Lost luggage and consumer rights: Airlines' obligations

ON A TRIP FROM THE GALAPAGOS ISLANDS TO LIMA, LATAM AIRLINES LOST MY BACKPACK. I HAD TO SIGN A RELEASE TO SAY I HAD RECEIVED THE COMPENSATION MONEY BEFORE THEY WOULD RELEASE IT BUT WE HAVE NOT RECEIVED ANY PAYMENT. NOW LATAM REFUSES TO CONFIRM WHEN AND WHICH ACCOUNT IT WAS PAID INTO. WHEN THIS HAPPENS ON AN OVERSEAS TRIP WHAT ARE YOUR CONSUMER RIGHTS?

P. BROWN, STANMORE

In regard to airline passengers rights including lost luggage, most airlines are governed by the Montreal Convention of 1999. Article 17 of the convention states: "The carrier is liable for damage sustained in case of destruction or loss of, or of damage to, checked baggage." That's pretty watertight. In Article 22 the convention also stipulates "In the carriage of baggage, the liability of the carrier in the case of destruction, loss, damage or delay is limited to 1,000 Special Drawing Rights for each passenger."

SDR is a fluctuating index based on a basket of international currencies. At the current SDR rate, that entitles you to a maximum compensation of about $1,843, depending on the value of the lost items. In relation to your specific case, LATAM Airlines Group S.A. is incorporated under Chilean law and headquartered in Santiago, Chile. Since Chile is a signatory to the Montreal Convention of 1999 the convention applies to LATAM.

Most major airlines will usually play fair and square in the matter of compensation for damaged or lost luggage. If they don't your recourse under the convention is a legal one, and the airline knows very well you're unlikely to take that path given that the convention also states that "In any action for damages… punitive, exemplary or any other non-compensatory damages shall not be recoverable."

Your own travel insurance might come to the party but in cases such as yours I find a succinct letter to the organisation's CEO is the avenue most likely to produce a result, and a search on the internet will reveal the relevant executive.