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British Airways cancellation Fees

Help. I am new to this - and desperately need help. I booked flights for myself and family (4 in total) with BA to fly return from Gatwick to Georgia for £1149.20 on the 19th March to visit my son's Godparents . At the same time (and unknown to me), my son's godparents booked flights on our behalf with Delta, thinking it would be cheaper for us with the exchange. We now have 8 return flights (that's 16 trans atlantic seats!!!) and BA say they will only refund us £503.20. I understand their T&C's but they can resell the same seats for more than I paid (on 18/10/07) and are retaining a vast profit. We will have to repay our American friends, and can now not afford to go at all unless we get most (if not all) of the money back! Any help or ideas welcome. Delta won't help as the flight is not an internal (within USA) one. I am so depressed I don't know where to turn.:confused:
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