Bmi and British Airways have urged the government to reject new proposals that would see the amount of compensation passengers can claim for lost luggage rise from £972.46 to £1,099.85, reports the Telegraph.

The plans, drawn up by the United Nations’ International Civil Aviation Organization, and supported by both the Air Transport Users Council and the Department for Transport, means the amount passengers can claim in compensation if an airline loses their baggage will increase by 13.1%.

The increase comes at a bad time for all airlines, with many having been hit hard by the financial crisis. British Airways, one of the hardest hit, have expressed concern that, in a time of economic downturn, the proposed increase would be inappropriate, even if it is in-line with inflation.