In what way was this an honest mistake? AA refused to take reasonable steps to ensure that their information was correct.
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They also mentioned that in these cases the Airline has to contact them and ask for the right course of action. I asked AA personnels to contact Canadian Immigration Office but they refused to do so.
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Their offer is the minimum they are legally required to reimburse the customer. They were 100% wrong and they are legally responsible for the consequences of their actions. I agree the lost wages is iffy, but driving to Buffalo to pick them up was entirely necessary to mitigate the problem that AA had created. It is not acceptable to simply say "this was your own decision".
The response does have one positive. It is not a "canned" response, but the truth is.. AA are legally responsible for the consequential damages of their negligence and this response it wholly inadequate. Not least because it does not contain one word of an apology for the distress and inconvience caused.
I would not accept this offer.