The Montreal Convention 1999:
An Overview
The Montreal Convention, 1999 is an international treaty that standardizes rules for airline liability in cases
of passenger injury, baggage or cargo loss, and flight delays during international travel. It ensures fair
compensation and legal uniformity across member countries. It is the successor of Warsaw Convention
1926.
It contains a total of 57 Articles, divided into 7 Chapters.
Historical Background
The Montreal Convention, 1999, was adopted as a successor and modernized version of the Warsaw Convention
of 1929. It was developed to unify and modernize the patchwork of treaties under the Warsaw System, which
had become outdated and complex due to multiple supplementary protocols (like The Hague Protocol 1955,
Montreal Protocols of 1975 etc.). The Montreal Convention (MC99) was signed on May 28, 1999, in Montreal,
Canada.
It was adopted to address the limitations and inefficiencies of the earlier Warsaw Convention system, which
governed international air carrier liability. The following reasons necessitated a new, unified framework:
1. Fragmented Legal Framework (Warsaw System Complexity): Over time, the Warsaw Convention (1929)
was supplemented by multiple instruments:
• The Hague Protocol (1955)
• Guadalajara Convention (1961)
• Montreal Protocols (1975)
2. Inadequate Compensation Limits: Warsaw convention imposed low limits of liability.
3. Need for Strict and Clear Liability Rules: claimants had to prove airline negligence to receive
compensation beyond fixed limits. The industry needed a fairer and more passenger-friendly regime.
4. Technological Advancements: electronic ticketing, digital records, or modern cargo documentation.
5. Encouragement from ICAO and IATA: Both the International Civil Aviation Organization (ICAO) and the
International Air Transport Association (IATA) pushed for a modernized, unified regime.
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Comparison between Warsaw and Montreal
Convention
Aspect Warsaw Convention (1929) Montreal Convention (1999)
Regulated liability of air carriers in international Modernized and unified rules for international air carrier
Purpose
travel liability
Multiple treaties and protocols (Hague,
Structure Single consolidated convention
Guadalajara, Montreal Protocols)
Low fixed limits (e.g., ~USD 8,300 for Higher limits (151,000 SDR strict liability; unlimited if
Liability Limits
death/injury pre-updates) fault proven)
Passenger must prove fault for compensation No fault needed up to threshold; fault required only
Fault Requirement
beyond limit beyond that
Two-tier: strict liability + fault-based for additional
Type of Liability Regime Single-tier, fault-based
compensation
Passenger Rights Limited rights; burdensome legal process Strengthened rights; simplified claims process
Electronic Documentation Not recognized (paper tickets mandatory) Recognizes e-tickets and digital records
Applies where both countries are parties to the Applies where both countries are parties to Montreal
Applicability
Warsaw system Convention
Fragmented due to various instruments and
Legal Uniformity Greater uniformity and predictability in application
interpretations
Objectives
Its primary objectives include establishing uniform and predictable rules concerning the liability of international air carriers
for:
• Death or injury to passengers
• Damage to or loss of baggage
• Damage to or loss of cargo
• Delays in the carriage of passengers, baggage, and cargo
Other objectives:
1. Unification of International Aviation Laws
2. Modernization of Liability Rules
3. Fair Compensation for Passengers
4. Legal Certainty and Predictability
5. Encouragement of Dispute Settlement
The Convention also sought to facilitate the use of electronic documentation, such as e-tickets and electronic air waybills,
and streamline claims processes, thereby enhancing efficiency in global air transport.
Scope of Application
The Montreal Convention applies to specific types of international carriage
by air performed by aircraft for reward or gratuitously by an air transport
undertaking. Its scope is defined under Article 1 of the Convention.
1. International Carriage
2. Types of Carriage Covered: Cargo, Baggage, Passenger
3. Carrier by Air: Applies to commercial carriers performing transport for
reward (fare-paying passengers) and also to gratuitous carriage by an air transport
operator.
4. Applicability to State Parties: Only applies if both the states are parties to
convention.
