What's the book corporate America doesn't want you to read? Find out now -- or you could get scammed.

Are airlines redefining “year” so they can pocket your money?

October 13, 2008

What’s a year? If you said 365 days, you obviously don’t work for an airline. Air carriers apparently have another definition, as many passengers learn when they decide to recycle their ticket credit for another flight.

Here’s what happens: You buy a restricted ticket but your plans change. So you call the airline, and a friendly customer service representative says you can re-use the ticket — after paying a change fee — within a year of your travel date.

Ten or eleven months later, you phone the airline only to find out your credit has expired.

What gives?

Turns out the the agent should have said the tickets were valid from a year of their purchase not your flight. Too bad.

That happened to Ronald Di Costanzo a few months ago. Here’s what he wrote to United Airlines about his canceled flight:

I was told at the time of cancellation that I had one year from the date of my flight to rebook my ticket and use the credit. I telephoned again to confirm this date. I was told that that was correct.

But when I called to book a ticket, I was told “sorry” — the ticket expired. They said I had been given incorrect information, and that there is nothing that could be done.

I am sure I didn’t talk with the entire Indian subcontinent, but I came close. First, I asked for a supervisor; next, I was asked if I wanted a supervisor; third, I was passed off automatically to another supervisor.

All said the same thing although in increasingly dogmatic terms. I asked if I could talk to someone who could interpret policy — and not just recite it. No.

Could I talk to someone in Illinois? No, that was not possible. I asked (why not — although I suspected the answer!) if they understood that I was being financially penalized because two United contract employees gave me incorrect information.

No. No one could possibly help. Sorry for the inconvenience.

Di Costanzo sent an e-mail to United, pleading his case. Here’s how it responded:

I apologize for the problems you experienced as you were given incorrect information about the validity of a ticket.

I know that when United fails to deliver the service you anticipate you doubt our desire to be an airline you can count on. You expect a dependable and easy travel experience. And be assured that we will meet this goal as we refine our quality standards and procedures. Your good comments will help us focus on specific areas that will help us to improve our services.

Our employees should provide professional service. I have forwarded your complaint to the Reservations Department for the review as you were not given correct information. I am sorry, as it resulted in your disappointment with our service. Your comments are important to us and will allow the Reservations Department to provide feedback directly to the employee

Additionally, please know that a ticket is valid from the date of issue and I understand you are requesting an exception to the restrictions on your ticket. Most airlines, like United, as a general rule do not extend the expired ticket. As per our policy we can neither refund nor extend your ticket. It has no value left. Your understanding is appreciated.

Thank you for giving me an opportunity to respond to your concern. Please continue to fly with United.

Sincerely,

Lata Dixit
Customer Relations

Obviously, this is a form letter. Di Costanzo also received a $25 coupon from United, which doesn’t come close to helping him recoup the $392 he lost.

Di Costanzo sent a letter to the Transportation Department, which is a good step. His grievance will become part of the airline’s permanent record. I think he also should take United to small claims court to recover his lost money.

I get complaints of this nature several times a month. Here’s what seems to be happening. Either the airline employees are not aware of their own company’s policy (and I sincerely want to believe this is a simple misunderstanding) or airlines are instructing their agents to give passengers bad information in the hopes that they won’t have to honor their ticket credit.

Which is it?

Well, do I really have to connect the dots here?

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

Tagged as: , ,

16 comments

  • http://www.stephenpickford.com Stephen Pickford

    Definitely go to Small Claims Court. The chances of an airline representative showing up in your town are nil to none, and you will automatically win and hold an enforcable judgment, which you should choose to execute at the airport at a peak travel time, taking only cash from the Station Manager (even if he has to get the pilots and stewardesses to use their ATM cards to get it). Even if they DO show up in court, they can’t come with a lawyer (at least where I am), so their Station Manager has to hum and haw his way through their defense.

  • jonathan

    In all the years I’ve been traveling, the rule has always been “One Year From The Date of Purchase.” Not once, has a representative of the airlines ever said otherwise, and I have always asked.

    Also, now that so many of us are making purchases online, the disclaimer is usually clearly stated in the “Terms” section, which purchasers MUST acknowledge, before the ticket is issued.

    As for taking the airline to Small Claims: do it! The cost of defending a case is usually greater than that of making a refund, and the airlines will settle with you right away.

  • Jasper

    @ jonathan: The fact that one checks the box saying you agree to the terms and conditions, does not imply that one has actually read them. Most people don’t have the time to read those long documents, and neither do most people speak legalese. Furthermore, companies do not actually want you to read them, because I am noticing that it’s getting harder and harder to get a decent copy or print from the terms and conditions. It is a legal fallacy that judges ten to uphold these conditions, because usually they trump the idea of a fair contract. Last, *any* customer should be allowed to trust that representatives of a company know the rules of a company. If a representative makes a mistaken, the company must eat the inconvenience, not the customer. As companies record all their incoming phone calls, this should be easy to trace down.

  • David

    The same thing happened to me with United this year. Fortunately for me I was able to re-book my flight (but sooner than oringinally planned) to get in before the “year” was up.

