Non Stop Lost Baggage Woes

Anil Gupta from Saratoga Springs, Calif., complained that Air Canada lost his baggage on a non stop flight between Toronto and Delhi, India, on July 2005, ruining his vacation. He says he received no compensation in India and no communication from the airline two months after he filed his lost baggage

claim report. He also alleged that Air Canada frequently lost or misplaced bags on its non stop sector to India, because, it routinely offloaded baggage to save on fuel costs, which, he argued, also undermined security at a time when official policy requires airlines to match passengers with their luggage before departure.

It took Little India several weeks to secure any response from Air Canada, but around when we did, Gupta received a payment for $1,215 and a travel voucher for $500 for his lost luggage, which he declined.

Like most international carriers, Air Canada’s lost baggage liability for flights to India is limited to $20 per kilo for checked baggage. Additionally, consistent with the practice of other airlines, Air Canada does not compensate for lost “money, jewelry, silverware, negotiable papers, securities or other valuables, business documents … computers, pre scri ption drugs, photographic equipment, video equipment, cellular telephones, artistic items, chinaware/ceramics/pottery, electronic and mechanical items, glass, musical instruments and equipment … sporting goods (tennis rackets, scuba gear, fishing rods, surfboards, sporting trophies such as animal antlers and horns).”

Gupta contends that the normal limits on liability did not apply because the misplaced baggage problem was systemic with Air Canada and a result of negligent conduct, not just a result of normal operational factors.
Priscille LeBlanc, Air Canada’s senior director for corporate communication, denied Gupta’s claim that the airline routinely offloaded baggage on its Toronto-Delhi sector: “It is not Air Canada’s standard practice to offload baggage in violation of its contract and security obligations, nor do we do so to save on fuel.” She said while the airline attempts to transport passengers and their baggage together at all times, “this cannot be guaranteed due to various operational reasons.” She insisted, “While we have experienced some departure weight restrictions on our Delhi-Toronto non-stop flights due to enroute weather resulting in the offloading of some passenger bags, the issue could certainly not be termed systemic.”

Jadrino Huot, senior communications adviser for the Canadian Transportation Authority, which unlike the U.S. Department of Transportation, does not maintain statistics on lost or misplaced baggage or require airlines to disclose performance data, said it had received three complaints on lost baggage against Air Canada in 2004 and 2005 on the Toronto-Delhi sector. However, only a very small fraction of incidents result in complaints to the agency.

LeBlanc said that while Air Canada does not provide statistics on lost baggage incidents, “on an annual basis, Air Canada’s incident rate of passengers arriving without their bags is well within the U.S. industry standards,” which is typically between 4 to 6 misplaced bags per 1,000 passengers. She did not have specific statistics for the Toronto Delhi sector.

Air Canada no longer offers non stop flights to Delhi and instead operates flights via Zurich. Pressed whether the decision to drop the non stop flight was influenced by recurring baggage problems, Leblanc admitted: “While the decision to operate via Zurich was based primarily on commercial reasons, operational issues encountered in operating a non-stop service between Toronto and Delhi were also factored in the decision.” She said, “Weight restrictions caused by enroute weather on certain occasions impacted our ability to carry maximum passenger baggage.”

CTA’s Huot explained that as long haul flights require a full load of fuel, weather conditions impose greater weight constraints on these flights than might be true for short haul flights, which can operate with less than a full fuel load.

The Canadian Transportation Authority has perhaps the most elaborate system of handling passenger complaints in the world, designed to provide dissatisfied consumers recourse in an otherwise unregulated industry. The system covers both domestic as well as foreign airlines. The CTA serves as a quasi-judicial, federal agency to deal with complaints involving lost luggage, bumping on flights, etc. The agency reviews and seeks to resolve complaints through mediation, formal hearings, ordering airlines to pay compensation, or fining them, according to Huot. However, CTA’s jurisdiction is limited to flights that originate or terminate in Canada and since Gupta’s travel began in San Fransisco it would not process his complaint, forwarding it instead to the US Department of Transportation.

At press time, Gupta’s complaint remained unresolved because he rejected Air Canada’s offer.

