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Montreal Convention 1999 Overview

The document discusses the Montreal Convention of 1999 (MC99), which aims to establish a single global standard for airline liability. It entered into force in 2003 but has yet to achieve universal ratification. MC99 provides benefits to passengers through modernized liability rules and protections, while allowing electronic air waybills and simplified claims processes that benefit airlines and shippers. The document urges all remaining states, particularly in Africa, to ratify MC99 to realize its trade facilitation benefits and avoid unfairness from differing liability regimes.

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Krisha Marie Carlos
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657 views17 pages

Montreal Convention 1999 Overview

The document discusses the Montreal Convention of 1999 (MC99), which aims to establish a single global standard for airline liability. It entered into force in 2003 but has yet to achieve universal ratification. MC99 provides benefits to passengers through modernized liability rules and protections, while allowing electronic air waybills and simplified claims processes that benefit airlines and shippers. The document urges all remaining states, particularly in Africa, to ratify MC99 to realize its trade facilitation benefits and avoid unfairness from differing liability regimes.

Uploaded by

Krisha Marie Carlos
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
  • Introduction to Montreal Convention: Provides an overview of the Montreal Convention 1999, introducing its purpose and stakeholders.
  • Overview of Montreal Convention 1999: Explains the significance of the Montreal Convention 1999, its history, and international implications for airline liability.
  • Current Status of MC99: Details the progress in ratification of MC99 by various countries, highlighting regions that have yet to ratify it.
  • Ratification Map: Visual representation of countries that have ratified MC99, providing global compliance overview.
  • Challenges in Application: Discusses ongoing complexities and examples of issues faced in airline liability application under MC99.
  • Modern Features of MC99: Compares MC99 with previous conventions, highlighting monetary caps and modern alternatives.
  • Air Cargo Disadvantages: Analyzes challenges faced by air cargo operations in non-MC99 participating countries.
  • Call for Ratification: Motivates urgency for ratification by detailing ICAO's efforts and global benefits of ratification.
  • Importance of MC99: Explores the practical benefits of MC99, emphasizing its economic advantages to stakeholders.
  • Passenger Protections Under MC99: Outlines protections for passengers, detailing compensation rights in various jurisdictions.
  • Cargo Benefits Analysis: Evaluates the advantages for cargo operations under MC99, emphasizing logistics improvements.
  • Economic Value of MC99: Highlights the economic impact and increased trade facilitated by MC99 adoption.
  • Trade Facilitation Potential: Presents data on MC99’s influence on global trade ease and efficiency.
  • Summary and Conclusion: Summarizes the key benefits and importance of adopting MC99 to stakeholders worldwide.

Montreal Convention 1999: a global standard

Tim Colehan
Assistant Director External Affairs
Montreal Convention 1999

• MC99 is intended to replace the patchwork of regimes that


developed since the Warsaw Convention in 1929
• Entered in to force in 2003
• It governs airline liability for passengers, baggage and cargo on
international flights in cases of:
• death, injury or delay to passengers
• delay, loss or damage to baggage
• delay, loss or damage to cargo
• IATA and its member airlines continue to support ICAO in promoting
MC99 as the single, global Convention on airline liability
2
MC99 status today
• 14 years after entry into force, 70% (129 Parties) have now ratified
MC99
• A number of States have ratified this year including:
– Chad
– Indonesia
– Mauritius
– Russia
– Swaziland
– Sudan
– Thailand
• 23 African States have not yet ratified
• The ‘patchwork’ of regimes that MC99 was designed to replace still
remains in place 3
128 States + the EU have ratified MC99
(~70% of total)
Unfairness and complexity still exists…………..
Why aisflight
Example: MC99fromso important?
Luanda, Angola (LAD) to Dubai, UAE (DXB))

Passenger 1 Passenger 3
Passenger 2 Seat 4C
Seat 4A
Seat 4B LAD-DXB
LAD-DXB-LAD
DXB-LAD-DXB (WC29/HP55)
(WC29/HP55)
(MC99)

