DOT Raising Lost Luggage Compensation

The U.S. Department of Transportation today issued a final rule that raises the minimum amount airlines must compensate for lost baggage to $3,300 from $3,000. DOT said the new rate takes into account consumer price inflation since it last raised the limit in January 2007.

DOT in the filing noted that "although this final rule will become effective in 60 days, in order to avoid imposing an undue burden, the Department will defer enforcement of the notice provision in the rule as it pertains to printed notices about the new limit for a reasonable time period to allow carriers to replace or update their current paper ticket stock and ticket jackets or inserts."

The filing notes that instances of mishandled bags have "been trending downward throughout this year, possibly as a result of fees for checked bags imposed by many airlines beginning this year."

According to figures in a Bureau of Transportation Statistics report released this month, the number of mishandled bags among the 19 largest domestic carriers declined by more than 89,000 from September 2007 to September 2008, from 5.36 instances per 1,000 passengers to 3.86.

DOT said the increased liability likely would not have an adverse economic impact on many carriers as "most of the instances of mishandled baggage represented in the reports to DOT do not result in a claim in an amount that is affected by the liability limit in this rule," the filing said. "In addition, this revision affects only flight segments operated with large aircraft and other flight segments appearing on the same ticket as a large-aircraft segment."