WEST Midlands Liberal Democrat MEP Liz Lynne has welcomed the news of an EU investigation into the compensation given to the millions of passengers whose luggage is lost by airlines each year.

EU Transport Commissioner Antonio Tajani has said he will launch the review after a British passenger watchdog found that many air travelers were left out of pocket due to the current compensations scheme.

The investigation could lead to tighter rules on when airlines have to pay compensation if it is found that current guidelines are not working.

According to the Association of European Airlines, a staggering three million pieces of luggage were lost in 2008 and some watchdogs have said as many of one million of these may be lost forever. Liz said: “This investigation by EU authorities is excellent news for anyone who has suffered the stress and upset of being told their luggage has gone missing.

"It is bad enough to have come back from a holiday or a business meeting to find your possessions have been lost but to then be told you will not be fully reimbursed by the airline adds insult to injury.

“I hope this investigation will result in a clampdown on airlines who try to get around paying compensation and maybe will make companies more careful in future about flying people's baggage to Bangalore instead of Birmingham.”