Montreal Convention

Damages

Under the Montreal Convention, air carriers are strictly liable for proven damages up to 128,821 special drawing rights (SDR), a mix of currency values established by the International Monetary Fund, equivalent to approximately US$175,000. For claims exceeding this amount, carriers can avoid liability only by proving that the accident was not due to their negligence or was solely caused by a third party. This defense is not available for claims within the 128,821 SDR limit. The convention also amended the jurisdictional provisions of the Warsaw Convention, allowing victims or their families to bring claims in the country of their principal residence, and requires all air carriers to maintain liability insurance.

Lost baggage

The Montreal Convention increased the maximum liability of airlines for lost, damaged, or delayed baggage to 1,288 SDR per passenger. Under the earlier Warsaw Convention, compensation was calculated based on the weight of the baggage. The Montreal Convention also requires airlines to reimburse passengers for the cost of essential replacement items purchased while baggage is delayed, up to the same 1,288 SDR limit. Baggage that remains undelivered after 21 days is considered lost unless recovered and returned by the airline.

Ratifications

As April 2025, there are 141 parties to the convention. Included in this total is 140 of the 193 ICAO Member States plus the European Union. The states that have ratified represent 139 UN member states plus the Cook Islands.

Criticism

Exclusion of psychiatric injuries

The Montreal Convention does not provide compensation for psychiatric injury unless it is directly linked to physical injury. Article 17, which defines carrier liability for accidents, refers specifically to "bodily injury." As a result, claims for purely psychiatric harm, such as post-traumatic stress disorder without accompanying physical injury, are generally excluded from compensation. This limitation has been the subject of criticism from accident survivors, legal scholars, and affected families.

The issue gained public attention in Australia following the case of Karen Casey, a nurse who experienced psychological trauma after the medical evacuation flight she was attending crashed off Norfolk Island. Australia had amended its laws to align with the Montreal Convention’s terminology, replacing references to "personal injury" with "bodily injury" under the Civil Aviation (Carriers' Liability) Act to ensure consistency with the treaty regarding international flights. However, the amendment also precludes claims for mental injuries unless accompanied by additional physical or property damage. The case and the broader issue were featured in a March 2015 episode of the investigative program Four Corners, which examined concerns about the exclusion of psychiatric injury from compensation claims.

Mobility equipment for disabled passengers

The liability limit of 1,288 SDR for lost, damaged, or delayed baggage also applies to mobility equipment such as wheelchairs, which can present challenges for passengers with disabilities. The value of such equipment often exceeds the compensation cap, and its loss or damage can have a much greater impact on passengers with disabilities than on others losing standard baggage.

The European Commission acknowledged this issue in a communication regarding the liability of air carriers and airports for destroyed, damaged, or lost mobility equipment, issued in connection with Regulation (EC) No 1107/2006 on the rights of disabled persons and persons with reduced mobility when traveling by air. The report noted that, unlike the European Union, jurisdictions such as the United States and Canada require airlines to fully compensate passengers for damage to mobility equipment as a condition for operating in their airspace. The Commission stated that the EU may consider similar measures if existing regulations prove insufficient.

References

References

1. Rapoport, David E.. (October 2002). "A 73-Year Odyssey: The Time Has Come For a New International Air Liability System". International Aviation Law Institute, DePaul University College of Law.
2. "2019 Revised Limits of Liability Under the Montreal Convention of 1999".
3. "MC99".
4. "The Montreal Convention 1999 (MC99)".
5. [http://www.icao.int/secretariat/legal/List%20of%20Parties/Mtl99_EN.pdf Signatures and ratifications].
6. (28 May 1999). "17 – Convention for the Unification of Certain Rules for International Carriage by Air – Montreal, 28 May 1999".
7. [[2009 Pel-Air Westwind ditching]]
8. (22 March 2015). "Pel-Air crash survivor Karen Casey entitled to compensation for psychological trauma, Nick Xenophon says". ABC News.
9. "Karen Casey, Pel-Air crash survivor tells of PTSD on 4 Corners". News.com.au.
10. (23 March 2015). "Ditched". Australian Broadcasting Corporation.
11. "CIVIL AVIATION (CARRIERS' LIABILITY) ACT 1959".
12. [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32006R1107:EN:NOT (EC)1107/2006].
13. [https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52008DC0510&from=EN Scope of Liability].