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Airline sues passenger, but maybe it has a point.

When I first read the headline, I shook my head in frustration at the airline for suing a passenger, but then I started a deeper dive and I think lots of fingers need to point in many directions.
https://www.fodors.com/news/news/air-canada-faces-backlash-for-suing-passenger-over-delayed-luggage-compensation

In summary: A couple flew from Toronto to Vancouver. Luggage didn’t arrive and Air Canada told them to buy a “reasonable amount of necessities”. The suitcase was found and delivered the next day. In the meantime, the couple submitted receipts for $3435 for replacement items including a monogrammed suitcase worth $1130 which was bought after their suitcase arrived. Air Canada offered $250. The couple refused and submitted a complaint to the Canadian Transport Agency (I think the equivalent American agency is the FAA) which ordered Air Canada to pay them $2000. Air Canada is now suing the couple to get the money back.

I’m no lawyer but the following from the Canada Transport Agency in reference to lost luggage seems vague and I can understand why both passengers and airlines are frustrated.

“The airline must compensate you up to approximately $2780 for items you may need until your baggage is returned to you. The airline does not have to compensate you if it took all reasonable measures to avoid the issue or if it was impossible for them to take these measures.

But that is for international flights, this was domestic and the CTA guidelines are that the airline makes the rules in that situation and in Air Canada’s case it appears there are no rules for lost baggage on a domestic flight except a refund of the baggage fess and they’ll “try” and get the bag back to you. I’ll admit I didn’t read all of Air Canada’s tariff which is over 50 pages long.

If I had simply read the headline, I would have been shaking my fist at my screen and Air Canada. But after reading the article and giving it some thought it seems to me that the passengers abused the system and the CTA is a weak bureaucratic mess resulting in push-back from passengers and airlines regarding regulations. Thoughts?

Posted by
12242 posts

Think I have to side with the airline on this one.

Cannot imagine how I would fit $2000+(US) into a single suitcase for a weekend trip.

Hard to image how their 'shopping spree' can be seen as "reasonable and necessary"

Posted by
9167 posts

I'd like to see the exact wording of what they sent the couple. I thought reasonable was supposed to be enough to tide them over, until the airline had a chance to fins their bag. And I thought there was a dollar limit, and/or an expectation of itemization and documentation of what was lost. Without knowing more, it seems that clearly the stuff bought after their bag was returned was wrong. It shouldn't be punitive.

Allan. please keep us updated on how this turns out.

Posted by
8857 posts

The rules for lost baggage are laid down in the Montreal Convention (whether a ten minute domestic hop or an ultra long haul flight).

The amount of compensation is limited to 1288 Special Drawing Rights (an IMF currency). Currently 1 SDR = C$1.90.

That allows for reasonable compensation up to the limit. Reasonable depends on the nature of the trip (is it a beach vacation, a funeral or a business conference for instance).
But for a 24 hour delay that would normally be cosmetics and one change of clothing. As clothing can be worn more than once the usual payment would be that 50% of the cost of the clothes is deemed to be reasonable. A monogramed suitcase is taking the proverbial.

Under the Montreal Convention a claim should be submitted within 3 weeks with all proofs of purchase. Without knowing the exact circumstances a payment of C$250 (£130, US$160) feels reasonable.
If the case is lost or damaged the above limit is still adhered to (case and contents), pro rated to the original cost of the lost case and it's age. Typically for a case that had originally cost $1130 a fair and reasonable offer under Montreal would be 10 to 30%- so $110 to $330.
My gut instinct is that Air Canada are substantially in the right here.
I would be surprised if CTA rules over ride Montreal.

Posted by
426 posts

@ Allan

Any more concise identification on the passengers trying this scam. Maybe from Palm Beach Florida?

Regards Ron

Addendum

Allan, take solace that, if necessary, this will be adjudicated by a Canadian KB where every judge I know is appointed solely on merit and not political alliance. The airline is onto a winner. Can it collect the money?

Posted by
115 posts

I am not surprised in the slightest that Air Canada lost their luggage!

Posted by
4160 posts

I was shocked a few years ago when I returned home from an international trip and my luggage didn’t show up for 4-5 days. I needed to buy a few things because we were only home for 24 hours and then needed to drive to an overnight trip. I bought mostly toiletries and cosmetics, totaling less than $100 and Allianz and AF denied my claim because they said it only applied to flying to a destination not returning home where I should be able to function without my luggage.

Posted by
2448 posts

Does the CTA ruling mean, in a similar circumstance , I can replace my Rick Steves roller bag with a Louis Vuitton roller bag?

Posted by
4827 posts

The rules for lost baggage are laid down in the Montreal Convention
(whether a ten minute domestic hop or an ultra long haul flight).

Maybe it's different in the UK, but I looked it up and in Canada the Montreal Convention is not applicable if it's not connected in any way to an international trip.

Posted by
376 posts

interesting. i had a similar experience flying on qatar air to india. bag was misplaced and i had to buy a few items including a power supply for my laptop. cost about 130 usd. they found the bag, delivered it a few days later, and offered $50 as compensation. i refused to accept and started a claims process. many forms, emails later they did cough up the $130. lesson learned: don't accept the standard compensation especially if the airline operates/offers flights to and from the USA. The DOT has rules that specifically state that a passenger is not obliged to accept the standard compensation. i copied/pasted/linked the rules and qatar changed its tune.

Posted by
16770 posts

Allan is right. In this case, the Montreal Convention does not apply. It is only for international flights and the flight here is domestic.

However, since the CTA ordered Air Canada to pay $2000 and not the full $3435 claim, it seems they probably thought the bag request was exorbitant..

Posted by
4827 posts

Cannot imagine how I would fit $2000+(US) into a single suitcase for a
weekend trip.

I asked my wife that and she started listing off things like makeup, makeup remover, etc. and it quickly went to $500. 2 pairs of shoes is $400. So running around naked and without makeup is already $900 lost.

She'd be more concerned about what the airline and insurance may not compensate. Due to her height (lack of ) and figure, most clothes have to be altered after purchase. Is that covered?

Posted by
2136 posts

When I started adding up what I had packed in a lost suitcase I was pretty surprised, but it included two suits etc ( we were bound for a wedding, Columbus to Miami) for a 10 day trip. The insurance guy demanded receipts…I asked him if he could provide receipts for the pants, underwear, shirt shoes etc he was wearing while speaking to me. We settled. But buying an $1130 monogramed suitcase? I try to avoid the word scam, but these guys do bring it to mind. When Air France misplaced my luggage for a few days many years later they offered us about $100 apiece to purchase necessities. But I hate clothes shopping and had no intention of spending a minute of my time in Paris looking for underwear and socks. We managed. But that’s us.