I suppose there's a time limit to cancel , leaving them to organise the lift and then have it cancelled night before would be annoying as we all know .
As you say there would be a fuel charge they didn't use so maybe half payment to cover staff might have been the way forward .
Legally it will have the T&C's contract somewhere that says what cancellation at short notice would be .
Regarding the other quote that has nothing to do with it really .