The International Civil Aviation Organisation has increased the Montreal Convention liability limits for death, injury, delays, baggage and cargo issues, effective from 28 December 2024.
The limits were increased in accordance with the Convention’s review mechanism to adjust for inflation every five years.
The limits have been revised as follows:
- Injury/death: The Article 21 strict liability limit increased from 128,821 Special Drawing Rights (“SDRs”) to 151,880 SDRs (approx. AUD $312,788);
- Delay: The limit under Article 22(1) increased from 5,346 SDRs to 6,303 SDRs (approx. AUD $12,981);
- Baggage: The limit under Article 22(2) increased from 1,288 SDRs to 1,519 SDRs (approx. AUD $3,129); and
- Cargo: The limit under Article 22(3) increased from 22 SDRs to 26 SDRs per kilogram (approx. AUD$53.55).
It is important to note that the applicability of the increased liability limits may turn on the manner in which a Contracting State ratified the Montreal Convention under its local legislation.
For example, as the Montreal Convention has been implemented into Australian law through Part 1A of the Civil Aviation (Carrier’s Liability) Act 1959 (Cth), the revised liability limits automatically came into effect in Australia as of 28 December 2024.
For those Contracting States who have ratified the Convention by inclusion of the wording of the Convention as a stand-alone statute, the revised limits will not automatically take effect until they amend their own local legislation.
Air carriers should review their liability and insurance arrangements in light of this development.
This article was written by Matthew Brooks, Partner and Ben Pool, Senior Associate.
