NEW DELHI: A district consumer commission in Delhi has directed American Airlines to pay Rs 3.61 lakh to a Delhi couple after two of their bags were found ripped open and several belongings were missing when they arrived in Toronto from Miami.The commission found that the bags were in the airline’s custody when they arrived ripped open with several articles missing. The order was passed on August 14, 2026.What was the dispute over the damaged and missing baggage?According to the commission order, Indu Jain and Rajeev Prakash Jain travelled from New Delhi to London and then Miami on British Airways in May 2017. On June 2, 2017, they flew from Miami to Toronto on American Airlines flight AA2671. When they reached Toronto, they found that two bags had been badly damaged and torn open. They also found several personal and gift items missing.The couple immediately reported the damage and missing articles to American Airlines at Toronto airport. Their initial claim was for $1,800. They later submitted a list of additional items and eventually put their total claim at $17,461.73.The couple said they had to buy replacement articles during their stay in Toronto and later in London. After returning to India, they exchanged several emails with the airlines seeking reimbursement. They also lodged a claim under their travel insurance policy, but the insurer denied the claim.American Airlines denied any wrongdoing. It said the couple’s claim had increased from $1,800 to $15,430.73 and finally $17,461.73. It also said several receipts did not match the list of missing items and that some items claimed, including jewellery and electronic devices, were not covered under its conditions of carriage.The airline also argued that its responsibility for baggage was limited under the Carriage by Air Act, 1972 and that the couple had not made a special declaration for valuable items. It said the claim was rightly rejected because of differences in the documents submitted by the couple.British Airways, which was the first opposite party, also denied responsibility. It said the Miami-Toronto flight was operated entirely by American Airlines and that the couple’s baggage was handed over to American Airlines at Miami. The insurer too denied the claim based on the terms of the policy.What did the commission say while holding American Airlines responsible?The bench comprising President Divya Jyoti Jaipuriar, along with members Harpreet Kaur Charya and Ashwani Kumar Mehta, noted that the couple had immediately reported the damaged bags and missing articles at Toronto airport. It also found that American Airlines had the bags in its custody during the Miami-Toronto journey and had not produced any proper report showing that it had investigated what happened.“OP No. 2 (American Airlines) has systematically attempted to evade its operational responsibility by shifting blame onto OP No. 1. The record unequivocally demonstrates that the physical custody and handling of the checked baggage on the sector from Miami to Toronto rested entirely with OP No.2. The OP-2 has also not filed any contract/sub-contract of operation with OP-1. The Complainants subsequently revised their Claim while replying to the queries of the OP-2, which we find inappropriate to the extent of purchases made after reaching Toronto on 2-6-2017. The initial declaration made on 02.06.2017 claiming the amount of missing articles/items at $1,800 stands valid, genuine and binding,” the bench noted.The commission said American Airlines had not explained how bags in its custody arrived torn open with items missing. It also rejected the airline’s attempt to rely only on the limits on its responsibility when there were serious concerns about how the bags had been handled.“OP No. 2 has also failed to submit any report of a meaningful internal investigation or produce an official Baggage Search/Survey Report explaining as to how checked baggage in their exclusive custody was delivered ripped wide open with missing items of the complainants. OP No. 2 cannot escape its liability by hiding behind technical pleas when gross negligence in baggage custody is evident on the face of the record,” the commission further added.The commission also considered American Airlines’ argument that its responsibility was limited under the Carriage by Air Act. It referred to the Supreme Court’s ruling in Trans Mediterranean Airways v Universal Exports and said consumers have an additional remedy under the Consumer Protection Act. It said an airline cannot completely avoid responsibility by relying on limits on its liability when there has been a serious failure in handling baggage.“While OP No. 2 has contended about the ceiling of claim filed by the complainants, under the Carriage by Air Act, 1972, the Hon’ble Supreme Court in Trans Mediterranean Airways v. Universal Exports [(2011) 10 SCC 316] has held that the relief sought under the Consumer Protection Act is an additional remedy, and total failure of care resulting in ripped baggage with missing items constitutes an actionable deficiency in service. The airline cannot use liability limitation clauses as a complete shield against gross operational failure,” the bench observed.The commission said the bags were damaged and items were missing while they were in American Airlines’ custody on flight AA2671. It therefore held that American Airlines was responsible for paying the couple, while it found no such failure on the part of British Airways or the insurer.The commission, however, did not accept the couple’s revised claim of $17,461.73 in full. It found that the original claim of USD 1,800 made on June 2, 2017 was valid. It did not accept the later additions, particularly the cost of items bought after the couple reached Toronto.The commission directed American Airlines to pay USD 1,800, calculated at Rs 62 per dollar when the complaint was filed, amounting to Rs 1,11,600, for the damaged bags and missing items mentioned in the original claim. It also ordered 9 percent annual interest on this amount from October 5, 2018, when the complaint was filed, until payment.It also awarded Rs 2 lakh to the couple for the mental stress, harassment, hardship and inconvenience they faced because of the airline’s failure, besides Rs 50,000 towards legal costs.The commission directed American Airlines to comply with the order within 45 days of receiving a copy. If it fails to do so, the entire amount awarded will carry 12 percent annual interest for the period of delay. The complaint against British Airways and the insurer was dismissed without costs.
