I did not intend to infer that he was scrounging, apologies if it read that way. I agree the liability is set by statute. It cannot be easy to choose the value given the diversity of flight costs these days. I just find it ironic that a £60 flight can gain you a £400 payment. I do believe it can reflect the trouble caused and also needs to be seen as a deterrent to the airlines to cancel non-profitable legs.
One of my team paid £650 for a flight from LHR to DUB as it was last minute and yet you can get to the Southern Edge of Europe for £120. However the penalty price is fixed to £400 ? Hmmmm.