Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
  • VOICESOpen Menu
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
  • RESEARCHOpen Menu
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARS & FORUMSOpen Menu
    • BTN News Desk: July 16
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
Business Travel News
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
    Managed Travel GuidesNEW! BTN ElevateNEW! BTN IntelligenceNEW! BTN Next
    Subscribe to NewslettersBTN DailyBTN EuropeBTN Elevate for SMEsBTN SustainabilityBTN Next for Tech & DistributionBTN IntelligenceBTN Weekend
  • VOICES
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
    Amid $1B Tech Revamp, Marriott Readies Next Steps in DistributionAmid $1B Tech Revamp, Marriott Readies Next Steps in Distribution
    ATPCO's New CEO Outlines Niche in AI Powered EcosystemsATPCO's New CEO Outlines Niche in AI Powered Ecosystems
    3Sixty Eyes Corporate Travel Market as Project Work Drives Extended-Stay Demand3Sixty Eyes Corporate Travel Market as Project Work Drives Ext.-Stay Demand
  • RESEARCH
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• Travel Payment Innovation 2026• BTN Intelligence's 2026 SME Report• BTN Intelligence's 2026 AI Report• Premium Travel 2026• Travel Risk Outlook 2026• BTN Intelligence's 2025 Traveler Purpose & Productivity Report• BTN Intelligence's 2025 Business Travel Sustainability Report• BTN Intelligence's 2025 State of the Industry Report• Ecosystem Play: 2024 Tech Report• NDC Ecosystem Update 2024• Meetings Strategy Report
  • WEBINARS & FORUMS
    • BTN News Desk: July 16
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
    Rethinking Strategic Meetings Management in the Agentic AI Era

    Thurs., July 23 at  10am PDT / 1pm EDT

    Sponsored by:Groupize

     

    Your Next TMC RFP: How to Separate Real AI from Marketing Hype

    Wed., July 22 at  10am PDT / 1pm EDT

    Sponsored by: Gant Travel Management

     

    Scaling Rides and Meals Without Losing Control

    Tues., June 23 at  10am PDT / 1pm EDT

    Sponsored by: Uber for Business

  • EVENTS
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
    42nd Annual Travel Manager of the Year Awards & Reception

    InterContinental Chicago - August 5, 2026

    11th Annual Entertainment Sports & Media Travel Summit Los Angeles

    Regent Santa Monica Beach - October 1, 2026

    Business Travel Show America

    Javits Center, New York City - October 14-15, 2026

    15th Annual Business Travel Hall of Fame

    The Plaza, NYC - December 2, 2026

  • RESOURCES
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
    BTN's Business Travel Management Tool Box

    The BTN Group has a variety of resources for corporate travel managers to build and refine their program strategies. Not sure where to begin? Check out this starter pack.

    BTN CTI Calculator - New Q1 2026 Data Added

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Lawsuits Challenge Carriers' Bag-Fee Responsibility

By Jay Boehmer / December 06, 2010 / Contact Reporter
Business Travel News on X

When Hayley Hickcox-Huffman arrived in San Luis Obispo, Calif., on a US Airways flight last year, she made it on time, but her bag did not. Having paid $15 to check that piece of luggage, she felt entitled to a refund. After all, if her bag hadn't arrived with her flight, what exactly had she paid for?

Since then, lawyers and other passengers have challenged airlines in the courts on that very question, asserting a right to refunds when baggage fees are levied but the luggage doesn't arrive with the passenger. Airlines, meanwhile, are fighting back, claiming they never promise on-time baggage delivery, nor do they guarantee in their contracts of carriage refunds in instances of delayed luggage.

Hickcox-Huffman last month sued US Airways in California for breach of contract, unjust enrichment and breach of the covenant of good faith and fair dealing. The plaintiff argued: "When defendant began charging fees for baggage, it incurred the obligation to handle such baggage with care and ensure the timely delivery of the baggage to its passengers on arrival at their destination. Each time the defendant delays, damages or loses baggage, but fails to refund the baggage fee to the affected passenger, it breaches this obligation." Hickcox-Huffman and her lawyers are seeking class-action status against US Airways, which at press time had not filed a response with the court.

That suit is hardly the only legal action on the matter. One such suit against American Airlines was filed in July in Seattle. "American Airlines has chosen to charge a fee to deliver a customer's bag to a certain destination and, like most other airlines, has reaped significant profits from this practice," according to a statement by attorney David Ongaro of San Francisco-based law firm Ongaro Burtt & Louderback LLP. "With that business decision, however, comes the obligation to either perform the service, as promised, or return the fee. It's bad enough that most airlines now charge fees to transport baggage, but [it's] inexplicable for them to pocket the money when they fail to deliver this basic service." The law firm has worked to file "a number of baggage claim class-action lawsuits based on a simple theory that airlines charged passengers for a service but failed to deliver the bags as promised," according to a statement.

