Montreal Convention

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The Montreal Convention, formally the Convention for the Unification of Certain Rules for International Carriage, is a treaty adopted by a Diplomatic meeting of ICAO member states in 1999. It amended important provisions of the Warsaw Convention's regime concerning compensation for the victims of air disasters. The Convention re-establishes urgently needed uniformity and predictability of rules relating to the international carriage of passengers, baggage and cargo. Whilst maintaining the core provisions which have successfully served the international air transport community for several decades (i.e. the Warsaw regime), the new convention achieves the required modernisation in a number of key areas. It protects passengers by introducing a two-tier liability system and by facilitating the swift recovery of proven damages without the need for lengthy litigation.

Under the Montreal Convention, air carriers are strictly liable for proven damages up to 100,000 Special Drawing Rights (SDR), a mix of currency values established by the International Monetary Fund (IMF), approximately $138,000 per passenger at the time of its ratification by the United States in 2003 (as of June 2009, around $154,800). Where damages of more than 100,000 SDR are sought, the airline may avoid liability by proving that the accident which caused the injury or death was not due to their negligence or was attributable to the negligence of a third party. This defence is not available where damages of less than 100,000 SDR are sought. The Convention also amended the jurisdictional provisions of Warsaw and now allows the victim or their families to sue foreign carriers where they maintain their principal residence, and requires all air carriers to carry liability insurance.

The Montreal Convention changes and generally increases the maximum liability of airlines for lost baggage to a fixed amount 1000 SDR (the amount in the Warsaw Convention is based on weight of the baggage).

Montreal Convention was brought about mainly to amend liabilities to be paid to families for death or injury whilst on board an aircraft.

As of December 2008, there were 87 signatories to the Montreal Convention, including the United States, European Union (EU), Canada, China, Japan, Korea and Mexico.^[1]

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