Airlines to Face Higher Baggage Liability

Your lost baggage is worth a bit more due to a new rule issued by the Department of Transportation. They’ve raised the liability limit from $2800 to $3000, in an effort to keep pace with inflation. The new limit will go into effect Feb. 28, 2007 and it is estimated that the new rule will cost airlines an additional $2.6 million per year in payouts to passengers. —MEGHANN MARCO

Airlines face higher baggage liability [Business Week]


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  1. BillyShears says:

    My own, personal rule: The only thing that gets checked by the airline is clothing. If it’s an expensive item – usually a gadget – it gets taken in my carry-on bag.

    I trust those TSA luggage handlers about as far as I can throw them, so if they bust open my suitcase to “investigate,” well, they better have a 32″ waist.

  2. MeOhMy says:

    “it is estimated that the new rule will cost airlines an additional $2.6 million per year in payouts to passengers”

    Or they could…you know…not lose so much baggage…

  3. bluegus32 says:

    Troy F: that sounds like a disparaging word you commie!

    Just kidding. Actually, it makes one wonder. Why can’t my mistakes be valued monetarily like that? In fact, why can’t we determine the precise value of my mistakes and then let me know at what value I lose my job. It sure would give me a lot more freedom in knowing precisely how sloppy I’m allowed to be.

  4. extra $200/lost bag = 13000 lost bags/year. That’s probably a pretty good ratio, unless your bag is one of the ones that turn up missing…

  5. MeOhMy says:

    Very few people get the maximum because not only do you have to be carrying $3000 you have to be able to prove it.

    Per USA Today, lost an average of 10000 bags PER DAY in 2005. It points out that most were eventually recovered (but how many is that out of 3.65 million bags?), so they didn’t have to pay out much on them. And the way the airport peons treat you when your luggage has lost probably costs them a heck of a lot more.

  6. Magister says:

    The TSA agents are no more trust worthy than the Gorillas jumping on your hard sided American Tourister luggage.

    GED and a fairly clean record is all that is required.

  7. I know there must be a TSA agent somewhere with a face full of womens panties that my friend somehow lost when she received her luggage back.

    Nothing else was missing, just two weeks worth of panties, mostly used.

  8. Crim Law Geek says:

    The comment system seems to be acting up again. i posted a comment earlier today and it still hasn’t show up. I’ll repost it when I’m off NyQuill and remember WTF I said.

  9. Joe Hass says:

    Worth noting: the lost baggage allowance has gone up, but the bumped-flight penalty maximums haven’t changed since (I believe) 1978: it’s still the lower of your fare or $200 for 60-119 minutes late, and the lower of double your fare or $400 for 120 minutes or more.

    To put this in perspective, had these amounts been adjusted for inflation (as the baggage limit is), the caps would be $619 and $1238.