subject: Controlling Baggage Losses To Provide Cheapest Air Tickets [print this page] It would be interesting to note how much does the airlines pay off annually towards losses or the claims for the losses. By one estimate, the airlines lose billions of dollars annually worldwide in the losses. Where do you think that these losses would be recovered from? Of course, it is the so called cheapest air tickets, which do factor in these losses in their price calculations and these are ultimately charged from the customers who buy these tickets. The accounting treatment of these losses would depend on the nature of the losses incurred. If the loss is of a recurring nature, over which the airline has no control, then it might be set-off from the profits of the airline. But, if the loss is of non-recurring nature and occurs once in a while then it could be set-off gradually. Whatever be the treatment of the losses in accounting terms, the losses which are taken out from the profits of the airlines, are an unbearable burden on the airlines and it would certainly like to minimize these losses.
There have been a number of efforts to control the various losses which are afflicted by the airlines. The most common of these are the losses related to baggage and the claims thereof. These losses typically arise due to a number of reasons such as improper tagging, failure to ensure tracking of the movement of baggage and mishandling. It has been realized that by improving the ground handling procedures which can prevent the losses of these baggage, the airlines can prevent the loss claims which are disproportionately high and which are usually settled in favor of the passengers. Better streamlining of the baggage movements and ensuring that their status is known right through the different stages through which these pass, can ensure that these losses can be prevented. There is also a need to control the instances of theft through better manned and electronic surveillance systems and ensuring that these are strategically placed, well maintained and kept running all the times.
The instances of loss of baggage are more prevalent in case of the connecting flights. This generally happens due to improper coordination between the airlines and the inability to properly track the movement of the baggage.
Loss of baggage can also happen due to the damage sustained by it because of its mishandling by the staff. The cheapest air tickets of the airlines can be cheaper still if the airlines stop taking into account these losses in the price calculations of their tickets and passing that on to the passengers.
