WHEN THE SEATING ON A B737 FLT WAS OVERSOLD; THE EXTRA PAX WAS ACCOMMODATED BY A FLT ATTENDANT AND STATION AGENT PLACING A 2 YR OLD CHILD IN A PARENT'S LAP. A RELATIVE OF THE CHILD AND PARENT COMPLAINED THAT THE FLT ATTENDANT AND THE AGENT WERE CHANGING THE RULES TO SUIT THEIR PURPOSE AND THREATENED TO TAKE THE ISSUE TO ENFORCEMENT LEVELS.

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I WAS ON A FLT FROM KAHULUI; MAUI; TO HONOLULU; OAHU. AS LEAD FLT ATTENDANT; I WAS TRYING TO GET PAX SEATED ON AN OVERBOOKED FLT. I FOUND THAT THERE WERE ONLY 2 SEATS AVAILABLE; WITH 3 PAX LEFT STANDING IN THE AISLE. I HAD EARLIER NOTICED WHILE GETTING MY PAX COUNT; THAT A CHILD OCCUPYING A SEAT LOOKED RATHER SMALL TO BE 2 YRS OF AGE. I ASKED THE MOTHER IF HER CHILD HAD A TICKET AND SHE INFORMED ME THAT SHE HAD CALLED THE AIRLINE TO SEE IF HER 2 YR OLD DAUGHTER NEEDED A SEAT. THE AIRLINE HAD SAID; 'YES' AND SHE HAD PURCHASED A TICKET FOR HER. I THEN INFORMED THE MOTHER THAT ALTHOUGH THE AIRLINE HAD TOLD HER TO PURCHASE A TICKET; I HAD OBSERVED THAT THE CHILD WAS TOO SMALL FOR THE SEAT BELT TO WORK PROPERLY. I SUGGESTED TO HER THAT IT WOULD PROBABLY BE SAFER IF SHE HELD THE CHILD ON HER LAP DURING TKOF AND LNDG. I THEN TOLD HER THAT DURING THE FLT; THAT IT WOULD BE FINE TO PUT THE CHILD IN THE SEAT. SEEING THE BOARDING AGENT AT THE FRONT OF THE PLANE; I EXPLAINED OUR SIT OF OVERBOARDING OF PAX. 2 SEATS AVAILABLE WITH 3 PAX STANDING. THE AGENT NOTICED THE CHILD; AND HAD ASKED ME IF SAID CHILD HAD A TICKET. I INFORMED AGENT THAT MOTHER HAD PURCHASED A TICKET FOR HER CHILD UNDER ADVISEMENT FROM THE AIRLINE. AGENT THEN DOUBLE-CHKED TICKETS TO CONFIRM MOTHER'S STORY. AT THIS POINT; I WAS CALLED BY THE COCKPIT AND LEFT THE SIT TO THE AGENT. I WENT TO THE FLT DECK TO EXPLAIN OUR DELAY AND BOARDING TO THE CAPT. UPON RETURNING TO THE CABIN I NOTICED THE AGENT TALKING WITH THE MOTHER AND A FEW MINS LATER; AGENT INFORMED ME THAT MOTHER HAD AGREED TO LAP HER CHILD; AND HAD ACCEPTED A REFUND FOR HER DAUGHTER'S PURCHASED TICKET. AFTER CLOSING THE FORWARD PAX DOOR; SECOND FLT ATTENDANT INFORMED ME THAT THE GRANDMOTHER WAS STILL VERY UPSET OVER THE HANDLING OF THE ENTIRE SIT. AFTER GIVING THE REQUIRED SAFETY BRIEFING; I WENT TO SPEAK TO THE GRANDMOTHER TO APOLOGIZE FOR ANY INCONVENIENCE AND MISUNDERSTANDINGS THAT WERE BROUGHT TO HER; AND HER FAMILY TRAVELING WITH US. I HAD INFORMED HER THAT WHILE ON THE GND THE BOARDING AGENT IS IN CHARGE OF THE PAX; AND ANY PROBS WITH SEATING. SHE THEN QUESTIONED ME ON HOW COULD AN AIRLINE CHANGE GUIDELINES AND POLICIES TO ACCOMMODATE OVERBOARDED PAX TO MEET OUR SCHEDULED DEP. I AGAIN APOLOGIZED; AND OFFERED MY ASSISTANCE IN ANY WAY TO RECTIFY THIS INCONVENIENCE. SHE DECLINED MY OFFER; AFTER STATING OBSCENITIES AND DEROGATORY STATEMENTS TOWARD ME; AND SAID SHE WOULD PURSUE THE MATTER WITH THE COMPANY; THE FAA; AND THE DOT. SUPPLEMENTAL INFO FROM ACN 332195: I OBSERVED FIRST FLT ATTENDANT AND AGENT SPEAKING TO THE FAMILY WITH THE TICKETED CHILD. I ALSO OBSERVED CHILD BEING PICKED UP BY PARENT AND PLACED ON HER LAP THEN PUT BACK DOWN ON THE SEAT. FINALLY CHILD WAS PICKED UP AGAIN AND OVERBOARDED PAX (GENTLEMAN) TOOK THE SEAT LEFT VACANT BY THE CHILD. SOME PAPERWORK WAS GIVEN TO PARENT WITH THE CHILD. LATER LEARNED IT WAS FOR REFUND OF CHILD'S TICKET. I ALSO LATER LEARNED THAT CHILD WAS A LITTLE OLDER THAN 2 YRS OF AGE AND BY THAT TIME; DOOR WAS CLOSED AND WE WERE PREPARING FOR DEP. SUPPLEMENTAL INFO FROM ACN 332508: I WAS THE THIRD FLT ATTENDANT. I OBSERVED THE AGENT AND FIRST FLT ATTENDANT SPEAKING WITH PAX IN ROW X. WHILE TAXIING AND AFTER DOING MY DEMO I ASKED THE FIRST FLT ATTENDANT IF THERE WAS A PROB; HE SAID THE PAX WANTED TO KNOW WHY THE CHILD DIDN'T NEED A TICKET; IF THE COUNTER SAID SHE DID. I THEN ASKED 'WHY; IS THE CHILD 2?' HE REPLIED; 'I DON'T KNOW.' I INFORMED THE FIRST FLT ATTENDANT THAT IF THE CHILD WAS 2 SHE REQUIRED A TICKET AND SEAT.