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Vietnam to US mistake fare discussion - 2019 Cathay New Year's gift

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Vietnam to US mistake fare discussion - 2019 Cathay New Year's gift

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Old Jan 1, 2019, 2:04 pm
  #31  
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Originally Posted by QRC3288
If thousands of these tickets were indeed sold, am I correct in assuming F inventory for actual cash passengers and Asia Miles upgrades from J are going to be seriously impacted?

I use all of the above for me and Mrs QRC: A fares, companion awards accompanying A fare (occasionally F fare), J-F Asia Miles upgrades from J class, and in the last two years: Diamond upgrade certs to A class inventory.

Does anyone on here know how many tickets were impacted by this? If thousands, and North America only (where I predominantly fly CX F to), back of the envelope math would say we're impacted. If 10k tickets or more, those of us who actually buy A fares regularly / use Asia Miles / Diamond certs are pretty screwed. Ugh.

My maths
10x routes = 20x sectors daily to/from North America
X 6 seats per flight = 120x F class seats daily to/from North America
= 44k seats annually

So 2.5k tickets sold means about 5% of the annual F inventory to/from N. America was just swiped by these people. 15k tickets would be 30% of F inventory.

And I can only imagine that A fare could be impacted by as much as 50-75%>


If a few hundred seats were impacted, it seems like CX could afford to honor and live with their mistake. But if we're talking about thousands of seats, I seriously hope they cancel these tickets. Otherwise it seems there will be a serious impact for the rest of us who actually pay for these tickets normally.
I don't think that your back-of-the-envelope calculations are correct.
Each ticket has two segments to the USA (oubound and inbound), so 2.5K tickets means 5K sectors or pver 10% of 44K.

The impact on A availability to the US, is dramatic now that they have restored availability. Mostly A0 or A1, and many flights for the summer even have F0 which is unheard of. Like you, I buy a lot of rev F CX to /from Europe and it always books into A. F bucket is mostly used for last-minute flyers. I periodically encountered problems in changing flights for two pax (no change fee), because of A availability. It will now be almost impossible to the US.

I am sure that CX is debating to cancel those F tickets sold for 1K USD. Countries involved in the legal issues are USA, HK and Vietnam. Apparently cancellation is no a legal problem fro USA and HK. The question is whether Vietnam would "object".

The yield management system is fully automated. If they follow Calchas suggestion, it will need lot of work.
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Old Jan 1, 2019, 2:12 pm
  #32  
 
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Originally Posted by crazyanglaisy
The word from one of the Cathay staff WhatsApp groups that I'm privy to (and that should be taken with a healthy pinch of salt!) is that about 50% of the entire First Class inventory for 2019 HK-US flights was sold last night.
Pffff, amazing CX does not have some kind of emergency brake, catching, when suddenly the premium class tickets get sold at enormous quantities in a short period.

Or even a minimum price per leg, per booking class, effectively blocking sales, when the published pricing is below the minimum set price.

With the 50% and 10 NA returns a day, that would imply some 10K flash sales return tickets in F, in just a couple of hours. Assuming 50% of these tickets would have been sold at $20K, gives a missed revenue of some $100M, currently collected ticket fees some $10M. CX could have done a lot of IT for $90M
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Old Jan 1, 2019, 2:20 pm
  #33  
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Originally Posted by londonexpert
what is because air? Please don’t use Hong Kong Slangs here.
Originally Posted by HarbourGent
Please do use HK slang here, I have picked up quite a few phrases thanks to their English rendition on Flyertalk.
CX is an airline based in Hong Kong. I believe it is appropriate to use this kind of slangs here.

Beside - does that mean we should spell out the cities instead of using the airport code?

Originally Posted by Dr. HFH
Not necessarily in the U.S. In the more recent instances, DOT has ruled that the fare can be refunded at the airline's option. On a strict U.S. common law contract theory, it's an obvious unilateral mistake and voidable, seems to me.
While I agree with the conclusion, I completely disagree on the rationale.

49 U.S.C. § 41713 explicitly preempts states from regulating airlines over prices, routes, and service. And the Erie doctrine ruled out the concept of "federal general common law". On that basis, the U.S. common law contract theory is not applicable here.

Nevertheless, 49 U.S.C. § 41712 explicitly prohibits unfair and deceptive practices of airlines. So in the likely event that CX cancels all tickets involved, the only remedy is to file a DOT complaint, which we all know what the possible outcome will be.
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Old Jan 1, 2019, 2:30 pm
  #34  
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Before people go off the rails about what US law is and is not, remember that DOT's Office of Enforcement has already offered guidance to air carriers on mistake fares. Without approving the practice of cancelling a ticket issued under a mistake fare, DOT has advised that it will not bring enforcement actions against air carriers which cancel mistake tickets so long at the passenger does not have material other non-refundable aspects of his trip booked in reliance on the ticket, eg., prepaid hotels and the like. OR, the carrier refunds those prepaid costs which cannot be recovered.