5
MC99 is modern and fair
Warsaw Hague Protocol Additional Montreal
Convention (1955) Protocol 2 + Convention
(1929) Montreal 1999*
Protocol 4
Death or injury USD 12,000 USD 24,000 USD 25,000 USD 160,000
(first threshold, higher sums
recoverable)

Baggage USD 20 per kg USD 20 per kg USD 25 per kg USD 1,600


(new global limit, approx. USD 70
per kg on 23kg bag)

Cargo USD 20 per kg USD 20 per kg USD 25 per kg USD 27 per6 kg


Provisions for
electronic air No No Yes Yes
waybills? (with other MP4 Parties only)

NB. *Treaties don’t express limits in USD but in IMF Special Drawing Rights (SDR). These have been calculated using [Link] for
comparison purposes.
Shippers using air cargo in non-MC99/MP4 countries are
disadvantaged

MC99 (e-AWB)
No paper
CPT
Cape Town
MC99 (e-AWB)
No paper
Warsaw Hague
(paper air waybill) ADD
Addis Ababa

DXB Warsaw Hague LAD


(paper air waybill) Luanda

WDH
Windhoek TUN
Tunis
MC99 (e-AWB) No paper
ICAO is urging ratification
Why is MC99 so important?

• It represents a win-win for all stakeholders


• Important protections and benefits for passengers
➢ Faster shipments for businesses that rely on air cargo
➢ Reduction in administration, cargo litigation and ability to use electronic
air waybills for airlines
➢ A practical, no-cost trade facilitation measure, so good for the economy

9
Passengers I

• Sensible and fair rules for death and injury under MC99 – makes
available full compensation:
– first tier recovery threshold: SDR 113,100 (USD 170,000) for death/injury
arising from an “accident”
– carrier is presumptively liable up to this amount (passengers do not have to
prove fault, just quantum)
– can recover above first tier, but carrier defenses applicable

• Ends limits as low as just USD 12,000 and USD 24,000 for death and
injury under Warsaw/Hague regime

10
Passengers II

• Consumer friendly – can claim in five jurisdictions:


– domicile of carrier
– carrier’s principal place of business
– carrier’s place of business where contract made
– place of destination
– passenger’s place of principal/permanent residence

• Allows immediate assistance payments


11
Passengers III

• Indexed limits/thresholds:
– all limits can be revised under review clause
– ensures MC99 remains a modern and relevant regime

12
Cargo benefits I

• MC99 permits substitution of air waybills by other


means preserving a record of carriage
• IATA electronic air waybill (e-AWB) project is
compatible with MC99
• eAWB can only be implemented in MC99 trade
lanes (where both States are Parties to MC99*)
• eAWB delivers improved shipment times, customs
compliance, security and competitiveness of air
freight versus other modes
*or between Parties to MP4
13
Cargo benefits II

• Unbreakable limit for cargo


– SDR 19 per kilogram – unbreakable
– higher limit available if special declaration made and
supplementary sum paid to carrier
– brings certainty to carriers – ends arbitrary rule where
documentary/waybill particulars missing, carrier would
lose limit of liability: see Warsaw/Hague

• Result: simplified claims handling and less


litigation for airlines

14
MC99 can deliver significant economic value

Share of global passenger traffic covered by MC99

US$ 493 Billion


additional bilateral trade
opened to e-freight

+316m Equivalent to
passengers 95% 7% of air cargo
by value
86%

Source: IATA Economics using PaxIS


Trade facilitation – MC99 can help!

16
Summary
– MC99 offers a host of benefits for airlines, passengers, shippers and
governments
– ICAO itself is urging all remaining States to ratify MC99
– Africa is a dynamic, fast growing aviation market – MC99 is an
example of international regulation best practice
– We call on all remaining States to become a party to MC99 at the
earliest possible opportunity

17

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