Transportation Department to Monitor Airlines' Lost Baggage Policies

Wednesday, October 21st, 2009

Most major airlines in the United States help customers retrieve their lost baggage by providing reimbursement for the lost materials or providing replacements when a bag is delayed. However, many impose arbitrary limits on the amount that can be reimbursed, which means many travelers don't receive full compensation for the inconvenience and may not be able to purchase all lost items. The U.S. Transportation Department is taking action by requiring airlines to comply with federal rules that require airlines to cover all expenses caused by lost or delayed baggage, or face extensive fines.

Current federal regulations dictate that the airline must reimburse each passenger up to $3,300 on domestic flights, but few airlines reimburse customers anywhere close to this amount. The typical baggage reimbursement claims process requires extensive paperwork and record keeping of all purchases made, and in some cases, can take months to process.

The Transportation Department has stated that airlines are no longer allowed to set an arbitrary limit on reimbursement when they lose baggage under their care, and must provide reimbursement for all related expenses. In the past, certain airlines have only issued reimbursement for outbound trips, and issued checks for items purchased within 24 hours of the flight being delayed. This severely limits the amount of reimbursement that any traveler is eligible for, and few travelers can meet their $3,000+ purchasing limit in such a short period of time.

As the Transportation Department enforces the federal requirements, few airlines will be able to get away with reimbursing for purchases made within a 24-hour time frame, and more customers will be able to get reimbursement for all costs related to their lost or delayed baggage. The Transportation Department has stated it will be monitoring the situation for at least 90 days and will take action with the airlines as needed.