{"id":2763,"date":"2025-02-20T12:56:20","date_gmt":"2025-02-20T11:56:20","guid":{"rendered":"https:\/\/stenger.legal\/?p=2763"},"modified":"2025-02-20T12:56:20","modified_gmt":"2025-02-20T11:56:20","slug":"adjustment-of-liability-limits-in-the-montreal-convention-historical-development-and-implications-for-the-daily-business","status":"publish","type":"post","link":"https:\/\/stenger.legal\/en\/adjustment-of-liability-limits-in-the-montreal-convention-historical-development-and-implications-for-the-daily-business\/","title":{"rendered":"Adjustment of liability limits in the Montreal Convention: Historical development and implications for the daily business"},"content":{"rendered":"<div id='av_section_1'  class='avia-section av-k0maauhv-722d794a503aa9e6eb7a4cdae65264d0 alternate_color avia-section-large avia-no-border-styling  avia-builder-el-0  el_before_av_section  avia-builder-el-first  avia-bg-style-scroll container_wrap fullsize'  ><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-2763'><div class='entry-content-wrapper clearfix'>\n<div class='flex_column_table av-k0macqdy-22b5bde472144ce07ad1bd648fc1f15e sc-av_one_full av-equal-height-column-flextable'>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k0macqdy-22b5bde472144ce07ad1bd648fc1f15e\">\n.flex_column.av-k0macqdy-22b5bde472144ce07ad1bd648fc1f15e{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-k0macqdy-22b5bde472144ce07ad1bd648fc1f15e av_one_full  avia-builder-el-1  avia-builder-el-no-sibling  first flex_column_table_cell av-equal-height-column av-align-bottom av-animated-generic fade-in av-zero-column-padding '     ><p><section  class='av_textblock_section av-akjvjb-8cf54157fdaed6af9f110ba0b2977a4c'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><b>Aviation Law<\/b><\/p>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kwc3w1d3-ea3125c51f088506823f6a01197af1dd\">\n#top .av-special-heading.av-kwc3w1d3-ea3125c51f088506823f6a01197af1dd{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kwc3w1d3-ea3125c51f088506823f6a01197af1dd .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kwc3w1d3-ea3125c51f088506823f6a01197af1dd .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kwc3w1d3-ea3125c51f088506823f6a01197af1dd av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  el_after_av_textblock  avia-builder-el-last  av-linked-heading'><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Adjustment of liability limits in the Montreal Convention: Historical development and implications for the daily business<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><\/p><\/div><\/div><!--close column table wrapper. Autoclose: 1 -->\n\n<\/div><\/div><\/main><!-- close content main element --><\/div><\/div><div id='av_section_2'  class='avia-section av-1trcuv-ebc1ccef8da3744187d350f1b5df0597 main_color avia-section-large avia-no-border-styling  avia-builder-el-4  el_after_av_section  el_before_av_section  avia-bg-style-scroll container_wrap fullsize'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-2763'><div class='entry-content-wrapper clearfix'>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-dhmgdj-0d223fc6d5835d8321527e1f634715f3\">\n.flex_column.av-dhmgdj-0d223fc6d5835d8321527e1f634715f3{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-dhmgdj-0d223fc6d5835d8321527e1f634715f3 av_one_fifth  avia-builder-el-5  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.av-image-caption-overlay-center{\ncolor:#ffffff;\n}\n<\/style>\n<div  class='avia-image-container av-kl15mkxp-6547f9048e67e5d9eb8da9bd4382fde6 av-styling-no-styling avia-align-center  avia-builder-el-7  avia-builder-el-no-sibling '   itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\" ><div class=\"avia-image-container-inner\"><div class=\"avia-image-overlay-wrap\"><img decoding=\"async\" class='wp-image-2759 avia-img-lazy-loading-not-2759 avia_image ' src=\"https:\/\/stenger.legal\/wp-content\/uploads\/2025\/01\/900x450-montreal-convention.jpg\" alt='' title='900x450 montreal convention'  height=\"450\" width=\"900\"  