OTTAWA - April 30, 2008 - The Canadian Transportation Agency today ruled that, for international carriage, Air Canada is liable for up to the maximum amount of liability provided by the Montreal Convention, that is, 1,000 Special Drawing Rights, in cases of loss of items contained in checked baggage that it agrees to carry while such items are in its care and control.
As with any other currency, the value of one "Special Drawing Right" fluctuates throughout the year and was worth, as of April 29, 2008, $1.646830. With that in mind, travellers should always remember that air carriers have limited liability for lost, delayed or damaged baggage. If, in the opinion of the travellers, the limit of liability is too low, they should consider declaring a higher value for their checked baggage and buying supplementary insurance to obtain better compensation. As well, air carriers will not normally compensate travellers for more than the actual loss suffered and will likely request proof of loss. It is always prudent to carry certain items, such as valuable items, medication and electronic equipment, on-board the aircraft.
While Decision No. 227-C-A-2008 only concerns international carriage on Air Canada, the Agency could, in any future Decisions dealing with the loss of checked baggage, take its previous Decisions into consideration for consistency purposes. Therefore, the Agency intends to send out letters to all air carriers offering services within, to or from Canada to make them aware of this precedent-setting Decision.
The Canadian Transportation Agency is an independent quasi-judicial tribunal which operates like a court. It regulates various modes of transportation under Government of Canada jurisdiction, including air, marine and rail. Its decision-making process is governed by the rules of fairness and natural justice to ensure that all parties in a complaint receive equitable treatment.
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For further information, please contact:
News Media Enquiries: Jadrino Huot at 819-953-9957
General Public Enquiries: info@cta-otc.gc.ca; 1-888-222-2592
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