How I’m approaching the ANA mistake fares

A currency conversion glitch led to ANA selling First and Business Class fares to the USA at a fraction of the usual price. What now?

ย  Story update: ANA has announced that it will not be honouring the fares, and cancelling all existing itineraries with a full refund.

What do Garfield and ANA Corporate HQ have in common?

They both hate Mondays โ€” at least this one in particular โ€” whenย a currency conversion bug on ANA’s Vietnam website led to First and Business Class fares between Jakarta and North America pricing for as little as US$300.

This sparked a feeding frenzy that lasted for the better part of a day, and when the dust had settled, an unknown number (presumably large, given how the news spread like wildfire online) of tickets had been sold to customers worldwide.

Thus began the emotional stages of a mistake fare. The “golden hours” (the 12-24 hour period after a mistake fare where most bookings end up being automatically cancelled) passed without incident, but the real drama was yet to come: an initial assurance by an ANA spokesperson that the mistake fares would be honoured was quickly walked back, and now we’re in a state of will-they-won’t-they limbo.ย 

For those of you who missed the action, here’s a recap of how things went down, what’s happening now, and how I’m approaching my ticket.

ANA’s mistake fare: A recap

Routes with ANA’s THE ROOM Business Class were snapped up particularly quickly

Around midday on Monday, 17 April, news broke on FlyerTalk that ANA Business Class fares from Jakarta to the USA were pricing at around US$300 round-trip, provided you ticketed them via the ANA Vietnam website.

This turned out to be the resultย of a currency conversion blunder, leading to tickets selling for less than 20 times their face value.ย 

Source: Bloomberg

ANA was slow to react, and the fares remained available all the way till midnight in Jakarta.ย The airlineย eventually disabled the ticketing function via its Vietnam website, with customers redirected to the Japanese website to make bookings in Japanese Yen.

But there’s more.

One complication with mistake fares is that they tend to be route-specific. In this case, passengers would have to originate and terminate their journeys in Jakarta, which though relatively close to Singapore, is a hassle nonetheless. For example, there would be additional costs arising from repositioning flights, and potentially another day’s leave or hotel stay required.

But on Tuesday, 18 April, ANA’s website began allowing ticketed passengers to change their departure and/or arriving city to Singapore (or other cities), while paying a small top-up or, inexplicably, getting refunds of various amounts.

Example of a higher-than-face-value refund arising from a date change | Screenshot: Simon Ramsey

In some cases the refund could be more thanย the cost of the ticket (whether said refunds will actually process is a completely separate matter)!

What’s happening now?

It’s complicated.

ANA remained silent in the immediate aftermath, but on Wednesday 19 April, an article by Bloombergย quoted an ANA spokesperson saying the mistake fares would be honoured:

ANA has said it will honor the tickets for those people who saw the mistake and jumped on its website quickly to book and pay (the glitch was circulating widely on some social media platforms) but those who only reserved the tickets will have to pay a โ€œjust price,โ€ according to an airline spokesperson Wednesday.

-Bloomberg

However, four hours later, Danny Lee (the Bloomberg correspondent who co-authored the original story) reported that ANA subsequently clarified its position. The airline now said that a final decision would only be made by the end of April, and that passengers holding such tickets could fly before a decision was made.

(By the way, there are some very petulant online comments criticising Danny Lee for the initial report, which is beyond ridiculous. I believe he’s one of the most reliable reporters in the business, and it’s hardly his fault that ANA’s spokesperson provided incorrect information. If you want to have a temper tantrum, blame the ANA spokesperson)

In other words: limbo. If you’re flying out before end-April, I think you should be quite safe (though there’s unverified reports online of people being denied boarding).ย For journeys from May onwards, que sera sera.

What am I doing?

ANA B787-9 Business Class

Some people believe that booking error fares is unethical, akin to swapping price tags in a supermarket, or picking up someone’s wallet and keeping it.ย 

Even by the standards of online discourse, that is a remarkably poor analogy. In the case of the supermarket, you’re not the one who did the swapping, and in the case of the wallet, the owner ultimately has the final say as to whether they take it back.

I personally think there’s nothing wrong with buying a fare you know to be a mistake, providedย you’re prepared from the get go to accept whatever decision the airline finally makes.

What I do think is unethical is whining about “bait and switch”, or threatening legal action if things don’t go your way. I mean, come on, it’s just plain disingenuous to pretend you’re a genuine customer hoodwinked by a dastardly airline who’s now pulling the rug.

So I do have some skin in the game, having booked a single return Business Class ticket from Jakarta-Tokyo-San Francisco ticket for S$630, then changing it to Singapore-Tokyo-Los Angeles for a further S$66. My travel dates are in January 2024.

While no one knows for sure what kind of discussions are taking place at ANA headquarters, at this point I feel it’s likely that the fares won’t be honoured beyond April.ย 

I know there’s precedents for airlines honouring error fares, but this particular one has hit ANA where it hurts: premium cabins between Asia and the USA. Every ticket sold at the wrong price means substantial lost revenue for the carrier, especially on routes like Singapore to Tokyo or Tokyo to New York where premium cabin loads are usually very high.