itemprop=\"thumbnailUrl\" srcset=\"https:\/\/stenger.legal\/wp-content\/uploads\/2025\/01\/900x450-montreal-convention.jpg 900w, https:\/\/stenger.legal\/wp-content\/uploads\/2025\/01\/900x450-montreal-convention-300x150.jpg 300w, https:\/\/stenger.legal\/wp-content\/uploads\/2025\/01\/900x450-montreal-convention-768x384.jpg 768w, https:\/\/stenger.legal\/wp-content\/uploads\/2025\/01\/900x450-montreal-convention-360x180.jpg 360w, https:\/\/stenger.legal\/wp-content\/uploads\/2025\/01\/900x450-montreal-convention-705x353.jpg 705w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/div><\/div><\/div><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-dhmgdj-10-6258e01dfdff79e8dd1b5b46f1a641a5\">\n.flex_column.av-dhmgdj-10-6258e01dfdff79e8dd1b5b46f1a641a5{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-dhmgdj-10-6258e01dfdff79e8dd1b5b46f1a641a5 av_one_fifth  avia-builder-el-8  el_after_av_three_fifth  el_before_av_one_fourth  flex_column_div av-zero-column-padding '     ><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-dhmgdj-9-27e0ec82a738421997b1632cd35b3567\">\n.flex_column.av-dhmgdj-9-27e0ec82a738421997b1632cd35b3567{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-dhmgdj-9-27e0ec82a738421997b1632cd35b3567 av_one_fourth  avia-builder-el-9  el_after_av_one_fifth  el_before_av_one_half  first flex_column_div av-zero-column-padding column-top-margin'     ><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-c66f6f-a2fdf59e8bd97eb8c5f963f91b9389a2\">\n.flex_column.av-c66f6f-a2fdf59e8bd97eb8c5f963f91b9389a2{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-c66f6f-a2fdf59e8bd97eb8c5f963f91b9389a2 av_one_half  avia-builder-el-10  el_after_av_one_fourth  el_before_av_one_fourth  flex_column_div av-zero-column-padding column-top-margin'     ><p><section  class='av_textblock_section av-akjvjb-12-8cb5ce5680c3860ef7e0a7101a1a5450'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><strong>January 20th, 2025<\/strong><\/p>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-akjvjb-8-de6a06891bb77fc1b9f222c6970e2137\">\n#top .av_textblock_section.av-akjvjb-8-de6a06891bb77fc1b9f222c6970e2137 .avia_textblock{\nfont-size:24px;\n}\n<\/style>\n<section  class='av_textblock_section av-akjvjb-8-de6a06891bb77fc1b9f222c6970e2137'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>The Montreal Convention (MC) of 1999 forms one of the central foundations of international law in international air transport. Among other things, it regulates the liability of air carriers in the event of damage to passengers, baggage and cargo as well as delays. In accordance with Article 24 (1) of the MC, the liability limits set out in the MC are regularly reviewed and, if necessary, adjusted to take account of inflation and economic developments. This article examines the development of the liability amounts since the beginning of the Convention, provides an overview of the newly adjusted applicable amounts and analyses shortly the effects of the adjustments on the aviation industry.<\/p>\n<\/div><\/section><br \/>\n<section  class='av_textblock_section av-akjvjb-7-fc701bd38ce8f7cece95b0d562520b44'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><strong>1. The Montreal Convention and its liability rules<\/strong><\/p>\n<p>The Montreal Convention was introduced to create uniform rules for the liability of air carriers and to modernise the Warsaw Convention of 1929, which had been in force until then. The focus was primarily addressed to<br \/>\nArticle 17: Liability for death or personal injury of passengers.<br \/>\nArticle 18: Liability for loss, damage or delay of baggage and cargo.<br \/>\nArticle 19: Liability for delays.<br \/>\nArticle 21: No limits of liability for proven fault.<br \/>\nArticle 22: Fixed limits of liability for baggage and cargo.<\/p>\n<p>Where liability limits are provided for, these are specified as maximum amounts in so-called Special Drawing Rights (SDRs). This is an international currency unit of the International Monetary Fund (IMF) to minimise exchange rate risks. The SDRs comprise the US-Dollar, Euro, Chinese Yuan, Japanese Yen and British Pound Sterling. They are calculated daily and can be accessed on the IMF website under <a href=\"https:\/\/www.imf.org\/external\/np\/fin\/data\/rms_sdrv.aspx\">SDR Valuation<\/a>.