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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International Air Transport Association (IATA) is disappointed in the decision taken by the Supreme Court of Canada on the Air Passenger Protection Regulations. A coalition of various representatives from the aviation industry had brought the proceedings with the aim of upholding the liability provisions of the Montreal Convention on the international carriage of passengers by air, a treaty to which Canada is party. Protecting the interests of passengers is best achieved through a safe, efficient journey where disruptions are minimized. While airlines play a critical role in this, the federal government also needs to focus its efforts on improving the overall air travel system, especially in the parts of the value chain which are directly under its control. The industry has called for “joint accountability” on numerous occasions but this has gone on deaf ears with the government. Air transportation should be treated as essential infrastructure, similar to rail, energy, and communications. To foster a healthy aviation industry that boosts GDP growth and increases Canada's connectivity while lowering fares for Canadians, we must address these policy framework issues in a transparent and collaborative manner. International Air Transport Association (IATA) and National Airlines Council of Canada | Conseil national des lignes aériennes du Canada look forward to engaging Transport Canada - Transports Canada and the key government officials at the upcoming Aviation Day in Ottawa on October 29 to work collaboratively moving forward to make air transport more competitive in Canada. More details here 👉 https://lnkd.in/eeJh3h9s
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Isn't It Ironic: Canadian Aviation Over-Regulated Here's an "All Canadian" post on aviation. The Canadian Chamber of Commerce's Statement on proposed amendments to the Air Passenger Protection Regulations (APPRs) the Government of Canada has tabled is spot on. <<Cue Canadian musician Alanis Morissette's single from 1996 "Ironic">>. The International Civil Aviation Organization, an Agency of the United Nations, held a conference in Montreal Canada in 1999 (MC99) resulting in establishing airline liabilities for air passengers in the event of delays. These guidelines cover all airlines of signatory nations to the United Nations (for the record; 193 of 196 countries). Now, here we are some 25 years later, and Canada feels the need to add more legislation to protect air passengers from villains, those pirates of the air ... airlines. The cost associated with airline business, which the Government of Canada has established through its "user pay" system, coupled with fees and taxes, including taxes on taxes, makes air travel more expensive, less convenient, and eliminates smaller markets all together. We do not need more regulation in Canadian aviation, for new market entrants and existing market players. There must be a reduction in complexity, regulation and thereby cost to participate in the Canadian Air Transportation System. For international players to contemplate Canada as a destination, total financial cost and potential liability are major considerations and bluntly, Canada is very expensive; so expensive that US Low Cost Carriers do not venture here because of the potential cost. Indeed, WestJet CEO Alexis von Hoensbroech recently testified to a Senate Committee, one flight deemed liable for APPR can wipe out a year's profit. With that liability there is good reason for airlines to treat the Canadian market with caution, and good reason for limited competition in this market. Airlines have no choice but to pass on the cost of the potential risk into the price of a ticket, making air travel out of reach for more, and most, Canadians. Isn't it ironic, the UN's ICAO liabilities were agreed, adopted and delivered in 1999, in Canada at Montreal, and yet it is Canada going beyond MC99, out of step with the other 192 signatory nations to the UN, by proposing further "protections" for air travellers making the industry in Canada untenable, bankrupting airlines, eliminating service to smaller markets and prohibiting competition.
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Montreal Convention Limits of Liability to Rise by 17.9%. Formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, the Montreal Convention of 1999 establishes for airlines the liability limits for death, bodily injury, delays, baggage, and cargo issues. Last revised in 2019, these liability limits are reviewed every five years by ICAO and are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. ICAO has notified 140 Member States to the Convention that liability limits will increase on 28 December 2024 by 17.9%. Read more about the increase in our latest Client Alert from John Maggio. https://lnkd.in/eatvGrCT #aviationlaw #aviation #MontrealConvention #ICAO
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The Montreal Convention limits of liability increases from 22 to 26 Special Drawing Rights (= ca.35 USD) per kilo for lost or delayed #cargo as of December 28, a significant increase (17.9%) as emphasized in this post. IATA has adapted its Cargo Resolution 600b (conditions of contract of the air waybill) accordingly.
Montreal Convention Limits of Liability to Rise by 17.9%. Formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, the Montreal Convention of 1999 establishes for airlines the liability limits for death, bodily injury, delays, baggage, and cargo issues. Last revised in 2019, these liability limits are reviewed every five years by ICAO and are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. ICAO has notified 140 Member States to the Convention that liability limits will increase on 28 December 2024 by 17.9%. Read more about the increase in our latest Client Alert from John Maggio. https://lnkd.in/eatvGrCT #aviationlaw #aviation #MontrealConvention #ICAO
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Canada Proposes Air Passenger Protection Regulations Changes: The proposed amendments eliminate grey zones and ambiguity about when passengers are owed compensation, which will ensure quicker resolutions for passengers. SOURCE: Canada Proposes Air Passenger Protection Regulations Changes BY: eTurboNews | eTN #travelnews
Canada Proposes Air Passenger Protection Regulations Changes
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#MontrealConvention ... International air travel liability limits set to increase, enhancing customer compensation #aviation ALIMLIÖNAL Avukatlık ve Arabuluculuk Bürosu below for details 👇
✈️ Important Update✈️ #Aviation #MontrealConvention Montreal Convention 1999 Limits Set to Increase on December 28, 2024 On 28 December 2024, travellers will benefit from increased compensation limits for international flights, as announced by the International Civil Aviation Organization (ICAO). This adjustment to the Montreal Convention liability limits will enhance customer compensation for cases of death, injury, delays, baggage, and cargo issues. Ozgun Onal Seçil Alımlı Önal
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The Montreal Convention represents an important step in protecting passenger rights and enhancing fairness in the international air transport system The Montreal Convention 1999 is an international treaty concerning the liability of airlines for damages occurring to passengers and goods during international air travel. The Convention aims to modernize and harmonize the rules related to airline liability and compensation for damages, serving as an amendment to the 1929 Warsaw Convention and its protocols. Key points of the Montreal Convention include: 1. Airline Liability: The Convention imposes stricter liability on airlines for damages suffered by passengers and goods, and specifies maximum compensation limits in cases of death or injury. 2. Material Damages: It provides compensation for material damages to goods transported by air and outlines the airline’s responsibility in this regard. 3. Jurisdiction: The Convention sets rules for determining the courts where claims can be filed. 4. Proof of Damages: It clarifies how to prove damages and determine the amount of compensation.
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Israel's smaller airlines, Israir and Arkia, are in preliminary talks to launch flights to North America as flagship carrier El Al maintains a monopoly on the route. This has led to a fierce shortage of seats and exorbitant airfares. - by Frederic Eger/TOI - Photo: An Israir flight takes off from Ben Gurion International Airport, outside of Tel Aviv, August 25, 2024. (Yossi Aloni/Flash90) - The Transportation Ministry is working on this matter to ensure that El Al will not be the sole carrier flying to North America. Since the October 7 onslaught on southern Israeli communities last year, foreign airlines have repeatedly canceled and resumed their flights to and from Israel. In recent months, US airlines have completely stopped flying to Israel amid heightened fighting between Israel and Hezbollah in southern Lebanon, and as tensions rise in the Middle East. This has left El Al as the only airline flying from Tel Aviv on direct routes to North America in recent months, only canceling flights when Ben Gurion Airport or Israeli airspace closes. The lack of competition has led to a severe shortage of seat availability and driving up ticket prices. Israir and Arkia still need to overcome operational challenges to make the transatlantic route feasible. The launch of flights to the US hinges on the need to fulfill certain conditions by the Civil Aviation Authority and obtain regulatory approvals from US aviation authorities. To operate the long-haul service to the US, they would also need to find an operator or a partner to wet-lease wide-body aircraft and flight crews, which they currently don't have. One of the main obstacles for foreign carriers to resume their services to Israel is that their crews refuse to stay overnight in Tel Aviv due to the heightened security situation. Under the leadership of Transportation Minister Miri Regev, the Civil Aviation Authority, and assistance of the Foreign Affairs, they are working to obtain approvals from the US federal government for the flights and are promoting additional initiatives to increase the number of flights to North America. A group of 15 major foreign carriers has submitted a request to the Knesset Economic Affairs Committee to make temporary amendments to the 2012 Aviation Services Law that governs current compensation regulation for canceled flights. Many foreign airlines have been grappling with a multitude of class actions and small claims from passengers who are suing for their entitlement to compensation as stipulated in the law.
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Air Canada (TSX:AC) will institute changes to its Basic and Comfort fares in January to better align with other Canadian carriers. #airlines #airtravel #stocks #stockstowatch #investing
Air Canada to cut amenities for cheapest fare in 2025
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Our next video explores the most significant top airline bankruptcies in history, covering the factors that led to the financial downfall of once-dominant carriers, caused by economic downturns, mismanagement, and competitive pressures. #aviation #bankruptcies #travel
Top Airline Bankruptcies: The Biggest Failures In Aviation History | Infinite Altitudes
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