Ridiculous: Virgin Australia Unilaterally Cancels Tickets Nine Days After Booking

Yesterday I wrote about how Virgin Australia sent out emails to customers who booked ~900USD roundtrip business class tickets from Auckland to Oakland, informing them that their tickets wouldn’t be honored. Those who booked the tickets had the choice between being rebooked in economy or getting a refund. The airline claimed the fare was due to “human error,” and that they’re “unable to honour this ticket in its current form.”

Nowadays DOT regulations don’t require that airlines honor mistake fares, but rather they require airlines to reimburse customers for any non-refundable expenses they incur from having booked the fare. So technically Virgin Australia was within their rights to cancel these tickets, but to me it’s incredibly bad form to only inform customers six days later that their bookings will be canceled. Passengers have 24 hours to cancel a ticket, and airlines should be held to a similar standard, in my opinion.

Well, it gets even more ridiculous. Virgin Australia had some very low economy fares a couple of days before they had those great business class fares, which The Flight Deal wrote about.

On October 30 Virgin Australia published ~172USD roundtrip economy fares between Dallas and Melbourne. I’d assume these fares were a mistake of some sort, though nowadays it’s not unusual to see ~$500 roundtrip airfare for longhaul flights, so it wasn’t that many multiples off of the usual fare.

Now Virgin Australia is sending emails to customers who booked this fare, informing them that the tickets won’t be honored. They’re doing this nine days later. The email reads as follows (thanks to @mxdo1 for sharing):

Recently you purchased an Economy Class fare from Dallas, United States of America, to Melbourne, Australia with us. Due to human error, there was a discrepancy with the fare price advertised and unfortunately we’re unable to proceed with your booking.

We are very sorry for any inconvenience caused. We will cancel your booking and issue you a full refund, which you will receive within the next 7 days to the payment method provided at the time of booking.

Again, we sincerely apologize for this mistake and we thank you for your understanding.

I’m not going to make an argument that Virgin Australia should have honored the fare, but to cancel tickets nine days after people booked is shameful. The lack of communication from an airline typically indicates that a mistake fare will be honored, and generally I figure that if an airline doesn’t contact people within a few days, it’s safe to assume the fare will be honored. But canceling tickets NINE days later?

Typically when people ask me for advise on mistake fares not being honored I recommend just moving on, assuming the airline handled things well. You win some, you lose some. In this case I hope some people take the airline to small claims court, and also submit non-refundable expenses so that Virgin Australia has to pay. They simply can’t think it’s okay to do business this way.

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HaleyB Guest

Anyone else still not gotten a refund? I booked two sets of tickets, no emails on either but can no longer pull up my reservation so I assume they cancelled my ticket.

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BLAMEX Guest

I had booked accommodation to match the dates. It is non refundable. So I have booked on CX. A mistake that Virgin will regret. They are trying to promote the service to the USA while QF has had the market for some time. Destroying key business travelers view is not good business. Good by VA last time me and my company will fly with you. Yes we have over 50 employees who fly weekly in AUS. So by a very disappointing decision they have lost all my companies future business + the damage that has occurred over social media.

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Gordon New Member

Just wanted to keep everyone updated. I just got a call about 30 min ago from Delta stating that they cannot honor the business class fare. This is 10 days after the ticket was purchased and issued. Very frustrating. @Moe - filing a complaint right now.

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Raz Guest

@Moe Thanks for sharing your draft. Filed a complaint with DoT.

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DaveS Member

I think the reasonable rule would be a time limit for an airline to declare a "mistake", perhaps accompanied by a fine/fee to discourage any idea of making "mistakes" on purpose, as some have suggested. I don't have a proposal but I think that not allowing any leeway for true mistakes would be wrong, and also that not notifying people for nine days is wrong. Also, I've got to say that we can usually recognize the difference between a real sale fare and a mistake. The more people who take advantage of a mistake, the more likely it is not to be honored. Probably there needs to be more discretion in publicizing those.

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