<\/p>\n<p>The liability limits of the MC have been adjusted several times since it came into force in 2004. In accordance with Article 24 (1) sentence 1 of the Convention, a review is carried out every five years to determine whether an adjustment is necessary. This review is based on the change in the World Consumer Price Index (CPI):<\/p>\n<p><strong>a) Limits of liability upon entry into force (2004)<\/strong><\/p>\n<p>&#8211; Death or personal injury (Article 21): 100,000 SDR.<br \/>\n&#8211; Damage, loss or delay of baggage (Article 22(2)): 1,000 SDRs.<br \/>\n&#8211; Damage caused by delay (Article 22(1)): 4,150 SDRS.<br \/>\n&#8211; Loss of or damage to cargo (Article 22(3)): 17 SDRs per kilogramme (damage or loss).<\/p>\n<p><strong>b) First adjustment of the liability limits (2009)<\/strong><\/p>\n<p>The amounts were adjusted following the review in 2009:<\/p>\n<p>&#8211; Death or bodily injury: 113,100 SDRs<br \/>\n&#8211; Baggage: 1,131 SDRs.<br \/>\n&#8211; Delay: 4,694 SDRs<br \/>\n&#8211; Cargo: 19 SDRs per kilogramme.<\/p>\n<p><strong>c) Second adjustment of the liability limits (2019)<\/strong><\/p>\n<p>The next adjustment was made in 2019, with the following amounts coming into force<\/p>\n<p>&#8211; Death or personal injury: 128,821 SDRs.<br \/>\n&#8211; Baggage: 1,288 SDRs.<br \/>\n&#8211; Delay: 5,346 SDRs<br \/>\n&#8211; Cargo: 22 SDRs per kilogramme.<\/p>\n<p><strong>d) Current adjustment of the liability limits at the end of 2024<\/strong><\/p>\n<p>Following the last review and increase at the end of 2019, the ICAO had requested the 140 contracting states to implement the next increase by 28 December 2024 in accordance with Art. 24 para. 1 sentence 1 of the MC. Germany has complied with this request. The Third Ordinance on the Entry into Force of the Adjusted Maximum Liability Amounts of the Montreal Convention was published in the Federal Law Gazette on 23 December 2024. The amounts have been increased as follows<\/p>\n<p>&#8211; Death or personal injury: 151,880 SDRs.<br \/>\n&#8211; Baggage damage and baggage delay damage: 1,519 SDRs<br \/>\n&#8211; Delay: 6,303 SDRs.<br \/>\n&#8211; Cargo: 26 SDRs per kilogramme.<\/p>\n<p><strong>2. Effects of the adjustments on practice<\/strong><\/p>\n<p>For calculating the limits of the amount of damages, the version of the MC is decisive which was in force when the damage occurred. The regular adjustments to the liability limits mean potentially higher financial burdens for airlines. The total liability claims can increase significantly, particularly in the event of mass damage, for example due to aircraft accidents. However, most airlines seek protection by having respective insurance policies, for which the premiums are rising accordingly.<\/p>\n<p>For passengers, the higher liability limits mean improved protection. In the event of loss or damaged baggage, the amount of compensation is now significantly higher than at the beginning of the MC. The increased liability limit also ensures more appropriate compensation in the event of bodily injury.<\/p>\n<p>The insurance industry faces the challenge of integrating the growing liability amounts into its policies. This may lead to an increase in premiums, which could have an indirect impact on ticket prices.<\/p>\n<p><strong>3. Challenges<\/strong><\/p>\n<p>The regular adjustment of liability limits in the Montreal Convention is an important mechanism to ensure the relevance of the regulations in a dynamic economic environment. However, this poses various challenges:<br \/>\nAir carriers will need to proactively manage the adjustment of insurance policies. Furthermore, this could lead to the development of innovative insurance solutions. In addition, the new liability regulations should be communicated transparently to passengers.