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International Flight Liability Increasing


Nov 18, 2009



 

The maximum amount airlines can be held liable for on many international flights for passenger death or injury and lost or damaged baggage is about to increase by 13%.

Carriers already received notice earlier this year about the increase, which goes into effect Dec. 30 as part of the periodic adjustments required under the Montreal Convention. Under Article 24 of the Convention, ICAO reviews the limits every five years in light of the inflation that has occurred during that period. The revised amount reflects inflation between 2003 and 2008 for various countries, as spelled out in the Convention.

The amounts are specified in “special drawing rights,” a group of major currencies periodically reviewed by the International Monetary Fund to reflect the relative importance of the various currencies. As of Oct. 28, the U.S. dollar value of the SDR was $1.58.

Under the increase, the liability limit for death or bodily injury will increase to 113,100 SDRs. For destruction, loss, delay or damage of baggage, the limit will increase to 1,131 per passenger. For cargo, the amount will increase to 19 per kilogram. And for a delay in passenger arrival, the new limit will be 4,694.

Photo: Airbus

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