What are the liability limits of an airline in the case of damaged or delayed baggage? What is the compensation amount?

According to Article 4 of the Administrative Regulation No.11/2004, an airline should compensate a passenger in the case of destruction, loss, damage or delay in carriage of his/her baggage, as long as such damages occur on board the aircraft or at any other moment in which the airline is responsible for the luggage. In addition, two points must be noted here: 1. If the damages are due to the characteristics, quality or defect of the baggage, the liability of the airline can be waived or limited. 2. If the airline can prove that it took all reasonably required measures to avoid the occurrence of such damages or losses or if it demonstrates that taking such measures was impossible, the airline is not held responsible for the delay. Bad weather and air traffic control delays are situations that the airline cannot prevent. Therefore, when the delay is due to bad weather or air traffic control reasons the airline is not liable for damages caused by the delay in carriage of baggage.

In what regards the actual amount of compensation, the airline will define the amount after analyzing the impact of the situation on the passenger. According to Article 7 of the Administrative Regulation No. 11/2004 as amended by the Administrative Regulation No.19/2011, the uppermost limit to be paid by the airline to a passenger is 1,131 Special Drawing Rights (Please   to refer to the USD-equivalent, and then exchange to MOP-equivalent), unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires.

The above mentioned liability limits shall not apply if it is proved that the damage resulted from an act or omission of the carrier, its servants or agents, done with intent to cause damage recklessly and with knowledge that damage would probably result, provided that in the case of such act or omission of a servant or agent, it is also proved that such servant or agent was acting within the scope of its employment.