only for an apple but walks out of my store with a cut of beef instead, I have no recourse unless I can prove a future customer who wanted an apple was turned away because I was all out of apples?
No, the analogy is wrong. A much more apt analog is: The buyer pays the vendor for four apples and walks out with three apples. The consumer's consumption is an included subset of what was contracted; that's the weakness of the vendor's tort and loss claim: the vendors costs are demonstrably *lower* because of the (theoretical) breach and the consumer didn't consume anything to which their ticket (and CoC) did not say they were entitled.

The airlines only defence at law is essentially that the consumer didn't really want the burden of eating the fourth apple and therefore that the airline should be required by contract be entitled to tort loss if the consumer to fails to consume the (Negative Utility) fourth apple.

To revert to microeconomics 301: the hypothetical "loss" is entirely based in the Negative Utility of the consumer not the Marginal Cost of the Producer, which is the ultimate hallmark of Molopoly pricing. Common Law generally abhors enforcing this kind of contract (hence BA don't have the balls to try to include it in the CoC), and public policy often prohibits it.
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Last edited by alexwuk; Feb 15, 2019 at 4:28 pm
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Old Feb 15, 2019, 4:19 pm
  #283  
 
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Originally Posted by Globaliser
The airline's loss is very easy to work out. To take simplified round numbers: Suppose that a LHR-JFK-LHR ticket costs £4,000. Suppose that you can instead buy a FRA-JFK-FRA ticket for the equivalent of £2,000, with a routing that connects through LHR in both directions. In those circumstances it is likely that a FRA-JFK-LHR ticket (with an outbound connection at LHR) would cost £3,000.

So if you buy the less expensive FRA-JFK-FRA ticket but take advantage of the physical opportunity that you have of not flying the last FRA-LHR sector, you have taken travel worth £3,000 but only paid £2,000 for it.

And airline CoCs do often (usually?) have a provision that allows them to collect from you the fare for the travel you have actually taken.
That isn’t how contractual loss is calculated under English law. Nor is it how BA’s COC operate, and nor do they contain a provision allowing them to collect a fare for travel not taken.
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Old Feb 15, 2019, 6:45 pm
  #284  
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LH did not sue for its losses, it sued to enforce its contract. If it's contract had been better written (and perhaps on appeal it will be found to have been written perfectly well). the contract would have called for OP to pay the price for the new route flown. Thus, if he purchased A-B-C and dropped B-C, his ticket is repriced to A-B. If that is more than A-C, he owes the difference.

The entire argument about loss is irrelevant.
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Old Feb 16, 2019, 2:13 am
  #285  
 
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Not really. Whatever the position may be under German law, and whatever LH claimed in German proceedings, the discussion here is what remedies BA might have under English law (the governing law of its COCs).

In England one can claim damages in lieu of specific performance of a contract (enforcement), and in any event it is commonplace to speak of enforcing contractual rights with a claim for damages.

The misdirection here here is not to focus on what the passenger’s obligations under the COCs are, and what remedies are available for breach of those obligations. The terms of the contract are the starting point for a discussion about breach and remedies.
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