I received a new response from British Airways today in my "saga". The gist of this response I think is:

1. It's a silly policy, but it's *our* policy
2. I understand you spend tens of thousands of euros with us annually
3. We're tired of you doing so, please give that money to another carrier

Below is the actual response. Simply put when I book a rewards flight with miles my family does not benefit. Frankly I'm astounded. BA is deciding to lose thousands of euros for a 100 euro service fee. And yet airlines moan all the time how they lose money. Perhaps it's poor customer service like this for their best customers?

Dear Mr Steckler Thank you for coming back to us. I am sorry that you are unhappy with our response, which was well reflecting your concern about your family not being able to select seats. Our seating policy is in place since 2009 but you may not have realized it as as a Gold Member you were still entitled to a free seat selection for your personal travels. I understand you remain unhappy and I will certainly pass on your comments to our Management Team to let them know your impressions. Thank you again for contacting us and for giving me an opportunity to look at your case again. I hope our decision will not deter you from flying with us in the future. Best regards [name deleted] British Airways Customer Relations Your case reference is:[case reference deleted]