American Airlines ordered to pay Rs 3.61 lakh for torn luggage

A Delhi district consumer commission has directed American Airlines to pay Rs 3.61 lakh to a Delhi couple whose two bags arrived ripped open with several belongings missing when they flew from Miami to Toronto in June 2017. The commission, in its August 14, 2026 order, found the bags were in the airline's exclusive custody and that American Airlines failed to produce any internal investigation report explaining how the damage occurred.

The complainants, Indu Jain and Rajeev Prakash Jain, initially claimed $1,800 at Toronto airport for the missing items and later raised their claim to $17,461.73. American Airlines denied liability, arguing its responsibility was limited under the Carriage by Air Act, 1972 and that the couple had not made a special declaration for valuables. The commission rejected these defences, citing a Supreme Court ruling that the Consumer Protection Act provides an additional remedy even when international carriage limits apply.

The commission also criticised the airline for systematically trying to shift blame to British Airways, which operated the New Delhi-Miami leg. It held the initial $1,800 claim as binding and directed payment of Rs 3.61 lakh along with interest and costs.