While they tap into traveler frustration regarding the decoupling of airline services from the base fare, such lawsuits stand on flimsy legal ground, said lawyer John Caldwell, president of travel management consultancy Caldwell Associates. "This is a certain amount of noise, and I think these cases probably aren't going to make it," he said. "If the first one or two get thrown out, I think that's the end of it."

American is seeking to dismiss the Seattle-area case, arguing, among other things, that there is no obligation in its contract of carriage to deliver bags on time. In court documents, AA wrote that those seeking obligatory refunds on delayed checked bags are proposing "legal rules that do not now exist." The carrier also argued that the Airline Deregulation Act supersedes claims made under state law. Absent an earlier resolution, plaintiffs expect the discovery phase to take a year before the case would be "ready for trial by December 2011," according to a court document.

While the U.S. Department of Transportation in the past two years has implemented several new air passenger protections, it has yet to address this particular issue. Caldwell viewed federal intervention as a more feasible avenue than the legal process, noting the plaintiff would "be better off going to DOT and trying to get a rule that would allow for compensation on this, but I don't think they'd want to do that, because that would be an administrative ruling and they'd get no money."

American, Continental Airlines, Delta Air Lines, United Airlines and US Airways all note that passengers could be eligible for a refund if they paid to check luggage on a flight that is canceled. For lost luggage, meanwhile, domestic airlines are bound by law to reimburse passengers up to $3,300, depending on circumstances. However, no legacy airline contract of carriage explicitly offers a refund for baggage that is merely delayed. A Continental spokesperson said, "Since the checked-bag fee is a transportation charge, we don't offer a refund if a bag is delayed."

Still, customers are free to file a refund request, and several airlines said they evaluate those on a case-by-case basis. All of the largest U.S. airlines have some mechanism, whether through their websites or via U.S. mail, through which travelers could request such refunds.

An AA spokesperson said, "The way we generally explain that is to say that checked-bag charges are not reimbursed just because bags are delayed. However, if the delay or loss is significant enough to file a loss claim for other items that results in any payment or reimbursement, then customers are also welcome to include their checked-bag charge as an element of that claim request." Though US Airways' baggage policy claims that "all bag fees are nonrefundable, per person and each way," the carrier noted on its website that "we have processes in place to compensate you on a case-by-case basis in the event of a service failure."

Despite the litigation this year, carriers pointed to the infrequent nature of such infractions, claiming less than 1 percent of bags fall into DOT's category of "mishandled," which includes lost, damaged or delayed luggage. AA similarly noted that 99.4 percent of bags arrive on the same aircraft as the passenger. When they don't, according to a spokesperson, half of the wayward luggage arrives "at the correct destination on the next flight in."

The rate of mishandled baggage has decreased. The 18 largest U.S. airlines on average mishandled 3.59 bags per 1,000 passengers during the first nine months of 2010, down from 4.02 bags in the same period in 2009, according to DOT's most recent Air Travel Consumer Report. Of the six largest U.S. carriers, Continental posted the best performance, mishandling 2.55 bags per 1,000 passengers, while AA posted the worst performance among legacy airlines, mishandling nearly four bags per 1,000 passengers. US Airways, Southwest Airlines, Delta and United each posted better than average baggage-handling performance, but many of the regional carriers with which they contract—including AA's American Eagle (7.26 bags mishandled per 1,000 passengers) and Delta's Comair (5.4 per 1,000)—performed below average.

Source: Management.travel

More

Sponsored Content

VIEW ALL
Condor: 70 Years of Leading with Passion in the Skies
Condor: 70 Years of Leading with Passion in the SkiesBy Condor Airlines
BCD's More Open Approach to Corporate Travel
BCD's More Open Approach to Corporate TravelBy BCD Travel
Escape the noise: Practical tips for AI pilots in travel programs
Escape the noise: Practical tips for AI pilots in travel programsBy FCM

Subscribe to Free

BTN Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. Amid $1B Tech Revamp, Marriott Readies Next Steps in Distribution
  2. Concur's Sultan: Experience Advances with Rail Content, Key Markets
  3. CTM Delays Resolution to Overcharging Crisis
  4. Acai Travel Wins BTS Europe Innovation Faceoff
  5. GBTA Study: More Buyers Plan to Use AI for Hotel RFPs
  1. Spirit Aims to Transfer Two Atlanta Gates to Delta
  2. New Airline Routes: July 2026 Updates
  3. Clarasight Leans into Industry Community Building with CTAN
  4. Amid $1B Tech Revamp, Marriott Readies Next Steps in Distribution
  5. DOT: May U.S. Air Cancellation Rate Declines, Reversing Trend
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Media Kit
  • Subscribe to Newsletters
  • Advertise
  • Editorial Guidelines
  • BTN Europe
  • Purchase Reprints
  • Privacy Policy
  • Terms & Conditions
  • Do Not Sell or Share My Data
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
BTNGroup
Business Travel NewsBusiness Travel News EuropeTravel ProcurementThe BeatBusiness Travel Show
Northstar Travel Group
Copyright ©2026 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement