The IAIDQ is holding its annual US conference (the IDQ Conference) in San Antonio this September. As a Director of the Association and a potential speaker at the event I’ve been researching my options for flying to the US as cheaply (but comfortably) as possible.
Imagine my dismay when I spotted that I’d missed an opportunity to take advantage of an IQ Trainwreck to get myself to the US on Business class for less than it costs me to get home from work!
Ireland’s RTE news is today reporting that Aer Lingus has cancelled the bookings made by passengers who tried to avail of a €5 (US$8.00 approx) Business Class fare from Dublin to the US, a flight that normally costs €1,775 (just under US$3,000). [update 2008-04-18]Patrick O’Beirne of Systems Modelling Ltd in Gorey has pointed out to me in an email that the <u>actual</u> cost of the flights was a bit higher when taxes, charges and the relative position of the sun are taken into account[/update]
This fare was available on the aerlingus.com website between 7:30am and 9:00am yesterday after (apparently) ‘promotional’ fares were loaded to the website in error. Around 100 people (some sources have it at 300 people, so I can’t vouch for the accuracy of this figure) managed to book the €5 fare, resulting in a potential loss to the airline of at least€177,700 (just under US$280,000).
The airline sent emails to the customers informing them that they had cancelled the bookings as the price was in error, however the Consumer Association has pointed out that the 100 people had valid contracts. The CEO of the National Consumer Agency has sought a meeting with the airline to discuss the situation.
The airline has argued that the fact that ‘economy class’ seats were advertised on the website at €249 should have suggested that there was an error in the €5.00 price.
However, the Press Release from the National Consumer Agency is quite clear that Aer Lingus would be in breach of contract in cancelling the flights and that “blaming a technical error in their booking system is not good enough”.
[update 2008-04-18] It has been reported this morning that a group of 50 property developers who had booked flights at the €5.00 price are starting legal proceedings to force Aer Lingus to honour their contracts. As we don’t have the concept of a class action suit here in Ireland, unless these property developers are part of a consortium that is a legal entity in its own right, that means that Aer Lingus is potentially facing 50 court cases, each requiring legal representation that will cost a lot more than the €17770 shortfall in the ticket price.
Ah… you just have to love lawyers.
Why is this an IQTrainwreck?
Cost to Aer Lingus of honouring the contracts will be €177700. The cost to the airline of the PR fall out from cancelling the contracts would also be significant. The legal costs that will arise now are also likely to be significant.