Lost Luggage Limit raised to $3K

Federal Regulation Brief
Feb. 1, 2007

TRANSPORTATION

Today’s Brief Includes (Jan. 24-30):
National Transportation Safety Board (NTSB) - No new regulations this week
Transportation (DOT)


TRANSPORTATION (DOT)

NEWLY PUBLISHED REGULATIONS

OFFICE OF THE SECRETARY (OST)

Economic regulations, domestic baggage liability, minimum limit increase: Domestic Baggage Liability, Federal Register, January 29, 2007, Volume 72, Number 18, Rules and Regulations, page 3942, 14 CFR Part 254, RIN 2105-AD62, Docket OST-2007-27020, Final Rule.
[TEXT]  [PDF]
(This final rule is effective February 28, 2007.)

PURPOSE: Airline carriers limit the amount they will pay for baggage damage and losses per person. This action increases the minimum amount that carriers using large airplanes are allowed to tell passengers they will not pay above. This is an inflation adjustment.

SUMMARY: This action revises the minimum limit on domestic baggage liability for air carriers to reflect inflation since July 2004, the year of the most recent revision to the liability limit. Section 254.6 requires that the Department of Transportation (DOT) periodically revise the limit to reflect changes in the Consumer Price Index. This action adjusts the minimum limit of liability from the current amount of $2,800 to $3,000.

AMENDMENTS: 14 CFR Part 254, Sections 254.4 and 254.5 are revised to read as follows:

Section 254.4 Carrier liability.

On any flight segment using large aircraft, or on any flight segment that is included on the same ticket as another flight segment that uses large aircraft, an air carrier shall not limit its liability for provable direct or consequential damages resulting from the disappearance of, damage to, or delay in delivery of a passenger's personal property, including baggage, in its custody to an amount less than $3,000 for each passenger.


Section 254.5 Notice requirement.

In any flight segment using large aircraft, or on any flight segment that is included on the same ticket as another flight segment that uses large aircraft, an air carrier shall provide to passengers, by conspicuous written material included on or with its ticket, either:
(a) Notice of any monetary limitation on its baggage liability to passengers; or
(b) The following notice: “Federal rules require any limit on an airline's baggage liability to be at least $3,000 per passenger.”