Concerns raised about baggage compensation increase
Personal insurance
14th August 2009
Plans to raise the level of compensation offered to air passengers are "not at all healthy" for the industry during the current downturn, it has been claimed.
According Roger Wiltshire, secretary general of the British Air Transport Association (BATA), the "double-digit cost increase" will damage the aviation sector, although carriers do need to "focus on their performance and improve it".
"We don't disagree with the principle of people being compensated appropriately for losing bags," he insisted, but added that margins are currently "pretty tight" and it is a difficult time for airlines to face cost increases.
Those seeking a UK insurance policy to cover travel may be interested to find that a 13.1 per cent rise in compensation for lost baggage has been proposed by the United Nation's International Civil Aviation Organisation, increasing the maximum value of claims from £972.80 to £1,060.48.
The plans are currently undergoing consultation and will come into force within six months of the agency issuing notification unless there is opposition registered by a majority of states.
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