overbooking is a very common practice sad to say. However their wording at the gate, well they need more training in the response they give. Also its best to always reconfirm your flight, eventhough you had seats together when you booked it, I've learned that doing it in advance is sometimes moot to the point where I don't book seats in advance anymore. I always got the same response "plane change this" or "had to switch people around to make room for the elderly" that. I always accept the response because complaining gets you nowhere really. Plus I collect travel vouchers; got bunches of em. But with kids, best thing to do is to try and confirm seats 24 hours in advance.
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