Wednesday, June 15, 2011

dot Presses interim expense for delayed luggage

Many airlines may be violating federal rules on reimbursing travelers for expenses when baggage is lost, delayed or damaged on domestic flights, and the federal government is finally cracking down to help consumers.

The Department of Transportation issued fine against Spirit Airlines for a laundry list of complaints, which also included denial of interim expenses for delayed baggage in violation of DOT statutes.

The Department had received complaints that airlines had in some cases limited the interim expense reimbursement for delayed luggage to passengers traveling only on the outbound portion of roundtrip flights, only after bags had been missing for more than 24 hours, or had limited the amount of interim expense to less than $3,300. In the letter, the DOT advises that carriers must “remain willing to cover all reasonable, actual, and verifiable expenses related to baggage loss, damage, or delay”.
"Travelers should not have to pay for toiletries or other necessities while they wait for baggage misplaced by airlines," Transportation Secretary Ray LaHood said in a statement. "We expect airlines to comply with all of our regulations and will take enforcement action if they do not."

Continental said its interim expense reimbursement to travelers for delayed or lost luggage tops out at $200—$50 a day for four days after a 24-hour waiting period. United says it will pay $50 to $100 a day. AirTran Airways said it had a limit of $25 a day for three days.US Airways Group Inc. has a less-generous limit of $25 a day for up to three days.

Alaska Airlines says it doesn't provide interim expenses to passengers for baggage delayed or lost because of bad weather or air-traffic-control problems. When it does pay, Alaska limits its liability to $25 for the first day a bag is missing, then ups that to $50 a day for the next four days.

Allegiant, a unit of Allegiant Travel Co., says it pays $25 a day for four days, but that only begins 24 hours after a bag has gone missing. Hawaiian, a unit of Hawaiian Holdings Inc., limits payments to $30 a day for three days. JetBlue Airways Corp. says its "standard" payment is $25 per day, but like other airlines it considers higher amounts on a case-by-case basis.

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