As the U.S. government goes through more of our luggage, complaints over mishandled bags—and theft—are on the rise. William J. McGee reports

Airline passengers have been complaining about missing, damaged, and pilfered bags since the days of the first commercial flights. But according to statistics tracked by the airlines and the government, these problems have grown markedly worse since November 2002, when the Transportation Security Administration (TSA) assumed responsibility for baggage screening at all U.S. airports. In fact, the mishandled luggage reports that passengers filed with U.S. airlines reached a three-year high in January 2004. Luggage-related complaints lodged each month with the U.S. Department of Transportation tell a similar story: In August 2002, there were 42 such filings, and baggage represented 6.9 percent of all grievances against airlines. By August 2004, the number of luggage-related complaints had tripled to 123; more significantly, though, the percentage of complaints devoted to baggage handling had soared to 20 percent. "Absolutely, it's gotten much worse since the TSA took over," says a 23-year customer service veteran at a major carrier. "We've been processing more claims for pilfering."

The problem of tampering appears to be particularly widespread: For more than a year, the TSA has been plagued by a series of arrests of its screeners for theft in cities including Detroit, Fort Lauderdale, Miami, New Orleans, and Philadelphia. In what was perhaps the most high-profile crackdown, four TSA screeners were arrested in New York in August after complaints filed by numerous passengers, including Chevy Chase and Joan Rivers.

Condé Nast Traveler has also seen an increase in letters from readers who have had items stolen from their checked bags. Recently, this magazine heard from travelers who'd had camera equipment, clothing, shoes, and a CD player pilfered from their luggage. None of these readers have been able to resolve their complaint with either the airlines or the TSA.

According to the Air Transport Association (ATA), the carriers' largest trade group, the problem stems from poorly defined accountability for passenger luggage: In many airports, bags are first handled by airline employees and are then turned over to the TSA for screening before being returned to the carrier. "You've introduced a new party into the process, and the chain of custody is no longer in our control," says Jack Evans, a spokesman for the ATA. Evans is calling for better oversight of baggage handling, because the current system is "a confusing matter" for airlines as well as passengers. "We've seen the spike in complaints," he says, "and we're concerned."

Good news came last September when the TSA announced the adjudication of 17,600 claims totaling $1.5 million. About 15,000 of those filings generated cash settlements averaging $110. Additional information is being sought on another 8,000 claims. "We recognize that there was a lot of confusion," says Darrin Kayser, a spokesman for the TSA. "Passengers were stuck in the middle." He says that the TSA is still working with the airlines to reach a permanent accord on liability. The ATA's Evans confirms that there have been efforts to resolve the dispute but that at press time talks were "at a standstill." Kayser says that in the meantime, the TSA will continue to implement sting operations and work with local law enforcement.

So what should you do if you have baggage problems? If a bag is delayed, lost, or damaged, file a report with the carrier; employees in baggage claim areas can offer assistance. But if there's something missing from a suitcase tagged with a TSA sticker or containing a card announcing that the bag has been searched, contact the TSA (866-289-9673) as well as the airline's baggage representative immediately. If items are missing but the TSA has not marked the bag, file a complaint with the carrier. Regardless of whom you contact, it's important to remember that you must usually file claims within 24 hours—so it's best to do it at the airport. Additional information is available on each carrier's Web site, under "Baggage" or "Contract of Carriage."