Friday, October 16, 2009

Restraints on airlines’ anarchical behavior

On October 9, 2009 the US Department of Transportation (DOT) issued a guidance letter asking airlines to modify and regulate their policy for reimbursement for lost, damaged and delayed baggage. The objective is to eliminate airlines’ arbitrary limits on reimbursements and basically their attitude to pay “when they feel like it.” The DOT does not give any limits in their notice, they state an airline “shall not limit its liability for provable direct or consequential damages.” In essence, the DOT opinions the airlines should pay for all expenses which are the result of the baggage loss, damage or delay (up to $3,300 per passenger). The airlines have 90 days from the date of the notice to amend their policies.

Source: by eTN staff writer, October 13 (published October 14)

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