Three years later, Alitalia still owes me $528 for my lost baggage and ruined Italian vacation

Noah Markewich’s lost-luggage case had “lost cause” written all over it when he contacted me last week.

Why? It involved Alitalia, the historically troubled Italian airline.

It was more than three years old. Old cases are almost always unsolvable.

And it involved misplaced baggage, which is a problematic complaint category.

Still, Markewich epic, four-page, single-spaced letter is such a stunning documentation of an airline’s awful customer service, that I wish I could publish it in its entirety. It describes how Alitalia ruined his Italian vacation by losing his luggage — and when I say “ruin” it may be something of an understatement.

But let me excerpt from it, if you don’t mind:

On June 19th, 2007, we flew Alitalia flight AZ717 from Athens to Rome, connecting with Alitalia flight AZ1463 from Rome to Venice. We each had one checked bag, and Alitalia lost Jennifer’s en route, tag number AZ877762, file reference VCEAZ38232.

It took you 18 days to return this bag, and even then you sent it to our home address in the U.S., though we were still abroad. For the final 21 days of our five-week trip in Europe, Jennifer was without the bag Alitalia lost.

Of course, Jennifer had to live without or replace the items she had so carefully chosen and packed, at considerable expense and inconvenience to both of us. But that doesn’t even begin to tell the story.

He continues,

With few exceptions, your offices left us interminably on hold, randomly disconnected us, or intentionally hung up on us after curtly begrudging us a few impatient moments.

When we were “lucky” enough to get someone to stay on the phone, they seldom had any useful information, often misled or misinformed us, and sometimes outright lied. In short, Alitalia led us on a wild goose chase around Italy, which burned up so much time and money that it essentially ruined our trip.

The rest of his missive details the many efforts he made to recover his luggage — efforts that were repeatedly foiled by Alitalia representatives who didn’t care, couldn’t be bothered, or were just plain rude.

Markewich’s request for compensation is met with a written promise of a $528 check to cover some of his incidental expenses. But the check never arrived.

A year later, Alitalia followed up with bad news: Alitalia had gone under and his claim was now in bankruptcy court.

As you also may have heard, a private Italian investor group known as C.A.I., or Compagnia Aerea Italiana, S.p.A., purchased certain of
Alitalia’s assets – including its trade name – on or about January 13, 2009. C.A.I. is now know as Alitalia-Compagnia Aerea Italiana, S.p.A.

Although we share the same name – “Alitalia” – the new company is completely independent from the bankrupt company in all respects.

Because of this, we are unable to discuss your claim with you and, in any event, have no authority or jurisdiction over its possible resolution.

Thank you for your understanding and cooperation.

That may well be legally correct, but witholding Markewich’s $528 check on a technicality is wrong. I contacted Alitalia on his behalf.

Yesterday, it responded to me:

The passenger has already received a reply from us. We cannot assist as his case pertains to the old company. The old Alitalia went bankrupt in August 2008.

Alitalia CAI is a completely different and separate company and we’re prohibited from discussing or settling case pertaining to the bankrupt company.

Like I said, lost cause.

  • http://byronmiller.typepad.com Ron Miller

    Hi Chris:
    We had a lost baggage episode in France this year flying on Aer Lingus. We eventually got our bags and Aer Lingus compensated us for the replacement clothes and toiletries, but it took more than a week to get our stuff to us. Did we let it ruin our vacation though? No!

    Sure, it was a pain contacting the air line every day, some times multiple times trying to figure out why we didn’t have our bags, but it was fun shopping for stuff in France (and I bought with the idea I might never see the money; I didn’t go crazy). If this guy and his wife let the airline ruin their vacation, that’s sad. We travel a lot and we’ve had missed connections and lost bags aplenty, but we just look at it as part of the adventure. Sure it’s annoying (and it was for us too), but the red wine and the French country side helped a lot. :-)

  • SirWired

    Well, in a tepid defense of Alitalia, I wouldn’t call this a “technicality.” After a bankruptcy, all outstanding debts do indeed disappear (it’s the whole point of declaring BK), and the debtors that did not file any claim to assets lose everything. The “new” Alitalia does indeed have no obligation to pay a dime. This is not something buried in the fine print of a fifty-page ticket contract; it is a fundamental tenet of bankruptcy law.

    Furthermore, it’s not as if Alitalia would be able to win back the business of the OP; I have a funny feeling that even if they cut him a check today out of sympathy, he still wouldn’t be flying the “new” Alitalia.

