It is simply not true that "no other airline does this". Many airlines, particularly low cost ones, either do not allow unaccompanied minors or impose additional restrictions. The age shown on the drop down menu is related to charging for an adult ticket or a child ticket. It has nothing to do with whether the airline will allow unaccompanied minors or not.
I usually side with the passenger, especially in situations in which airlines are applying their obscure and very one sided T&C's, but I am afraid I am sided with the airline on this one. This holiday was ruined by adults who didn't take sufficient care to understand the rules and ensure their child could travel.
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