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LONDON- British Airways (BA) has filed a $1.2 million lawsuit against GSI International, its third-party ground handler at Chicago O’Hare International Airport (ORD).
The case stems from a 2023 theft in which two employees of the ground handler stole high-value jewelry from the cargo hold of a British Airways flight.
Photo: Aero Icarus | FlickrBritish Airways Sues Chicago Ground Handler
After a court in Bahrain ruled against British Airways, the airline is now seeking indemnity from GSI International, alleging negligence and procedural failure on the part of its ground-handling partner.
British Airways (BA) sues GSI International for $1.2 million for jewelry theft at O’Hare International Airport (ORD), Chicago. The incident occurred in July 2023, involving a shipment arranged by a Bahrain-based jewelry firm, as reported by PYOK.
The high-value jewelry was entrusted to British Airways for transport from Bahrain to Chicago.
Despite arriving safely at Chicago O’Hare International Airport, the cargo was stolen by two employees of GSI International, the ground-handling partner responsible for securing the shipment.
The theft led to arrests, prosecutions, and eventual legal action. However, British Airways was at the center of the fallout when the jewelry company filed a lawsuit in Bahrain seeking compensation for its loss.
In February 2024, a Bahraini court ordered British Airways to pay $406,000 to the jewelry firm.
British Airways turned to GSI International, asserting that the theft was a result of the ground handler’s negligence and breach of protocol.
According to the airline, the employees involved were under the direct supervision of GSI International, and the ground handler failed to safeguard the valuable cargo. Despite these claims, GSI International refused to indemnify British Airways for the losses.
The airline subsequently filed a lawsuit in Illinois, seeking reimbursement for the $406,000 court-ordered payment, $100,000 in attorney fees, and over $700,000 in additional damages, including reputational harm.
British Airways Airbus A320 G-EUYV | Photo: Alexander Lang / FlickrBritish Airways Settlement
While the lawsuit progresses in Illinois, there are indications that both parties are exploring an out-of-court settlement to avoid prolonged litigation.
The case also highlights the broader implications of the Montreal Convention, an international treaty governing airline liability for lost or damaged cargo on cross-border shipments.
Under the Montreal Convention, airlines bear liability for such incidents, making them frequent targets of legal action.
In this case, British Airways argues that the responsibility lies with GSI International, given its role in protecting the cargo.
The British Airways lawsuit underscores the complexities of liability in international air cargo operations.
As the case unfolds, it serves as a reminder of the importance of robust ground-handling protocols and clear agreements between airlines and their third-party service providers.
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