    That’s not to say I would ever fly Alitalia (either the “old” or “new”), or that the original loss and failure to pay was excusable. I’m just saying that as far as excuses go, debts discharged in bankruptcy is a vaguely-fair one.

  • Teresa

    There are better and worse ways to implement bankruptcy legislation. Among the worse ways — no doubt prevalent in Italy — are to allow all the debts to remain in the bankrupt corporation while the corporation’s assets are transferred over to a new corporation (with the same name!). So, for example, the new Alitalia might get the old Alitalia’s planes but not the old Alitalia’s outstanding liabilities. This just encourages shady business.

    Another bad way of implementing bankruptcy legislation is to effectively discriminate against the creditors who (like Mr. Markewich) are too small to be able to successfully pursue the bankrupt corporation. Is that done in the US?

    Maybe some of the lawyers on the list could suggest the least costly way for Mr. Markewich to try to get some of his his money back? I have a lot of sympathy for him and I think it’s kind of harsh to say he should have made lemons out of lemonade, or that that’s just the way bankruptcy works.

  • http://waynedayton.tripod.com Wayne Dayton

    Funny that they keep the same trade name, same corporate colors, and fly merrily within SkyTeam….but “we’re a new company, so screw you!”. This is NOT like Eastern or Pan Am going under….this is a fine machination of corporate greed to screw the customers, screw the suppliers, and screw the unions. Swissair becomes Swiss Air….and the corporate colors do an inverse. GTL Trucking becomes XTL Trucking and Maislin Transport becomes Maisliner…same facilities, same colors. The least the new AZ could do is give them a travel voucher, whether or not it is ever used would be up to the claimant, but at least both parties would gain a few $$ on the arrangement. Instead, within the tone of CAI’s response I can visualize the proverbial Italian finger salute from across the Atlantic.

  • Brooklyn

    At the very least, the “new” Alitalia should have been able to let him know how to file a claim under the bankruptcy proceedings. I’m sure there are many creditors looking for their money, and where can they get the proper information if not from the company that now calls itself Alitalia?

  • Eric

    This just adds another reason not to fly Alitalia. I’ve had my luggage “delayed” for about 48 hours (I was connecting through Heathrow) and while miffed about that, I can’t imagine having a checked bag lost for the 21 day duration of a vacation!!! And on top of that, never receiving compensation the airline promised in WRITING!

  • Cris

    I’m in the process of booking a flight from Boston to Rome for business. I usually fly other carriers to Europe and try to stick with them, not because of loyalty programs but rather because I’ve always been happy with the level of service. In this case, I was considering flying Alitalia instead because it offers direct service on this route, unlike my preferred carriers. However, this post turned me off. I don’t know if the above incident is the exception or the rule, but I don’t intend to find out.

    This may come as small consolation to Mr. Markowich, but I post this just to illustrate how many of us who read this column do consider these accounts when making our travel plans. An airline that refuses publicly to settle a relatively small sum for a matter in which it admits culpability risks losing a lot of future customers.

  • cjr

    “If this guy and his wife let the airline ruin their vacation, that’s sad.”

    It’s reality. Nobody should have to waste their time while on vacation shopping for the stuff that was packed in their luggage because an airline is incompetent.

  • Arizona Road Warrior

    Alitalia has a well-know history of delaying and losing bags. Why did the OP used them?

    When we travel and there is more than one checked luggage, we divide up our items among the checked luggages instead of having one luggage for my wife, one luggage for my son and one luggage for me. If a luggage is lost, everyone still have some clothing, etc. for the trip.

    It makes sense to purchase a travel insurance policy since foreign airlines can have different rules in regards to lost luggage, delays, etc. It was a five-week vacation Europe, I would have purchased a travel insurance policy. A travel insurance policy would have paid them for thier lost luggage.

  • Jan

    In 2005, I moved to a different country and flew Alitalia from the US. I paid an exorbitant amount for extra bags (I had 5 because I was moving) and all 5 were misplaced. After more than a week of back-and-forth with Alitalia’s local office, they located my bags – still in the airport I departed from. The 5 bags were finally delivered to me a few days later.

    It was clear when I opened them that every single bag had been rifled through and when I inventoried what was originally inside, I found that approximately $500 worth of items (most brand new) had been stolen. These weren’t valuables, jewelry or electronics – they were stupid little things like a portable desk set containing pens, paper clips and post-it notes; and a decade-old exercise video.

