BA to compensate buyers of $40 US-India tickets

British Airways will compensate 2,200 people who had bought the $40 tickets between the United States and India on October 2 after the carrier had mistakenly posted the wrong fare on its website.

The airline had cancelled the bookings and offered all affected passengers a travel voucher of $300.

An official statement said British Airways, in an agreement with the US department of transportations aviation enforcement office will compensate consumers for cancellation penalties and other expenses incurred due to the carriers erroneous offer of $40 fare between the US and India.

"This agreement with British Airways will compensate passengers for losses they suffered as a result of the carriers mistaken fare offer," transportation secretary Ray LaHood said.

The lowest US-India fare being offered by British Airways prior to the mistaken ad, not including taxes, was over $750.

The $40 fare, which did not includes taxes and fees, was posted on British Airways own website at about 6.30 pm on October 2.

The carrier realised its error and removed the fare within minutes from its own website, but it remained on the websites of certain on-line travel agents for about two hours. During this time, more than 1,200 bookings were made covering approximately 2,200 passengers.

In consultation with the Aviation Enforcement Office, British Airways has now agreed to reimburse passengers for their expenses resulting from having relied on the erroneous $40 fare.

"These could include fees for cancelling flights or cancelling hotels, rental cars or other ground arrangements, as well as additional costs incurred in rebooking flights due to fare increases on previously held flights that were cancelled in order to book the $40 fare," the statement said. British Airways has also apologised to its customers who booked the $40 tickets.