Of course, there are many different permutations of how this can turn out:

  • ANA may decide to cancel all tickets where the origin/destination was changed, and honour the rest
  • ANA may decide to cancel all tickets where the refund arising from a change exceeds the original fare, and honour the rest
  • ANA may decide to downgrade all tickets to Economy in a “take-it-or-leave-it” offer, refunding anyone who chooses to leave it
  • ANA may operate a special A380 flight just for individuals who booked these tickets, before landing the plane on an uncharted island and shooting a new season of Battle Royale

If ANA decides to cancel your ticket, rest assured that you’ll of course get a refund, though you may be slightly out of pocket due to foreign currency transaction fees and fluctuations on your credit card.ย 

And by the way, whatever decision ANA makes I’m sure it’ll be legally airtight, so all this talk of legal remedies and what not just smacks of entitlement.

Frankly, there’s little point getting excited right now. All we can do is sit and wait, and avoid making any kind of non-refundable plans until there’s more clarity.

Conclusion

ANA THE SUITE New First Class

If you bought one of ANA’s mistake fares, there’s nothing to do now but wait for ANA to come to a final decision on whether they honour it.

I’ve done my share of mistake fares over the years: Qatar Airways to Philadelphia in 2017, Cathay Pacific to San Francisco in 2019, Gulf Air to Bahrain in 2022, so trust me when I say the feelings you’re encountering now are perfectly normal.ย There will be excitement, there will be anxiety, there will be denial, there will be elation/disappointment/anger.ย And for those who don’t have skin in the game, there will be popcorn.

Just another day at the office in the miles and points game!

Aaron Wong
Aaron Wong
Aaron founded The Milelion to help people travel better for less and impress chiobu. He was 50% successful.

Similar Articles

Comments

21 COMMENTS

Subscribe
Notify of
guest

21 Comments
Oldest
Newest
Inline Feedbacks
View all comments
Jon

“And for those who donโ€™t have skin in the game, there will be popcorn.”

No popcorn for me, feeling FOMO about it.

Lifshitz

I wonder what would have happened if it was a CGK-HND-NYC flight ticketed on a european website, or a flight to an EU destination. I don’t think it would that legally watertight to change after a week…

The Mandalorian

โ€œANA may operate a special A380 flight just for individuals who booked these tickets, before landing the plane on an uncharted island and shooting a new season of Battle Royale.โ€

This is the way.

Panini

This is the way

Dita Leny Rafiyah

that sentence make me laugh inside my heart. probably it’s a Japanese-style Squid game.

The Armorer

This is the way

Anon

Classic case of unilateral mistake. If the contracts were governed by Singapore law, I have little doubt that they would be void under the eyes of the law. Example see:

[summary of case in high court] https://eoasis.rajahtann.com/eoasis/lu/pdf/E-commerce-Contract.pdf

[full case in court of appeal] https://www.elitigation.sg/gdviewer/s/2005_SGCA_2

James

Yes agreed to unilateral mistake but acceptance of offer took place I believe when spokesperson says they will honor.

Anon

Perhaps. But I doubt an off-the-cuff response by the alleged spokesperson to a journalist would constitute acceptance of all the โ€œoffersโ€ by the airline customers at large. It is also unclear whether the spokesperson has such agency/authority to make such a blanket acceptance on behalf of ANA.

James

Whatever it was, the system screwed up. Incompetence of a system that did not recognize the issue early enough as well as escalation issues of a hierarchical management system gone wrong.

CXWINS

The decision to honor the ticket or not is not a significant issue, as people were aware that the mistake fare came with certain limitations. However, the fact that it took two weeks to come to a resolution speaks volumes.Regardless of what decision ANA ultimately makes regarding the ticket, the delay in reaching a resolution could have a negative impact on their image.

Mart

I was not able to change my destination or the point of arrival on return right after booking on Monday or on Tuesday. Where was the option? Did i have to be an ANA member?

honor it

In some countries, it is illegal to not put a price tag for any consumer product AND the product must NOT be sold at a price HIGHER than the price stated.

James

Simple law of contract. They could have void the the original offer due to unilateral mistake however when the spokesperson says they will honor, its acceptance. They should have voided straight away.

James

And just so you know how much airlines have been fleecing customers – Ana recorded a profit of 738 million usd.

Hsuen

Any lawyers we can contact???

wayne

nope, it is unethical, simple as that. its shameless and not classy, plus its 2023.

but its personal. at least i know i will pay full price for a loaf of bread even if it scans at $0.10.

Tommy

I’m not sure I would have changed my start city to Singapore. It’s not worth the risk

BAC
intransitmostlikely
annon

I just received a notification that ANA charged to my credit card again for the error fare, and there’s no way to contact ANA to know why