The government plans to fine Delta Air Lines as much as $100,000 for unfair and deceptive practices in its compensation to passengers for delayed baggage.
Delta put lower limits on delayed baggage compensation than it was allowed to, according to the U.S. Department of Transportation.
Specifically at issue was Delta’s distribution of baggage information pamphlets at some airports earlier this year that said Delta would not authorize any expense reimbursement if a passenger’s delayed baggage was expected to reach them within 24 hours. They also said Delta’s liability would be capped at $25 per day after the first 24 hours up to a maximum of $125 per customer when the passenger is away from home.
The pamphlets were given only to people with delayed baggage.
The DOT said Delta is not allowed to limit its liability to less than $3,300 for lost, damaged or delayed baggage. The DOT’s enforcement office had issued a warning to airlines in October 2009 saying that it would pursue enforcement if unlawful reimbursement policies were not corrected.
Delta spokesman Morgan Durrant said the problem was “some airport collateral that had old information on it” that was not destroyed as directed. The brochures have since been destroyed, he said. The company has also contacted about 35 customers who were incorrectly subjected to the old rules, apologized, and given them the correct compensation.
The $100,000 penalty includes $50,000 due within 30 days, while the remaining $50,000 will be due if Delta violates the rules again in the next 12 months.
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