    Problem is United’s “reservations” department, “customer relations” department, and “customer service” department are all completley seperate departments. Not one of the three would take responsibility for thier mishap (which originally began after they cancelled my first two itineraries due to downsizing).

    After the THIRD time calling, I was given the run around for 80 minutes, transferred to each of the aforementioned departments 3 times before I went off on a rep, spoke with a department manager, and recieved a $50 credit off my next flight (A flight I assure you I will never take).

    Since then I have transferred most of my frequent flier miles to resturant certificates and gifted the rest at deeply discounted rates to friends. I have canceled my United Milage Plus account and will not fly United (and thus deal with their “service departments”) ever again, even if it costs me more to do so (Think of it as a hybrid form of insurance).

    As I do not live in Denver or Chicago I can spare myself the pleasure of dealing with the incompetent and uncaring fraud that United has become. Cheers to thier failure. This world is a better place without them.

  • BOB FORD

    Take United to samll claims court. 99 times out of 100, you will win a judgment.

    Then have the sheriff go to the airport and attach one of theIr planes to collect the judgement. Yes you can do that.

    That will get you some attention FAST.

  • Kevin Morgan

    I will say this: even the great Southwest, which allows you to apply ALL of an unused ticket’s value towards another ticket, makes you use the credit within a year of the original ticket’s purchase date. They are actually a lot clearer about this in the original purchase, telling you that any travel paid for with the funds you’re about to part with must be completed by X date (one year from the date of purchase).

    And in fairness to the airlines, this is reasonable (though I think the change fees levied by most airlines are a huge ripoff). It costs the airline money to keep track of a credit like this, and incurring that cost for years to come seems something of a burden.

    However, there’s no excuse for employees giving out faulty information, and given how often one gets bad information from airlines, I always recommend requesting a copy confirming what was said in writing or at least by email.

  • frostysnowman

    I agree with Jonathan. I would assume you have a year from the date of purchase to use the tickets, not from the day you were supposed to fly. But if you receive bad information from an airline employee, and you are not a traveler with the amount of experience to know that you’re getting bad information, then I think small claims court is a great way to get some payback.

  • Preston McKinney

    Not one of the comments listed above stated that the client should have used a professional travel agent to book their travel. A professional travel agent would had advised the client that they have one year (364 days to be sure) from the date of ticketing to reuse the ticket or lose the money.

  • David

    I agree with much of what is being said. My point was less of an arguement against the rules of defining a year, and more about the absolute lack of customer service and care that we as consumers should expect upon sending cash to (poorly run) companies such as United. Assuming the above story is true as written, I think the issue is that customer service is inferior to what should be expected, not that they are “changing the rules.” Way to lose another customer United. Was it worth it?

  • Mary H

    And note that many people read these comments and United might have lost more then one customer from this incident……if memories are long enough……

  • Jaspreet Singh

    I am not sure what made the OP mention about Indian sub-continent. United may have out-sourced the backoffice operation to Mexico, India, China, Malaysia et al. Also, the grievance addresal would be what United has mandated to the contractor so you may contact them on why and how you were almost about to talk to then entire Indian sub-contient.

    However, I do sympathise with your issue and would have done the same (take United to small claim court. I hope you get a favorable hearing.

  • Jenna

    I’m rolling in laughter here..never ever do airlines give you one year from the date of travel. It’s always been one year from the date of issue. For all airlines.

  • Pingback: Tales of Woe - Thanksgiving Edition | Flight Wisdom

  • Syed

    I was duped by United today….I had $877.58 in travel credit and they are saying it has expired. This is BS…..I had to go from one department to other and in the end talked to the supervisor who could only repeat ‘I’m Sorry’, ‘I Apologize’, ‘We are going in circles’ like a well trained parrot. Also the call quality sucked…there was this constant clicking noise and I could barely hear him. I am not giving up…I want my money or at least United Credit back. Whats the best way to deal with them?? Small claims court seems to be the way but do you know anyone who won this way?? Let me know please.

  • http://elliott.org Pete A. P.

    I just got hoodwinked by Delta….Canceled a flight last January 13th 2008.
    Unfortuately for me planning ahead buying that ticket the year before in July 07 was the wrong thing to do. My ticket credit expired in July 08 eventho the itinery changed (reissued) in November 07. It’s not like I don’t understand the total loss of $475.00 for 2 tickets. Charge me the penalty, but either give me credit to use towards something tangible (an internet mall store associated with the airlines) or give me a refund check minus penalty. This type of airline policy to keep 100% of the money irritates the general public. I like many other airline customers, have no sympathy for the airlines. It’s not right and would not be tolerated from other motar & brick companies.

    Our political leaders scream foul play with regards to unused payed gift certificates that expire….I’m sure unused payed expired airline tickets is a much larger problem with a much larger price tag…..but that would require more work from
    our already overstressed local elected representatives. Maybe I should request
    a ticket bailout.

  • Jim

    I have a similar situation on United.
    I looked on the California Small Claims Court web site and found that I have to serve the “Agent of Service” for United in California.
    It links to the California Business Search on the California Government website, but searchs for UAL and United comes up empty.
    Does anyone know how I can find this information?

Previous post:

Next post: