Abdel Njiasse’s Post

  Understanding the Escalator clause of the Montreal Convention   The Montreal Convention, a comprehensive international treaty governing air carriage, includes an important provision known as the "escalator clause." This mechanism ensures that the liability limits set by the Convention remain relevant over time, adjusting for inflation and maintaining their effectiveness. The escalator clause, formally known as Article 24, mandates a periodic review of liability limits every five (05) years. This review compares the current limits to an inflation index, which reflects the cumulative rate of inflation since the last assessment. The specific inflation index used for the review is determined by the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations. The International Civil Aviation Organization (ICAO) has recently increased the maximum liability of air carriers for cargo damage. Effective December 28, 2024, the new limit will be 26 Special Drawing Rights (SDR) per kilogram, up from the previous 22 SDR/kg. This translates to an approximate increase from USD 30/kg to USD 35/kg at current exchange rates. The escalator clause is a valuable tool for maintaining the relevance and effectiveness of the Montreal Convention. By automatically adjusting liability limits to account for inflation, this provision ensures that the Convention continues to provide adequate protection for passengers, cargo owners, and airlines alike. Reach out to us, Blue Recovery Solutions to learn more about transport (sea, air and road) related cases. ➡️ Message me here on LinkedIn 📩 Abdel.Njiasse@bluerecoverysolutions.com #Aviation #AirTravel #Montrealconvention #FlightStatistics #GlobalConnectivity #AviationIndustry #AirTransport

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Yves Pangop, LLM

Branch Claims Manager | Cargo Survey Coordination, Inspection and Reporting

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