    After another week of fighting with the local Alitalia office – which claimed no responsibility whatsoever – I attempted a number of times to contact Alitalia’s corporate customer service and was always directed back to the local office.

    It was an endless of circle of the local office referring me to the corporate office, only to be referred back to the local. No one would claim responsibility and instead blamed it on the ground crew at my departing airport (but wasn’t it Alitalia’s responsibility to protect it from scavenging ground crew whether it was in the US, Italy or my final destination?!?).

    In the end, Alitalia offered me the equivalent of around $10 to reimburse me for the toiletries I had purchased on my first day. I finally got too busy to chase them anymore and just gave up.

    Needless to say, I’ve never flown Alitalia again and I highly recommend to anyone I know traveling through Europe to select a different airline.

  • BucksterSF

    Truly a company who knows when they just don’t have to care.

  • BucksterSF

    I know someone who always sends their things fedex to the hotel when traveling internationally. It’s a bit expensive but they are always there.

  • Carver

    @Ron

    Unless we know what was in the bags, and the OPs ability to replace the items, we should withhold judgment about whether letting the lost bag ruin the vacation makes sense or is an overreaction.

    @Teresa/Wayne

    I practice some bankruptcy in the States. Public corporations do not go into a liquidation (Chapter 7) bankruptcy on a whim. Generally, the shareholders of the originally company lose their entire investment. Additionally, the new company doesn’t negotiate with the old company to purchase the assets, but rather with the trustee. Accordingly, who knows where the assets will end up. Yes, shady things can happen, but the creditors have many options to enforce their rights.

    Unfortunately, it is highly unlikely that the OP will ever see a dime.

    @Brooklyn

    Creditors should receive a letter from the bankruptcy court.

    @Cris

    It would have been inappropriate and possibilty illegal for the old airline to settle with the OP while in bankruptcy

  • Bill

    I agree with the unsolveable comment, but unbelievable? Why is this unbelievable? It is exactly what one would expect from an Italian airline.
    Particularly this one.
    It is also consistant with many of the Skyteam airlines. They have a collection of mostly abysmal airlines.

  • Joe Farrell

    It’s not a technicality – the new company is the old one in name only. The old company is gone. There is no one to pay the bill.

    It is ILTALIAN bankruptcy – only people who get anything are those who have lawyers in Italy looking out for their interests – the chances of an American to get $258 is zero.

    There is a reason why companies that act like this end up shuttered and in bankruptcy.

  • http://www.sanibel-rentals.net Sylvia

    Question to the more knowledgeable….does any kind of travel insurance cover baggage loss? I know it’s too late now, but may be worth something worth considering.

    Years ago two women on our plane “lost” their luggage on a trip to Russia. We were there in winter and at that time clothes were difficult to purchase. Everyone else on the plane/in our hotel felt really bad for the two young gals and we all chipped in (including underwear) to provide enough (warm) clothing to get them through the 2 week trip.

    They had a great time, we all felt good. It was one of those moments in life that works perfectly and they did get their bags back on returning to the USA.

  • Logan

    I would be interested to find out if the EU covers this under their consumer protection rules for air travel. EU law certainly supersedes Italian law, right?

  • Erika

    @Sylvia – Thank you for helping those two young women! I’m sure they will never forget your kindness. You’re my hero.

    As for Alitalia – there is one airline I would like to see disappear completely. Gone, poof, forever. The world would be a much better place.

  • Jeffrey Hess

    i rather wear no underwear or the same underwear over and over then wear a strangers underwear. that is gross.

  • Arizona Road Warrior

    @ Sylvia – “Question to the more knowledgeable….does any kind of travel insurance cover baggage loss?”
    - – - – - – - – - – - – -
    Yes and what is covered depends upon the insurance policy. It is my recommendation that you go to Squaremouth, http://www.squaremouth.com, (they are one of the underwriters of this site) to check out the various travel insurance policies. I have purchased travel insurance policies from them in the past. Please understand that these policies are from insurance companies not travel providers (i.e. cruise lines, tour operaters, airlines, etc.) who has these ‘worthless’ travel protection plan that were written to benefit the travel provider not the traveler.

    Again, depending upon the policy, a typical traveler is protected two ways: 1) Loss of your baggage and personal items and 2) delay of your luggage.

    Delay of luggage: Provides reimbursement for clothing, toiletries and other essential items if luggage is delayed for a specified period of time.

