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The Civil Aeronautics Board has reminded airlines of the increase in their limits of liability for death, injury, delays, baggage and cargo issues starting December 28, 2024
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The increase is pursuant to the built-in review mechanism of the Montreal Convention 1999 that adjusts for inflation every five years to ensure that passenger and cargo compensation remains appropriate over time
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The treaty — ratified by the Philippines in 2015 — establishes airline liability in the case of death or injury to passengers, as well as in cases of delay, damage or loss of baggage and cargo
The Civil Aeronautics Board has reminded airlines of the increase in their limits of liability for death, injury, delays, baggage and cargo issues starting December 28, 2024.
The increase is pursuant to the built-in review mechanism of the Montreal Convention 1999 (MC99) that adjusts for inflation every five years to ensure that passenger and cargo compensation remains appropriate over time.
READ: Global air liability limits to increase by yearend
This is the fourth review since MC99 — formally known as the Convention for the Unification of Certain Rules for International Carriage by Air — came into force in 2003.
The treaty establishes airline liability in the case of death or injury to passengers, as well as in cases of delay, damage or loss of baggage and cargo. MC99 is designed to be a single, universal treaty to govern airline liability worldwide.
The Philippines ratified MC99 in 2015.
The new limits of liability, which are indicated in special drawing rights (SDRs), a unit of account defined by the International Monetary Fund, that will be enforced starting December 28 are the following:
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Death of bodily injury (Article 21) – 151,880 SDR (about $202,500) from the current 128,821 SDR
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Delay in passenger transport (Article 22) – 6,303 SDR (about $8,400) from the current 5,346 SDR
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Destruction, loss, damage, or delay in baggage (Article 22) – 1,519 SDR (about $2,000) from the current 1,288 SDR
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Destruction, loss, damage, or delay in cargo (Article 22) – 26 SDR (about $35) from the current 22 SDR
International Civil Aviation Organization (ICAO) secretary general Juan Carlos Salazar in an earlier statement said MC99 “is fundamental in ensuring the protection of consumer interests in international air travel.”
Both the ICAO and International Air Transport Association are pushing for the universal ratification of MC99, which also allows for the use of electronic tickets and air waybills, significantly reducing paperwork and operational costs for airlines.
This modernization, ICAO noted, has simplified processes and enabled more efficient risk management.
Currently, only 140 countries out of the 191 ICAO-contracting states have ratified MC99.
