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Aviation

ICAO raises airline liability limits

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Legal news
calendar 11 December 2024
globus Denmark

The International Civil Aviation Organization (ICAO) has decided to raise the liability limits in the 1999 Montreal Convention again. The inflation factor has increased by more than 10% since 2018, and as a result, the liability limits have been raised.

According to the Montreal Convention, ICAO must revise the liability limits in the Montreal Convention every 5 years. The last time the limits were raised was in 2019. ICAO has now announced that the limits need to be increased again due to the inflation factor having increased by more than 10% since 2018.

According to the Montreal Convention, the new limits must enter into force six months after ICAO has notified the states. This means that the new limits will apply from 28 December 2024. The new limits will apply to most of the world.

The table below shows the percentage increase from the last revision to now. The increase is approximately 18%.

According to the Montreal Convention, ICAO must revise the liability limits in the Montreal Convention every 5 years. The last time the limits were raised was in 2019. ICAO has now announced that the limits need to be increased again due to the inflation factor having increased by more than 10% since 2018.

According to the Montreal Convention, the new limits must enter into force six months after ICAO has notified the states. This means that the new limits will apply from 28 December 2024. The new limits will apply to most of the world.

The table below shows the percentage increase from the last revision to now. The increase is approximately 18%.

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Aage

Krogh

Partner
Liability category The original liability limits 2019-limits 2024-limits Percentage increase
Personal injury compensation (MC99 art. 21)

100,000 SDR

128,821 SDR

151,880 SDR

17,9 %

Passenger delay (MC99 art. 22(1))

4,150 SDR

5,346 SDR

6,303 SDR

17,9 %

Damage, loss, or delay of baggage (MC99 art. 22(2))

1,000 SDR

1,288 SDR

1,519 SDR

17,9 %

Damage, loss, and delay of goods (MC99 art. 22(3))

17 SDR

22 SDR

26 SDR

18,2 %

IUNO's opinion

At IUNO, we consider the significant increase in liability limits a sign that ICAO has become more aware that liability limits are not eroded by inflation and that ICAO wants to protect passengers and other injured parties more effectively.

Airlines should know they may be liable for significantly higher claims than before. The airlines' general terms and conditions must be brought up to date, as well as their websites and brochures.

[Proposal for an act to amend the Danish Aviation Act and to repeal the act on extension of Denmark's participation in the Scandinavian aviation cooperation presented on 2 October 2024]

IUNO's opinion

At IUNO, we consider the significant increase in liability limits a sign that ICAO has become more aware that liability limits are not eroded by inflation and that ICAO wants to protect passengers and other injured parties more effectively.

Airlines should know they may be liable for significantly higher claims than before. The airlines' general terms and conditions must be brought up to date, as well as their websites and brochures.

[Proposal for an act to amend the Danish Aviation Act and to repeal the act on extension of Denmark's participation in the Scandinavian aviation cooperation presented on 2 October 2024]

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