    Baggage & Personal Items Loss: Provides reimbursement for lost, stolen or damaged baggage or personal items. This coverage is usually for a traveler’s entire trip, not just the flight. If you have items valued over $1000 it is best to have these items “scheduled” on your homeowners’ or renter policy.

    Please be advise that Baggage & Personal Items Loss coverage for most policies is secondary to any coverage provided by a Common Carrier and all other valid and collectible insurance indemnity and shall apply only when such other benefits are exhausted. In other words, you can’t double dip…the airline pays you and the insurance company pays you.

    It is very typical that there will be a combined maximum limit shown on a policy’s Confirmation of Benefits for the following items: jewelry; watches; articles consisting in whole or in part of silver, gold or platinum; furs; articles trimmed with or made mostly of fur; sporting equipment, Ski Equipment, personal computers, radios, cameras, camcorders and their accessories and related equipment and other electronic items. These items shouldn’t be in your checked luggage as well as they should be ‘scheduled’ on your homeowner policy or renter policy.

    Depending upon the policy, the coverage for Baggage & Personal Items Loss will also reimburse a traveler for charges and interest incurred due to unauthorized use of your credit cards if such use occurs during your trip and if you have complied with all credit card conditions imposed by the credit card companies. In addition to your unauthorized use of your credit cards, a policy will reimburse a traveler for fees associated with the replacement of a passport during the traveler’s trip.

    Squaremouth has 116 travel insurance policies from 17 different insurance carriers so you need to read the policies when comparing the benefits, to see what is covered and not, etc. The website has a good tool to compare policies.

  • Roberto Pascal

    How is it still in dispute if they promised and never delivered a check for an amount? That amount should still be on the books, no?

  • Wrona

    @Roberto, once a business exits bankruptcy, at least in the US, all it’s previous debts are extinguished, so no a debt from before they exited bankruptcy wouldn’t still be on the books.

  • Jake

    I guess the unfortunate moral of the story is don’t let them drag it out. Demand everything immediately, so that they can’t eventually shirk their responsibility.

  • http://www.sanibel-rentals.net Sylvia

    @ Arizona Road Warrior…Thanks much for the detailed answer!

  • http://www.usascan.com/water Ken

    Chris:

    Regarding your comment, “Still, Markewich epic, four-page, single-spaced letter is such a stunning documentation of an airline’s awful customer service, that I wish I could publish it in its entirety.”

    What is holding you back from publishing this letter in its entirety? Please scan Mr. Markewich’s letter into a PDF or JPG and post it on your website. I would not want to miss reading an epic letter with stunning documentation at http://www.elliott.org.

  • Eric

    Sounds like the airline is really the “lost cause”. Not a very good way to start a business. Losing customers before you’re even IN business.

  • http://www.woodruffinns.com virginia bed and breakfast

    The lost luggage is the most horrible situation faced to any passenger in travel. The airline should do compensate for the loss and provide passengers essential things without taking a single penny from travelers. It is the responsibility of the airline to provide passengers good service without charging them for extra losses.

  • PauletteB

    @Jeffrey Hess: How sad. If you’d rather wear the same pair of underwear day after day than someone else’s clean undies, I hope I never have to sit next to you on a plane!

  • Jesse

    I have had my luggage lost or misplaced in a couple occasions, though it puts a dent on an otherwise fun vacation, it should not ruin someone’s vacation.

    Remember to be prepared for this kind of circumstance, carry on luggage with the minimum clothes alleviates this mishap.

    I also heard of a company which has a jacket with which you can be on the run and without baggage.

  • Mark K

    The only way I can see that the lost luggage “ruined” the trip was if the Airline kept telling you that the luggage would be somewhere at a specific time and you had to be there at exactly that instant to get it only to have it not be there when you arrived and they kept repeating this over and over so that you had no time to actually do the things you wanted to on your trip. Otherwise, it is simply an inconvenience that gives you a good story to tell over drinks.

    I have made multiple trips to Europe and elsewhere in the world over the past few years and never take more than a lage carry on bag regardless of the number of days. It just goes easier that way and no chance of lost luggage. And so what if it means Ineed to do laundry at some point in the trip. It is amazing how many interesting local people you can meet in a laundrymat. You would also be amazed at how little you really need to take with you and still be comfortable and equipped for anything.