Misplaced baggage is an unavoidable hazard of air travel, although lost baggage is rare. Few countries publish statistics on lost and misplaced baggage by carriers, but in the United States, which does, the incidence typically ranges between 4 to 6 misplaced bags per 1,000 passengers. Almost 98 percent of these misplaced bags are recovered, usually within 48 hours. Fewer than 2 percent of the misplaced bags are actually lost, so the chances of a bag being lost is less than .01 percent.

Airline policy on compensating passengers for delayed baggage is often ad hoc and varies widely. Few airlines publish rules for compensating travelers for delayed baggage, although most offer from $50 to $150 for delays beyond a day, sometimes only if the passenger is irate and insistent. Northwestern Airline, among the few with publicly disclosed rules, offers complimentary amenity items as well as reimbursement of $50 for the first 24 hours and $25 for each additional day’s delay, up to a maximum of $150. Airlines will typically deliver the luggage to you when it is found.

Rules for lost baggage are more uniform. Airline liability for lost baggage is limited to $2,800 for domestic travel within the United States. For international travel, liability is covered by either the Warsaw Convention or the Montreal Convention for countries that have ratified the latter. The more widely used Warsaw Convention limits baggage liability to $20 per kilo, or $640 per bag, which is restricted to 32 kilos. Passengers are usually permitted two bags, so overall liability is limited to $1,280 per passenger. The 1999 Montreal Convention, which has yet to be widely ratified, limits baggage liability to SDR 1,000 ($1,425) per passenger regardless of the number of bags.

Both liabilities are maximum liabilities, however; actual compensation is based on the value of the goods lost and airlines typically refuse liability for many expensive items, such as jewelry, electronic equipment, antiques, etc. Furthermore, airlines typically compensate for depreciated value of the goods. Most airlines publish the limitations of baggage liability on their websites and usually offer options for declaring excess valuation at check-in, typically for around $10 per $1,000, with a cap of $5,000.

To reduce the chance of your baggage being lost, identify the luggage both on the outside and inside, in case the outer identification is lost. It is a good idea to place the itinerary inside each baggage to enable the airline to track you. Avoid late check-ins and tight connections, which are the most common reason bags are misplaced.

If a bag is lost, it is important that you itemize all your goods, because airlines only compensate for the actual loss, not the maximum liability. You might be able to claim additional compensation for your lost luggage from your home owner’s or renter’s insurance policy. Also some credit cards offer free insurance when you buy tickets using the credit card.

The U.S. Department of Transportation (DOT) published statistics on airline performance, including mishandled baggage. For the first three quarters of this year, about 6 mishandled baggage incidents were reported per 1000 passengers, with Airtran holding the best record with 3 incidents per 1000 passengers and Atlantic Southeast the worst record with over 18 incidents per 1000.

Another measure for airline performance is available through complaints lodged by passengers with the DOT. However, only a fraction of incidents aggravate travelers enough to complain to DOT. In 2005, for example, only one in 1,500 passengers who misplaced their bags filed a complaint to DOT about it. Baggage complaints are the second highest category of complaints filed with the department, surpassed only by flight issues, such as delays, bumping and the like. Overall, fewer than 1 in 100,000 passengers file complaints and only a quarter of those involved baggage. Among U.S. airlines, Southwest had the fewest and US Airways the most complaints per passenger in the first three quarters of this year with the DOT. The department does not compile statistics of performance of foreign airlines, but it catalogues complaints against them. Baggage concerns topped the list, accounting for almost 30 percent of all complaints against foreign airlines. Between Jan 1 to Sept 30, 2005, British Airways, followed by Air France topped the list of baggage complaints; Air Canada ranked 7th. Unlike its Canadian counterpart, the DOT does not seek to resolve passenger complaints, but instead simply logs them for statistical and policy purposes.

Untraceable lost luggage frequently ends up at the Unclaimed Baggage Center in Scottsboro, Ala., which covers a city block and stocks millions of lost luggage items. Now you can even shop for these items online at www.unclaimedbaggage.com. No they will not return your lost item if they have it, but you might have a shot to pay to buy it back.

Little India Consumer Rights
350 Fifth Ave Suite 1826
New York, NY 10118