<\/p>\n<p>For the legislator, the provisions of the MC mean that the economic impact of the adjustments should be continuously monitored. It must also be ensured that the new amounts of the MC are in line with other international conventions.<\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The adjustment of the liability amounts in the MC is a dynamic instrument that could be regarded as benefit to both passengers and airlines. The continuous increase in the amounts not only reflects economic realities, but also demonstrates the endeavour to make international air transport fair and transparent. However, it should also be emphasised that not all states implement the adjustments promptly, which can lead to legal uncertainties. Finally, the increase in liability costs is a factor that can place an excessive burden on financial resources.<\/p>\n<\/div><\/section><\/p><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-78sj7b-5981ae9f9ed2ce3ea05800ac98725130\">\n.flex_column.av-78sj7b-5981ae9f9ed2ce3ea05800ac98725130{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-78sj7b-5981ae9f9ed2ce3ea05800ac98725130 av_one_fourth  avia-builder-el-14  el_after_av_one_half  avia-builder-el-last  flex_column_div av-zero-column-padding column-top-margin'     ><\/div><\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='av_section_3'  class='avia-section av-k0maauhv-13-9487a2d4cd68638d6ae48b95e09dc666 alternate_color avia-section-large avia-no-border-styling  avia-builder-el-15  el_after_av_section  avia-builder-el-last  avia-bg-style-scroll 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data-created_by=\"avia_inline_auto\" id=\"style-css-av-6khu07-f717ddc046eef236834079e21720ef46\">\n.flex_column.av-6khu07-f717ddc046eef236834079e21720ef46{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-6khu07-f717ddc046eef236834079e21720ef46 av_one_half  avia-builder-el-19  el_after_av_one_fourth  el_before_av_one_fourth  flex_column_div av-zero-column-padding column-top-margin'     ><div class=\"single-contact no-link avia-builder-el-20  avia-builder-el-no-sibling \"><div class=\"single-contact-inner\"><p>Contact<\/p><p><img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"320\" src=\"https:\/\/stenger.legal\/wp-content\/uploads\/2020\/02\/stenger-rechtsanwaelte-dr-wiebke-seyffert-250x320.jpg\" class=\"wp-image-879 avia-img-lazy-loading-879 attachment-lawyer-thumbnail size-lawyer-thumbnail wp-post-image\" alt=\"\" \/><\/p><p><strong>Dr. Wiebke Seyffert<\/strong><\/p><p><a href=\"tel:+49 (40) 36 09 86 0\">T: +49 (40) 36 09 86 0<\/a><br><a href=\"mailto:wseyffert@stenger.legal\">M: wseyffert@stenger.legal<\/a><\/p><\/div><\/div><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-25a3ev-1a17c42911c13ecd4b0829311f17473b\">\n.flex_column.av-25a3ev-1a17c42911c13ecd4b0829311f17473b{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-25a3ev-1a17c42911c13ecd4b0829311f17473b av_one_fourth  avia-builder-el-21  el_after_av_one_half  avia-builder-el-last  flex_column_div av-zero-column-padding column-top-margin'     ><\/div>\n<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":2759,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[62],"tags":[],"class_list":["post-2763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aviation-law"],"acf":[],"_links":{"self":[{"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/posts\/2763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/comments?post=2763"}],"version-history":[{"count":2,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/posts\/2763\/revisions"}],"predecessor-version":[{"id":2790,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/posts\/2763\/revisions\/2790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/media\/2759"}],"wp:attachment":[{"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/media?parent=2763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/categories?post=2763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stenger.legal\/en\/wp-json\/wp\/v2\/tags?post=2763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}