Is American Airlines Systematically Denying Compensation Claims?

I’d like to think that I have pretty reasonable (low) expectations of customer relations departments at airlines, but even by that standard, this seems especially bad to me.

An unreliable trip to Canada on American Airlines

I recently wrote about a trip that Ford had booked to Canada on American, as he was scheduled to fly American from Miami to Toronto and then American from Montreal to Miami:

  • American canceled his outbound flight
  • American delayed his return flight, so he misconnected, causing an overnight in Philadelphia

Obviously operational issues happen, but what was so frustrating is how American handled the situation on the return. Usually it’s hard to hold airlines accountable, though in this case there’s at least some recourse.

The Canadian Transportation Agency (CTA) has some great consumer protections, entitling passengers to cash compensation in the event of delays or cancelations within a carrier’s control. This is somewhat similar to the EU261 policy in Europe, and it clearly outlines what passengers are entitled to in the event of operational disruptions.

So, while Ford would have preferred for this trip to just go smoothly, he’s actually due quite a bit of cash compensation under these regulations.

Let me also emphasize that there are clear guidelines about how airlines have to handle complaints regarding government mandated air passenger rights. For example, here’s American’s page about air passenger rights involving Canada. The CTA also requires airlines to either issue compensation within 30 days, or state why compensation isn’t due.

Canada mandates compensation for passengers in some situations

American Airlines tries to ignore compensation claims twice

Since the outbound and return were two separate tickets, Ford emailed customer relations twice, around three weeks apart. In both cases he outlined that he’s looking for the cash compensation he is entitled to under Canadian regulations, and he even linked to American’s webpage outlining passenger rights. He explained what happened (that the operational issues were within American’s control) and what he should be entitled to.

He sent his first complaint on June 26, and received the following response on June 27:

Thank you for contacting us.

I’m truly sorry to hear about your experience. It is always our goal to run a timely and reliable operation, and we are sorry to see we missed the mark on your trip. We’re paying careful attention to the feedback our customers are providing us and the details you shared with us have been made available to our leadership to be used to improve our service.

As an AAdvantage® member, your business means a great deal to us, and we’d like to ask for another chance to rebuild your confidence. As a tangible form of our apology, we’ve deposited miles into your AAdvantage® account. These miles will be visible within 24 hours.

From all of us at American Airlines, we’re glad you chose to fly with us and look forward to caring for you on your next journey.

He then responded with the following:

Thank you for the response, but this does not address my concerns. As I explained in the email, I’m seeking the cash compensation I am entitled to under Canadian law, where my ticket originated. You can find American’s passenger rights page for tickets originating in Canada here.

I appreciate your prompt help with this.

He hasn’t heard from American since then. American does have up to 30 days to issue compensation, so the airline has until around July 26.

Ford submitted his second complaint on July 15, and received a response on July 16. Anyone want to guess how that read? Well, it was the same as the first email, word-for-word.

He then responded with the following:

Thank you for the response, but this does not address my concerns. As I explained in the email, I’m seeking the cash compensation I am entitled to under Canadian law, given the ticket I was booked on. You can find American’s passenger rights page for tickets originating in Canada here.

Allow me to remind you that in line with Canadian regulations, American has 30 days to provide the compensation promised by Canadian law. I look forward to your prompt response.

Look, my expectations of airline customer relations departments are pretty low when it comes to them actually caring about feedback. But when the airline chooses to blatantly ignore government regulations, I’d consider that to be a problem.

I’m just confused by American’s strategy here:

  • Does American just not read emails, and copy and paste the same response for everyone, no matter what’s contained in the email?
  • Does American think that the best course of action to avoid paying compensation is to just offer some AAdvantage bonus miles, and hope that people will go away? “Boy, I mean, I’m entitled to $1,000 CAD under the law, but I guess 5,000 AAdvantage miles will do!”

I’ll be sure to report back on how this goes. If American isn’t living up to its obligations under Canadian law, a CTA complaint will be filed.

I’m curious, if anyone else has been entitled to government mandated compensation from American, did the airline actually follow the law, or try to just ignore it?

American is just trying to ignore this request

Bottom line

In some cases, airlines are required to pay cash compensation under the law, with clearly defined rules. Ford had a recent trip to Canada where American was unreliable in both directions, which entitles him to cash compensation.

American seems to be ignoring the law, and just trying to offer some AAdvantage bonus miles as compensation. As an isolated incident, I would have assumed that maybe the agent just didn’t read the email correctly. But now twice in a row, American has tried to ignore these claims.

What’s your take on how American customer relations is handling this?

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Bernie Guest

It would appear American Airlines(+ others) are building cyber walls between themselves and their customer base. By making sure you have no way to interact with a human by phone, the Cyber wall(aka) email makes sure AA and others can completely ignore any requests for compensation. I emailed a request for compensation, got the stand acknowledgement number and then nothing. Regular follow up emails quoting the acknowledgement number resulted in nothing. I can only image, AA and others have trained their staff to use the delete key at the expense of Customer Service. The new Motto, "why worry about Service, when we have their money already".

