The US Department of Transportation has fined Emirates Airline $100,000 for failing to deliver on compensation for lost, damaged, and delayed baggage.
The DoT said in a statement that the Dubai-based carrier had limited payments to less than consumers were entitled under an international treaty.
“All air passengers, regardless of whether they are taking domestic or international flights, deserve to be compensated fairly for lost, damaged or delayed baggage,” US Transportation Secretary Ray LaHood said.
“We will continue to take enforcement action when necessary to protect airline consumers," he added.
Based on a consumer complaint received by DOT, the Department’s Office of Aviation Enforcement and Proceedings investigated Emirates’ handling of baggage claims for flights to or from the United States and found numerous violations of the Montreal Convention.
In many cases, it said Emirates denied reimbursement for expensive items such as lost electronics, jewellery, and cameras.
In its written responses to passengers, Emirates stated that its contract of carriage limited its liability for such items and incorrectly claimed that its practice complied with the Convention.
The DoT said Emirates’ website also stated that the carrier was not liable for valuables damaged while in the carrier’s custody.
Under the Montreal Convention, an international agreement that sets liability limits for international air transportation, airlines are liable for damages caused by lost, delayed or damaged baggage up to a limit that is the equivalent of approximately $1,820 in US currency unless the carrier has taken all reasonable measures to prevent the damage or it was impossible to take these measures.
The Convention forbids carriers from setting a lower baggage compensation limit for international flights, and does not allow carriers to refuse to provide compensation for jewellery, electronics or other specific types of items.
US aviation statutes require airlines to comply with the Convention.