Bottom line is that DOT is not likely a viable source of comfort.
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Old Jan 1, 2019, 2:53 pm
  #35  
 
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Originally Posted by crazyanglaisy
The word from one of the Cathay staff WhatsApp groups that I'm privy to (and that should be taken with a healthy pinch of salt!) is that about 50% of the entire First Class inventory for 2019 HK-US flights was sold last night.
What!?!? My heavens it's even worse than I thought. I hope all these F fares are cancelled. Dumb on CX to release this, but certainly an entire year of an airline's F operations to its most lucrative continent shouldn't have yields crushed for an entire year due to this. Madness. There will be a real financial impact to CX if indeed 50pct of N. American F seats were purchased for about 500-700 USD per sector.

To say nothing of the corner I'm arguing, which is a captive mostly HK-based traveler who actually pays for F class to N. America and is an active member of the MPC / AM programs. For sure, we are the losers here at the expense of an internet army that can strike like the Blitzkrieg exploiting CX's dumb mistake.

Winners are the internet arbitrageurs. Losers are CXs actual cash customers, people based in HK and/or otherwise captive to CX for many of our flights, and loyal members of the MPC / AM program. I'll add, partner redemptions are also probably screwed too, so add them in the mix of losers from this. And of course, add CX's finances. F yields are hosed if this happens. Fat chance on our hope for an improved F soft offering if half the customers are opportunists paying peanuts.

50pct!!!!

I was assuming 30pct at the worst, which I can also assure you is a massive impact.

Fingers crossed CX cancels them all.
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Old Jan 1, 2019, 4:02 pm
  #36  
 
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Coincidentally last year Qatar also ‘offered’ similar type of error fares for flights originating from Vietnam!
[FARE GONE]QR Business (R) SGN-Various USA/EU/South America from $553 USD RT

In the end they honoured the tickets. And it seems that the FlyerTalk discussions on the issue were quite different from here

Wonder why always Vietnam, and wonder why Qatar had to honour the tickets. Should not be because of the consumer law in Vietnam I suppose...

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Old Jan 1, 2019, 5:17 pm
  #37  
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Originally Posted by Dr. HFH
Not necessarily in the U.S. In the more recent instances, DOT has ruled that the fare can be refunded at the airline's option. On a strict U.S. common law contract theory, it's an obvious unilateral mistake and voidable, seems to me.
Originally Posted by garykung
While I agree with the conclusion, I completely disagree on the rationale.
You're in over your head, here; see below.


Originally Posted by garykung
And the Erie doctrine ruled out the concept of "federal general common law". On that basis, the U.S. common law contract theory is not applicable here.
If I had intended to refer to Federal common law, that's what I would have said. I was talking about common law in the United States, and shortened it to U.S. common law. Different from "Federal common law." Having spent the last 30 years as a litigator, I'm familiar with the significance of Erie v. Tompkins; and it doesn't "rule out the concept of 'federal general common law' " except in a very indirect manner. The case has nothing to do with what's going on here, anyway.


Originally Posted by garykung
Nevertheless, 49 U.S.C. § 41712 explicitly prohibits unfair and deceptive practices of airlines.
While 49 USC 41712 generally prohibits unfair and deceptive practices and unfair methods of competition, it says nothing about mistake fares. A mistake fare is neither unfair nor deceptive. It's a mistake, a word which implies lack of intent to deceive. If you're going to play amateur lawyer and cite statutes, regulations and caselaw, you would be better served by making sure that you know both what they say and what they mean, which are sometimes two different things. Words which seem to have a clear meaning in plain English often have a very specific (and both different and limited) meaning in a legal context.


Originally Posted by garykung
So in the likely event that CX cancels all tickets involved, the only remedy is to file a DOT complaint, which we all know what the possible outcome will be.
Post-purchase price increases to air tickets are generally prohibited by the DOT. 14 CFR 399.88. Originally, DOT had been forcing airlines to honor mistake fares under that provision in the Code of Federal Regulations. On May 8, 2015, DOT issued a notice that it would temporarily stop enforcing §399.88 with regard to mistake fares provided that airlines made the passengers whole by refunding the tickets, etc.
As a matter of prosecutorial discretion, the Enforcement Office will not enforce the requirement of section 399.88 with regard to mistaken fares occurring on or after the date of this notice so long as the airline or seller of air transportation: (1) demonstrates that the fare was a mistaken fare; and (2) reimburses all consumers who purchased a mistaken fare ticket for any reasonable, actual, and verifiable out-of-pocket expenses that were made in reliance upon the ticket purchase, in addition to refunding the purchase price of the ticket. These expenses include, but are not limited to, non-refundable hotel reservations, destination tour packages or activities, cancellation fees for non-refundable connecting air travel and visa or other international travel fees. The airline may ask the consumer requesting out-of-pocket expenses to provide evidence (i.e. receipts or proof of cancellations) of actual costs incurred by the consumer. In essence, the airline or seller of air transportation is required to make the consumer “whole” by restoring the consumer to the position he or she was in prior to the purchase of the mistaken fare. The enforcement policy outlined in this notice is temporary and will remain in effect only until the Department issues a final rule that specifically addresses mistaken fares. If, based on comments received in the rulemaking process, the Department determines that section 399.88 should remain as written, airlines and other sellers of air transportation would be expected to comply and the Enforcement Office would enforce the requirement.
That policy is still in effect.
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Old Jan 1, 2019, 5:27 pm
  #38  
 
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I have none of Dr. HFH​​​​s legal insight or background (which I found a blast and quite interesting to read, as someone from outside the legal profession). But I wouldnt be surprised if CX read the blogs, and saw the obvious gloating and clear-eyed statements by posters essentially acknowledging they know the fare (or fares....) they bought is an obvious mistake.

I know this has happened before at other airlines during mistake fare situations, and there are often informal discussions with competitors and regulators before a final decision is made to cancel the tickets. The publicity and gloating about this CX fare situation definitely doesn't help those hoping their tickets are honored.
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Old Jan 1, 2019, 5:51 pm
  #39  
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What demonstrates is, CX has NO SAFE GUARD on anything in its system - how could there is no flags/alerts when the sales of premium cabin jumped in such rapid rate, and the inventory being wiped out thru the year so rapidly, to its biggest international destination - US?

There is seriously lacking of any kind of very basic checks, let alone AI, built in its yield management system.

Little wonder its customer base got hacked in such scale that no any other company has had as bad in such scale.

What is wrong with Cx these days? Before people claimed the former CEO was imcompetent. Now the new management has been in lace for almost 2 years by now? is just incimpetent or worse!

A poster named Gene, commented on One Mile at a Time that they were based in Hanoi and have booked SEVENTEEN tickets. S/he gloated that they would spend 2019 flying between Vietnam and JFK, feasting on Caviar and drinking Krug...

No way CX would honor these mistake fares. They should do what AF has done - downgrade those tickets to Y, and at the time of travel. That is Excactly what AF did on its mistake fare this March. People found their tickets downgraded to Y when they did their check in. Well deserved I would say.

I wish CX would just downgrade all the tickets to Y which are the fares belong. And these people have already passed their 24 hours free cancellation window, so either they fly the Y tickets, or pay $250 to cancel and get back the balance what they paid.
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Old Jan 1, 2019, 6:11 pm
  #40  
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Originally Posted by Happy
I wish CX would just downgrade all the tickets to Y which are the fares belong. And these people have already passed their 24 hours free cancellation window, so either they fly the Y tickets, or pay $250 to cancel and get back the balance what they paid.
*bolding mine

oh mate, isn't that a bit too rough?

Though, I must say, though I don't have anything against anyone purchasing an "extraordinary fare" such as this one, I find it quite disagreeable for one to take advantage and purchase multiple tickets, let alone 17 roundtrips. That amount in particular is just distasteful.
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Old Jan 1, 2019, 6:18 pm
  #41  
 
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Originally Posted by Happy
What demonstrates is, CX has NO SAFE GUARD on anything in its system - how could there is no flags/alerts when the sales of premium cabin jumped in such rapid rate, and the inventory being wiped out thru the year so rapidly, to its biggest international destination - US?

There is seriously lacking of any kind of very basic checks, let alone AI, built in its yield management system.

Little wonder its customer base got hacked in such scale that no any other company has had as bad in such scale.

What is wrong with Cx these days? Before people claimed the former CEO was imcompetent. Now the new management has been in lace for almost 2 years by now? is just incimpetent or worse!

A poster named Gene, commented on One Mile at a Time that they were based in Hanoi and have booked SEVENTEEN tickets. S/he gloated that they would spend 2019 flying between Vietnam and JFK, feasting on Caviar and drinking Krug...

No way CX would honor these mistake fares. They should do what AF has done - downgrade those tickets to Y, and at the time of travel. That is Excactly what AF did on its mistake fare this March. People found their tickets downgraded to Y when they did their check in. Well deserved I would say.