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GREG WIXTED Guest

I am based in London and was on a flight to CTL and then to Belize the following day, but the flight had to return to LHR some 60 mins after take off. This was due to only have one of the two navigation systems working and its a legal requirement for both to work on any flight crossing the Atlantic. So instead of dumping the fuel and going back to LHR the captain decided to fly around for 4 hours so by the time we landed there was no prospect of getting any flight to the USA meaning I was going to miss 2 days of my week Long holiday. When we landed it took them 10 mins to fix the issue but we were not going to take off again, as guess what the crew would have run out of hours. I did raise this subject with captain who took it upon himself say he was sorry to only those of up front. I told him not a decision I would have made and was told in a rather patronizing tone "that's why captains to fly planes, and not customers" My retort was, yes but I am trained commercial pilot. So when i got back to the UK I started what has become a battle to get the delayed flight compensation and the expenses back out of AA. their entire CS is an omnishambles and 5 months later we are now May 14th, my flight was Jan 20th. I had sent 10 automated reminder emails (Play them at their own game) and one final email on the 4th of April saying if i don't have the response I would start legal proceedings. NADA, so I issued a Statutory Demand on the UK company and its directors via email and mail, giving them 21 days to pay and the only way to stop it is to pay or petition the high court to have it set aside, I could petition the high court to have the company wound up after the 21 days, OK you may think a sledgehammer to crack a nut. I run several a group of purpose driven businesses and, I would never treat any customer the way AA treats its EU customers, dare I say the process was designed to minimise claims with a policy of just fobbing customers off, brush them aside or just ignore them in the pretext they will just not pursue a claim or will give up. its a statutory legal obligation, no ifs or buts. I did get a call from a person in their legal department who at best was inept or plain rude, I explained is it not normal to call customers at 9.30pm GMT and she just went into this rant, how dare I threaten AA, no one makes this airline bankrupt, I just told her madam, you did that once yourselves and its obvious you haven't read the demand have you ? I wont be making AA bankrupt, it will be wound up and time for a making a without prejudice counter offer was done months ago, no I wont be giving your airline another chance to show me how wonderful you can be on other AA flight and you how amazing and no i don't want crappy miles that wont use and hung up. She then sent me an email without prejudice, not admissible in court, no admission of liability and it was AI at its worst and written to bully me, it did make me laugh. I just replied wrong legal label, cant be WP as i never agreed to have a WP discussion, the demand still stands and stop offering my crappy miles no no and no. The demand expired last Thursday, I informed the CAA it was my intention to petition the courts to wind up their UK subsidiary and reminded them of their obligation in law to start the process of revoking their AOL and RL and for good measure told Heathrow they would be in breach of their T&C to use the airports facilities its a petition was filed. Well from snails pace to lightening speed over night, I have never seen a company move so fast, 2 letters from their UK lawyers, which must have cost a lot of write the many pages of drivel and we will do this this and this to you we will seek costs and damages blah blah blah, but for one line, in light of all of this our client would like to settle for the full amount within 24 hours of withdrawing the demand and signing an NDA, I replied, no NDA, you pay me first and please for the love of god stop offering me miles why on god green earth would i want them ? no means no..they agreed. So all this cost them many thousands of dollars in legal fees, now the CAA have caught their eye, awkward questions for Heathrow and a lot of bad Karma for what, its not about the money, we are the reason they exist, but putting profits and shareholders before passengers is what will see them enter in to bankruptcy protection for a 2nd time and like the last time they only have themselves to blame

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Ahmed M Abdelrahim Guest

I ran into a crazy check in staff at the MIA airport, Ms. Greenway who was laughing at my long last name with her co-worker and took 45 minutes to fix an error in my ticket which caused me to miss my flight to Saint Lucia, a trip i had been planning for the last six months, and I had missed a big event that day in addition to the loss of money i lost for pre-pay charges for lodging and other services. Also, when I complained about being discriminated at, i was threaten that I would not be in neither this flight nor any other flight with AA, which is an obvious retaliation case to me. I hope that AA will take this case serious and make it right and hope this won’t happen to another person with a similar last name or someone who looks like me. Please note that a customer agent did call few days after i raised my concern but also the AA employee was not able to offer any compensation or didn't show any customer care by setting off at least half the trouble i went thought that day on May 3rd at the Miami International airport. The employee only said, "sorry you missed the cut off check in time and sorry for being discriminated at and we cannot offer you anything else." This is a terrible traveling experience!

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Tim Jacobi Guest

i have been waiting for EU261 compensation for 5 delayed bags (by more than 30 days) since January 2023. AA sends auto replies, but that is where it stops. EL called once to tell me that Central Baggage is handling this. 5 bags times Euro 1,300 is Euro 6,500. It does feel like AA is systematically trying to wear me down to just give up. I have reached out too many time via too many channel that this is one person dropping the ball.

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Jim Guest

Curious how is delay defined for the purpose of CTA APPR compensation. For example, let's say my flights are LHR-YYZ-ORD. Flight 1, LHR-YYZ is delayed 4 hours, causing me to miss my second flight, YYZ-ORD. I get rebooked and my new second flight is on time, but overall I arrive at ORD 7 hours after my originally scheduled flight time. So how much compensation do I get in this case? I know that 3-6 hours is $400, and for 6-9 hours it's $700. But in this case, do I get compensated for the first flight delay of 4 hours, or do I get compensated for the total routing delay of 7 hours? In addition, the example above uses two international flights, one arriving into Canada and one leaving Canada. But my overall itinerary is from the UK to the US (only transiting in Canada). Does this affect the Canadian compensation?

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