Crisis Management: How British Airways Handles Extreme Cases for Compensation?
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British Airways is the largest and most popular airline in the United Kingdom with more than 40 million passengers each year. Based in London, the airline giant transports passengers to more than 200 destinations across 80 countries. As they regain their financial stability after COVID-19, British Airways faces new challenges including complex compensation claims. Most passengers are aware of their rights before flying with British Airways and therefore, claiming compensation is often a simple process. However, some cases are more complex and require deeper investigation from the airline.
Types of Crises Faced by British Airways
Frequent travelers understand that airlines will not compensate passengers in circumstances when natural disasters or extreme weather cause disruptions. These circumstances are labelled as “extraordinary circumstances” and include the following:
The above list is common reasons why flights could be delayed or cancelled without prior warning. Although it is frustrating and inconvenient for the passenger, they have no right to claim BA compensation in these situations. British Airways and other airlines maintain that customers are not eligible for a refund in circumstances that are beyond their control. However, these guidelines have been challenged in the past and resulted in successful court rulings in favour of the passenger. For example, a British Airways passenger took the airline to court over flight cancellations due to COVID-19 and won her case. The customer was not satisfied with the travel vouchers and she was awarded £2,523.42 to cover her refund and additional costs.
Framework for Crisis Management
British Airways has garnered a poor reputation for its customer service and crisis management strategies in recent years. Their recent IT breach resulted in more than 170 flight cancellations and thousands of disrupted passengers. Below are the stages of British Airways’ crisis management plan concerning the recent disruption.
Communication and transparency with passengers
Providing support and assistance
Resolutions and compensation
Discussing future prevention methods
Regular passenger updates and information
To prevent further chaos and disruption among passengers, British Airways issued immediate statements regarding the technical fault and how they were going to resolve it. Addressing the issue directly with the customer prevented the media from generating sensationalist headlines and fake news around the incident. British Airways focused on reassuring their customers by setting up dedicated telephone lines and information points for alternative travel options and compensation claims. By offering customers a variety of options, British Airways reduced the risk of passengers claiming compensation at a later date. In the aftermath of this incident, British Airways provided staff members with additional training to help them improve their customer support skills and prepare them for future crises.
Compensation Policies in Extreme Cases
As per the airline’s terms and conditions, extraordinary circumstances and extreme situations are often out of their control and not eligible for compensation. If the airline can be found at fault, the customer may have grounds for a refund. British Airways and other major airlines will often add a clause into their terms and conditions to reiterate that there are many other extraordinary circumstances beyond their control. The first response from British Airways regarding extreme compensation cases is often to analyse the situation with their legal team and determine whether there are grounds for compensation. Often, passengers are refused a refund, which can lead to a legal battle that spans many months. However, EU regulations state that if a passenger does not receive at least 14 days' notification for a cancelled flight, they must receive a full refund for their ticket.
In 2012, British Airways customers took the airline to court over illegal price-fixing and the airline was ordered to pay out £71 million in compensation. Watchdogs were alerted to the unlawful ticket prices and assisted customers with compensation claims.
Case Studies of Extreme Compensation
As the flagship airline of the UK, British Airways experiences various compensation claims and lawsuits each year. The major airline has experienced two significant and extreme situations over the past decade that resulted in large-scale refunds and media attention. The first event is an ongoing lawsuit with the United States Transportation Department for £878,000 over flight cancellations due to COVID-19. BA has since issued more than 5 million refunds to customers who suffered during the pandemic. The second incident occurred in 2018 when 400,000 British Airways customers had their data stolen during a large-scale cyber attack. Although BA was fined £20 million, the funds were not used to compensate victims. Passengers who suffered from the data breach had to file separate compensation claims with the airline and many received between £4,000 and £8,000.
Communication Strategies During Crises
During extreme circumstances, British Airways has quickly delivered vital information and support to passengers. This professional and communicative strategy has resolved many customer complaints to reduce the risk of future compensation claims. It is clear that, like many other major airlines, British Airways deploys the following crisis management strategy to deal with extreme situations and resolve chaos.
Staff training and crisis management planning
Quickly resolve crises with speed and precision
Transparent and clear communication is key
Setting up customer service points and additional support options for passengers during a crisis has proven beneficial to British Airways and other large airlines during extreme situations.
Challenges in Crisis Management and Compensation
British Airways is transparent about situations in which passengers can claim a refund in their terms and conditions. As more customers become aware of their rights and how to challenge unfair decisions, airlines must decide when to honour claims and when to prioritise their finances. Airlines must design a crisis management system that aligns with their business goals and considers staff mental health.
Best Practices and Improvements
British Airways has been criticised for taking too long to refund customers and provide support. To improve their crisis management systems and enhance customer service, BA could implement the following:
Empathy and understanding when dealing with claims
Quicker refund processing
Improve service to avoid future claims
Major airlines can learn from their mistakes when compensating passengers in extreme cases. BA can prevent customer dissatisfaction by offering refunds within 24 hours of booking and liaising with customers.
Conclusion
British Airways has a streamlined crisis management strategy for resolving passenger issues and travel disruptions, like many other major airlines. If you feel you have been treated unfairly, you can speak with a reputable claims management company who can assist you with taking your claim further.
