‘American Airlines owed me £520 in compensation – but offered me just $50’

A shortage of plane crew meant one reader almost missed a family wedding, yet their airline initially refused to pay up

Gill Charlton has been fighting for Telegraph readers and solving their travel problems for more than 30 years, winning refunds, righting wrongs and suggesting solutions.
Here is this week’s question:
My wife and I booked a package trip to Sedona, Arizona, through British Airways Holidays to attend a relative’s wedding. We were due to fly out to Phoenix on August 4 on American Airlines, but the day before departure we received a message saying our flight was cancelled and the earliest flight AA could offer was August 6, the day of the wedding. BA Holidays managed to get us seats on a Virgin Atlantic flight via Atlanta on April 5, 24 hours later, but at least we made the wedding. 
On our return I claimed compensation for the cancelled flight and the unused accommodation in the resort. BA Holidays said I would have to claim through American Airlines as it was responsible for the operation of the flight. But AA has only offered us $50 vouchers. I believe we are due £520 each plus reimbursement of accommodation and food. Can you advise on our next steps?
– Siddharth Patel
I understand that your brother, who flew out of Heathrow later on August 4 with BA, asked staff at the American Airlines counter why the 11am flight had been cancelled and was told that it was due to a shortage of staff. This is a reason within the airline’s control and so UK Regulation 261/2004 does apply.
You and your wife are each due £520 in compensation for being delayed by more than four hours in reaching your destination. The idea behind these flat-rate regulatory payments is that they should cover losses sustained by passengers due to the delayed or cancelled flight such as your unused prepaid night’s accommodation in Sedona. 
If a flight from the UK is cancelled after you have arrived at the airport, then the airline must pay the cost of overnight accommodation and meals. But, as in your case, if you are alerted before leaving home then the airline only has to make the compensation payment for the delay itself.
I asked American Airlines to review your case at a higher level and it has now agreed that you are due a total of £1,560, which includes compensation for your mother’s flight which was also delayed.
If you have time at the airport, it is often better to go to the airline’s service desk to ask for a letter confirming compensation is due and find out what the steps are to apply for it. 
Note that airlines like American that are based outside the UK or the EU only have to pay compensation under the regulation on the outbound sector. If it was your flight back to the UK from Phoenix that had been cancelled, you would only have received the usual $50 goodwill voucher to cover incidentals.
Gill takes on a different case each week – so please send your problems to her for consideration at [email protected]. Please give your full name and, if your dispute is with a travel company, your address, telephone number and any booking reference. Gill can’t answer every question, but she will help where she can and all emails are acknowledged.