LONDON – British Airways (BA) has filed a $1.2 million lawsuit against GSI International, a third-party ground handler at Chicago O’Hare International Airport (ORD).
The incident stems from a theft in 2023 in which two ground handler employees stole expensive jewelry from a British Airways cargo hold.
British Airways sues Chicago ground handler
After a Bahrain court ruled against British Airways, the airline is now seeking compensation from GSI International, alleging negligence and procedural deficiencies on the part of its ground handling partners.
British Airways (BA) has filed a $1.2 million lawsuit against GSI International over the theft of jewelry at Chicago’s O’Hare International Airport (ORD). The incident occurred in July 2023 and involved a package arranged by a Bahrain-based jewelry company, PYOK reported.
This precious jewel was entrusted to British Airways for transport from Bahrain to Chicago.
Despite arriving safely at Chicago O’Hare International Airport, the shipment was stolen by two employees of GSI International, the ground handling partner responsible for securing the shipment.
This theft led to arrests, charges, and ultimately legal action. But British Airways was at the center of the fallout when the jewelery company filed suit in Bahrain seeking compensation for its losses.
In February 2024, a Bahrain court ordered British Airways to pay a jewelery company $406,000.
British Airways consulted GSI International and argued that the theft was the result of negligence and breach of terms and conditions by the ground handler.
The airline said the employees involved were under the direct supervision of GSI International and that the ground handlers failed to protect the valuable cargo. Despite these claims, GSI International refused to compensate British Airways for its losses.
The airline subsequently filed suit in Illinois, seeking restitution of $406,000 in court-ordered payments, $100,000 in attorney fees, and more than $700,000 in additional damages, including reputational damages.
British Airways settlement
As the Illinois litigation progresses, there are signs that both parties are seeking an out-of-court settlement to avoid protracted litigation.
The case also highlights the far-reaching implications of the Montreal Convention, an international treaty governing airline liability for loss or damage to cross-border cargo.
Under the Montreal Convention, airlines are held responsible for such incidents and are frequently the subject of legal action.
In this case, British Airways argues that GSI International is responsible given its role in protecting the cargo.
The British Airways case highlights the complexity of liability in international air cargo operations.
As this incident 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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