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DOT Steps Up Enforcement on Airline Compensation for Lost or Delayed Luggage

Airlines & Airports, Luggage & Packing — on October 16, 2009 1:05 pm

Empty baggage claimThe government is cracking down on how airlines compensate passengers for lost or damaged baggage.

The Department of Transportation (DOT) recently reprimanded Spirit Airlines to the tune of $375,000 for violating federal rules regarding baggage-reimbursement requirements.

The DOT has now issued an ultimatum to other airlines with similar policies—shape up in 90 days, or face the consequences.

Now that the DOT is getting serious about lost luggage, what kind of changes can we expect to see from airlines?

As it stands now, many airlines refuse to cover expenses within the first 24 hours after they misplace a bag. So if you need to immediately replace toiletries or clothes for a meeting, don’t expect the airlines to foot the bill.

They also only pay for these incidental costs on the outbound leg of your trip. If they lose your bag on your way home, tough luck.

Get more General Luggage and Packing Advice

However, these common airline practices violate DOT rules—and transportation officials are finally doing something about it.

Airport check-in“Travelers should not have to pay for toiletries or other necessities while they wait for baggage misplaced by airlines,” said Transportation Secretary Ray LaHood in a recent statement.

After the 24 hour waiting period, most airlines are also notoriously stingy when it comes to paying passengers a daily stipend for lost baggage-related expenditures. Many airlines will pay $25-$50 a day, with a ceiling of $100-$200, although they do say they consider higher reimbursements on a case-by-case basis.

American Airlines and Southwest claim they have no daily limits, but passengers have to file formal claims and get prior approval from the airlines for all purchases. These often exclude replacing lost electronics, medications and items like sunglasses.

Check out the scale of the lost luggage problem: New Report Estimates Over 40 Million Bags Lost By Airlines Worldwide–Every Year.

Airplane sunsetDOT officials say these parsimonious payout policies won’t pass muster. According to the agency, airlines are liable up to $3,300 per passenger for lost luggage—which includes incidental costs for replacement items.

Travelers have been grumbling about tight-fisted baggage-reimbursement policies for years, but now DOT is actually stepping up to the plate and putting an end to these dodgy arbitrary limits.

The agency has told airlines that they have 90 days to change their policies before they find themselves in the same position as Spirit Airlines.

By Dan Bence for PeterGreenberg.com.

Related Links: Wall Street Journal, Associated Press, Cranky Flier

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  • MARY HENRY

    Allegiant Airlines needs to be investigated. On a xmas trip to Az.my nieces luggage was sent to Florida. We filed a claim at the airport and were the bag would be returned xmas eve. This was on december 22. We were also advised to go buy her clothes and toiletries to hold her. Three days before xmas and we had just gotten off a flight that had set on the tarmack at Sky Harbour when it was to have landed at Mesa Airport.We also waited for 1.5 hrs for them to admit the bag did not arrive with us.We went and bought my niece a pair of jeans, sweatshirt jacket , pajamas, under garments, makeup and toiletries.We spent $346.00 and were reimbursed $186.00. They advised they reviewed our case and decided this was an acceptable compensation. This was 3 days before xmas and i had to put out additional monies due to Allegiants mistake. I do not believe this is fair. I looked for the best deal so I could afford to go to my Daughters for xmas and then still had to pay $186.00. My neice is 21 in college and could not afford this. Any advise would be appreciated

  • Anonymous

    On March 30, 2010 I flew nonstop with Delta from Detroit to Tampa. Again, no luggage! This also happened when I flew with Delta on October, 2008. Then, at least I got my bag back after 2 days. It is now April 7th, 2010 I am back home from my miserable vacation and I still have no baggage. I was offered nothing when I reported my bag missing. I had to use vacation money to clothe myself while in Florida. I can’t get back that time off from work which I used for this nightmare vacation. I understand to get compensation you need receipts for all in your suitcase…C’mon who saves receipts for all their purchases, even if they were recent. Passengers need to demand changes in the handling of lost baggage compensation. The DOT has rules and regulations for those of us flying but none for the airlines that we pay to safely transport our baggage from one destination to another. The United States Postal Service gives us a better guarantee of getting a package from point A to point B and it’s cheaper!!!

  • Kamilla

    AA AIRLINES lost mine and my husband’s luggage in April 2011 and never reimbursed
    us even for the full amount of the first necessity items! they denied
    the claim, giving us 300$ in return, when the value of our belongings was few thousands dollars(this after we filled in all the forms and itemized everything).!! We havent even deposited the check, as we saw it a a direct insult and disrespect to us and to many other passengers ( who i’m sure experienced the same situation). All our repeated multiple request for the airline baggage center , customer service, multiple supervises and even the CEO of the airline were not answered. The only thing we can do now is sue them in court and go to publicity. I have never thought this will even reach this point.”Any further suggestions?