You are quite right Bandit. You were redeeming krisflyer points and the ticket set out clearly that you were entitled to 2 bags. It is ridiculous to suggest that a customer should disregard the written terms and conditions put on their actual ticket. That is the contract and I simply don't believe any court would find otherwise.
I think you should be entitled to a cash refund, but for $100 not sure it is worth the effort to reclaim it. I suspect small claims court would find in your favour, but I would take the 5,000 miles in this case.
Jim
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