I wish CX would just downgrade all the tickets to Y which are the fares belong. And these people have already passed their 24 hours free cancellation window, so either they fly the Y tickets, or pay $250 to cancel and get back the balance what they paid.
the $250 fee seems harsh, but I agree with the rest.
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Old Jan 1, 2019, 6:45 pm
  #42  
 
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Originally Posted by Happy

A poster named Gene, commented on One Mile at a Time that they were based in Hanoi and have booked SEVENTEEN tickets. S/he gloated that they would spend 2019 flying between Vietnam and JFK, feasting on Caviar and drinking Krug....
I read that comment too. While it is possible the poster indeed booked 17 tickets, it could also have been just a stupid comment/joke...
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Old Jan 1, 2019, 6:48 pm
  #43  
 
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Originally Posted by Happy
What demonstrates is, CX has NO SAFE GUARD on anything in its system - how could there is no flags/alerts when the sales of premium cabin jumped in such rapid rate, and the inventory being wiped out thru the year so rapidly, to its biggest international destination - US?

There is seriously lacking of any kind of very basic checks, let alone AI, built in its yield management system.

Little wonder its customer base got hacked in such scale that no any other company has had as bad in such scale.

What is wrong with Cx these days? Before people claimed the former CEO was imcompetent. Now the new management has been in lace for almost 2 years by now? is just incimpetent or worse!

A poster named Gene, commented on One Mile at a Time that they were based in Hanoi and have booked SEVENTEEN tickets. S/he gloated that they would spend 2019 flying between Vietnam and JFK, feasting on Caviar and drinking Krug...

No way CX would honor these mistake fares. They should do what AF has done - downgrade those tickets to Y, and at the time of travel. That is Excactly what AF did on its mistake fare this March. People found their tickets downgraded to Y when they did their check in. Well deserved I would say.

I wish CX would just downgrade all the tickets to Y which are the fares belong. And these people have already passed their 24 hours free cancellation window, so either they fly the Y tickets, or pay $250 to cancel and get back the balance what they paid.
sour lemons 🍋 isn’t a good look.

mistake fares happen, Cathay can weigh up the business decision of the reputation as damage and loss of good will and the cost to refund any additional expenditure incurred those who purchased the fair vs the lost revenue and available inventory. The longer it takes to make a decision, the greater the cost of cancelling tickets.

It is simply a business decision, with your idea of revenge or indeed charging cancellation fees in a contract declared void helps nobody.
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Old Jan 1, 2019, 6:51 pm
  #44  
 
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Originally Posted by QRC3288
the $250 fee seems harsh, but I agree with the rest.
Originally Posted by Happy
What demonstrates is, CX has NO SAFE GUARD on anything in its system - how could there is no flags/alerts when the sales of premium cabin jumped in such rapid rate, and the inventory being wiped out thru the year so rapidly, to its biggest international destination - US?

There is seriously lacking of any kind of very basic checks, let alone AI, built in its yield management system.

Little wonder its customer base got hacked in such scale that no any other company has had as bad in such scale.

What is wrong with Cx these days? Before people claimed the former CEO was imcompetent. Now the new management has been in lace for almost 2 years by now? is just incimpetent or worse!

A poster named Gene, commented on One Mile at a Time that they were based in Hanoi and have booked SEVENTEEN tickets. S/he gloated that they would spend 2019 flying between Vietnam and JFK, feasting on Caviar and drinking Krug...

No way CX would honor these mistake fares. They should do what AF has done - downgrade those tickets to Y, and at the time of travel. That is Excactly what AF did on its mistake fare this March. People found their tickets downgraded to Y when they did their check in. Well deserved I would say.

I wish CX would just downgrade all the tickets to Y which are the fares belong. And these people have already passed their 24 hours free cancellation window, so either they fly the Y tickets, or pay $250 to cancel and get back the balance what they paid.
Abusing the system is questionable in many many ways but the $250 thing is equally wrong. As a side note: Is your handle "Happy" meant to be ironic?
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Old Jan 1, 2019, 7:04 pm
  #45  
 
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Originally Posted by Happy
...
No way CX would honor these mistake fares. They should do what AF has done - downgrade those tickets to Y, and at the time of travel. That is Excactly what AF did on its mistake fare this March. People found their tickets downgraded to Y when they did their check in. Well deserved I would say.

I wish CX would just downgrade all the tickets to Y which are the fares belong. And these people have already passed their 24 hours free cancellation window, so either they fly the Y tickets, or pay $250 to cancel and get back the balance what they paid.
I don't think Air France as a company decided to stick it to people and downgrade them as a surprise when they checked in. Those were probably irregularities, as most of the tickets were outright canceled.

CX isn't going to enact a policy of downgrading thousands of people at check-in, both because that would create chaos and because they would not be able to sell those Y seats in advance.

As someone who has family and friends in different parts of Southeast Asia/the Subcontinent whom I visit a few times per year, and purchased two tickets because it would be a nice surprise if they're honored, I also would not feel wronged if CX canceled the bookings and refunded me. I'd be a little bummed, but I am sympathetic to the reality that this closes off inventory that many loyal customers would otherwise purchase, and the reality that it would affect their profitability on these routes.
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