  • Carver

    @Mark K

    It is disengenious to suggest that a single large carry-on is an adequate solution for everyone. Perhaps the travelers are

    1. Are large people with big clothes
    2. Need to carry equipment, say a CPAP machine, cameras, etc.
    3. Need to carry business clothing
    4. May not have the financial means to replace the contents of the lost luggage.

    Moreover, whether lost luggage ruins a trip or not is a matter of what was in the luggage, its import to the travelers, and their ability to replace it.

  • SA

    Air
    Line
    In
    Tokyo
    And
    Luggage
    In
    Amsterdam

  • Mark K

    @Carver. Good points. I am a large person (6′ 6″ 300 lbs) so my clothing is definitely not small. And I understand the need some people have to carry various equipment either for their health or their business. I did not mean to suggest that people who really need to carry additional things should just fling them aside and go without. And whatever is in any lost luggage is always very important to the person it belongs to regardless of the cost or effort required to replace it or the apparent unimportance of the items from the viewpoint of someone else.

    When I first started traveling by air many years ago, I always packed everything I thought I would ever possibly need. After a couple trips, I decided I really didn’t need all that stuff because I really didn’t feel like lugging so many bags around. I have been reducing my luggage load gradually ever since. I think I have finally reached the lower limit with 22 pounds of stuff in my single carry on for an average 2 week trip.

    Having airlines loose more of my luggage over the years than I can remember, I have just adopted a minimalist approach to packing and that is what I was attempting to suggest more people should work toward to reduce the aggravation that lost luggage can cause. I have spent 2 months in Hawaii living out of that single carry on which included business clothes for job interviews. I have also gone up to 3 weeks at a time in Europe (in the summer, so no heavy bulky clothing) out of the same carry on. On all these trips, I had everything I needed to cover all types of weather and all types of clothing requirements I encountered. (My role model for packing is Rick Steves who does the PBS travel shows. He does THREE MONTHS every year in Europe out of a single carry on the same size I use.) Yes, I did laundry more than once on each of those trips. Maybe I just have less need for variety in clothing than other people do. A friend stated the other day that he needed one checked bag just for the shoes he would have to have and could not do without on a weekend trip. I have never taken more than 1 extra pair of shoes on any trip (which fit in my carry on with everything else).

  • Tom

    This item should for forwarded to anybody who posts how awful service has become on domestic airlines and how they only fly European airlines because they still understand good service.

  • Carver

    @Mark K

    I too am a big guy. i actually agree with the minimalist approach to packing. I used to pack a 50 pound bag for a weekend trip from sfo to lax. My european trips used to involved about 95 pounds of luggage, plus a carryon. However, after having to climb a million stairs in London, with 2 huge bags and a carryone, and my bags not fitting on the luggage rack of the train, I began downsizing.

    Today, I rarely need to check bags for under a week.

  • Flyer

    I personally don’t like any of this issue, but in the end, that IS generally how the law does work when it comes to a bankruptcy– that is liquidation and not restructuring..

    The OP becomes a creditor– usually UNsecured– and takes his/her place “in line” should any assets remain for claims payments..

    Again, I do suspect that the old-AZ perhaps could have resolved this before they filed, but in the end, as ugly as it may be, the “new” AZ, while perhaps sharing the same name, and has no legal obligation to any of the old claims that were (presumptively) discharged in the bankruptcy proceedings.

  • Noah Markewich

    Here’s an additional excerpt that might help some commenters to understand how Alitalia “ruined” our vacation. If you want to see the entire 4-page complaint, post your email, and I’ll send it to you.

    While we have attached several pages of receipts for replacement items and other incidentals like phone calls and transit costs, they do not even begin to document the vacation value Alitalia took from us when it lost our bag and subjected us to such horrible customer service. If you had just told us from the beginning that we wouldn’t get the bag back in Europe but that it would be sent back to our home in the U.S., we would have spent a day shopping, put the incident behind us, and fully enjoyed the rest of our trip. Instead, you said we’d probably get the bag within hours of arriving in Venice and we didn’t; then your automated system said the bag was found and it wasn’t; then a LAF officer told us the bag was found and in Florence, but it wasn’t; then a LAF officer said we should expect a courier to soon deliver the bag to our hotel, and one didn’t; then a LAF officer said the bag was back in Venice, and it wasn’t. When you weren’t keeping us on hold or hanging up on us, you fed us a steady stream of misinformation and lies, which kept us on the wild goose chase that ruined our trip.