Can an airline limit its liability for lost passenger baggage using its tariffs?

Airlines have the authority to set limits on their liability for lost passenger baggage through their tariffs. This stems from a combination of international conventions and domestic regulations. For example, the Montreal Convention governs international travel and allows airlines to establish liability limits concerning baggage loss. Under this framework, airlines are permitted to declare maximum compensation amounts in their tariffs, provided they appropriately inform passengers of these limits either through their ticketing process or in terms and conditions.

This practice serves to balance the operational risk that airlines undertake since the actual value of passenger baggage can vary significantly. While airlines can set these limits, they are also required to adhere to transparency laws, ensuring travelers are aware of these limits before they fly. Therefore, the option indicating that airlines can limit liability for baggage is fundamentally correct, as it aligns with established legal standards and regulatory practices in aviation law.

The other options lack accuracy regarding how airlines operate within the legal framework surrounding baggage liability. Some suggest absolute prohibitions against limiting liability, which overlooks the established legal provisions that allow for such limitations under specific conditions or contexts, particularly in international travel scenarios.