They should have cancelled the event and either donated it to charity or lost the entire amount.There is NO rationale for this kind of expenditure at this economically devasting time.Where were/are their PR people?
Sorry, but I think we have to agree to disagree here. I truly don't think that there was any chance of 'recovering' the deposit so giving it to charity was moot. I stand by my rationale of why it made sense to me and will add these considerations.
Consider the individual attendees. If I was scheduled for this 8 day event, I would have already bought airline tickets, had replacement coverage for my office duties and set other things to be done in my absence knowing I wasn't going to be using my car or other personal items.
Now I get a sudden call to cancel all of this and then I am to do what? It is one thing if the company is being liquidated, then everything is gone, I get my belongings out of the office and look for other employment. In AIG's case, they are still working there, they will logically submit expenses for the lost airline ticket and ALL ASSOCIATED Expenses since they were CAUSED by the COMPANY. Have you ever tried to get a refund for a current airline ticket - so sorry!
As for Public Relations efforts, I have no doubt that they are ongoing but as I said in my previous reply, given the election and media biases, I am thinking that no explanations or justifications were given any credence.