British Airways sues ground handlers for $1.2 million over missing gold jewellery
Valuable cargo entrusted to BA disappears during Bahrain to Chicago journey
British Airways (BA) has initiated a $1.2 million lawsuit against a ground-handling company after nearly 20 pounds of gold jewellery vanished during transit from Bahrain to Chicago in July 2023.
The shipment, owned by Bahraini jeweller Al-Arefi Jewelry, was entrusted to BA for transport. After the flight arrived at Chicago O’Hare International Airport, the jewellery – valued in the millions – was reported missing.
Following the incident, Al-Arefi took legal action in Bahrain. In February 2024, a Bahraini court ordered BA to pay 153,000 Bahraini dinars (approximately $406,000) as compensation for the missing cargo. BA, in turn, sought reimbursement from Ground Services International (GSI), the firm responsible for handling baggage at Chicago O’Hare.
When GSI declined to compensate BA, the airline filed its lawsuit in a Chicago court last October. Two employees of GSI, owned by Dubai National Air Travel Agency (Dnata), have already been prosecuted on suspicion of theft.
What’s the claim?
BA alleges that GSI violated the Standard Ground Handling Agreement by failing to secure the valuable cargo. The airline’s claim includes $406,000 to cover the Bahraini court’s ruling, over $700,000 in consequential losses, and more than $100,000 in legal fees.
Court documents, seen by Business Insider, also reveal that a settlement conference has been scheduled for February 11. This critical meeting may decide whether the case moves forward or reaches a resolution.
Dnata’s response
A Dnata spokesperson stated: “Dnata is committed to ethical business practices and operates in compliance with all laws, regulations, and industry standards. Our strict governance guidelines make the rules clear to every employee. We cannot comment further on ongoing legal proceedings.”
As the legal battle unfolds, the focus remains on whether the two companies can reach a settlement or if further courtroom drama lies ahead.