LIABILITY LIMITS UNDER THE MONTREAL CONVENTION 1999 SET TO INCREASE BY 18%
On 18 October 2024, the International Civil Aviation Organisation (ICAO) announced that the limits of liability under the Montreal Convention 1999 (the Convention) will be increasing. The announcement comes as part of the Convention’s five-year review mechanism under Article 24, which was designed to ensure that passenger compensation remains relevant over time.
The changes, which will come into force on 28 December 2024, are as follows:
a. The limit for death or bodily injury under Article 21 will increase from 128,821 SDRs to 151,880 SDRs (approximately AU$302,241);
b. The limit for delay in passenger transport under Article 22(1) will increase from 5,346 SDRs to 6,303 SDRs (approximately AU$12,543).
c. The limit for destruction, loss, damage, or delay of baggage under Article 22(2) will increase from 1,288 SDRs to 1,519 SDRs (approximately AU$3,023).
d. The limit for destruction, loss, damage, or delay of cargo under Article 22(3) will increase from 22 SDRs to 26 SDRs per kilogram (approximately AU$52/kg).
Liability limits under the Convention are expressed in Special Drawing Rights (SDRs), which, as of 21 October 2024, are valued at AU$1.99.
The Montreal Convention 1999 is given force of law in Australia by section 9B of the Civil Aviation (Carriers’ Liability) Act 1959 and accordingly, these amended limits will apply in Australia for carriage which is subject to the Montreal Convention 1999 occurring after 28 December 2024.
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