Exceptions:
• Domestic flights with no agreed stop in another country.
• Carriage performed by non-air transport means (e.g., road or rail, unless directly related to air transport).
• Military and government aircraft not used for commercial purposes.
Ratification Status
• As of July 2025, the Montreal Convention has been ratified by 141 of the 191 ICAO member states,
representing approximately 73% of the global aviation community. Organizations like IATA and
ICAO actively advocate for universal ratification to achieve a fully unified global liability regime.
• Notable recent ratifications include Bangladesh and Nicaragua in 2022 and Cambodia and
Mauritius in 2025, demonstrating ongoing momentum towards wider adoption. However, a
patchwork of liability regimes persists in regions where the Convention has not been ratified,
leading to legal complexities for international air travel.
Key Provisions: Liability Framework
Two-Tier Liability ( Article 17 ) Baggage Liability (Article 17)
Tier 1- Strict Liability
Here the airline is automatically liable up to Carrier is liable for loss, destruction, damage
151,000 SDR equivalent to $214,420 USD per limited up to 1,519 SDR per passenger
passenger.
Tier 2- Fault Based Liability
For damages exceeding 151,000 SDR
Cargo Liability ( Article 18) Delay (Article 19)
Carrier is liable for loss or damage during the Carrier is liable for damage due to delay up to
air carriage period. Liability is limited to 26 6303 SDR per passenger and the same SDR
SDR per kg. limits in case of cargo and baggage.
Jurisdiction and Claims
Article 33: Five possible forums Article 35: Time-Bar
1. Carrier’s domicile Two‑year limitation period from the
2. Carrier’s principal place of business date of arrival at destination, the
3. Place where the contract was made (ticket date the aircraft ought to have
issued) arrived, or the date carriage stopped.
4. Place of destination
5. Passenger’s principal and permanent residence
Article 34: Arbitration
Permitted for cargo claims if expressly agreed; not available for passenger personal‑injury claims.
Compensation Limits and Updates
DAMAGE LIMIT LIMIT (SDR)
These liability limits are subject to review every five years
TYPE Old Updated as per 2025
by the International Civil Aviation Organization (ICAO) to
Cargo Loss ( per 22 SDR 26 SDR
kg) account for inflation and economic changes. New limits
Death/ Injury 113,100 SDR 151,000 SDR effective Dec 28, 2024 and are reviewed every 5 years
ensuring the Convention remains relevant and fair in its
Passenger Delay 4,694 SDR 6,300 SDR
compensation provisions.
Baggage Loss/ 1,288 SDR 1,519 SDR
Delay
SDR (Special Drawing Rights) is an international reserve asset created by the International Monetary Fund (IMF), used as a
unit of account for the Convention.
Features
1. Advance Compensation for Death or Injury
In the event of passenger death or serious injury, the carrier is obligated to make an interim advance payment, usually within 15
days of identification of the victim.
2. Recognition of Electronic Documentation
The Convention formally recognizes the use of electronic contracts of carriage, such as:
• e-tickets for passengers
• electronic air waybills (e-AWB) for cargo
3.Transparency in Passenger Rights
Airlines are required to inform passengers of their rights and the applicable compensation under the Convention. This empowers
travelers to understand their legal remedies in case of disruption.
4. Broader Jurisdictional Access
Passengers are allowed to file claims in five different jurisdictions, including:
• The carrier’s domicile
• Its principal place of business
• The place where the contract was made
• The destination
• The passenger’s permanent residence, provided the carrier operates services there
This significantly improves access to justice and reduces procedural barriers for passengers.
Application in INDIA
• India is a contracting party to the Montreal Convention, 1999. It formally acceded to the Convention on
June 30, 2009, thereby aligning its international aviation liability framework with global standards.
Applicability to International Flights Jurisdiction Under Indian Law
The Convention applies to:
Indian courts have the jurisdiction to entertain claims
• All international flights to or from India, including under Article 33 of the Convention when:
those involving Indian or foreign carriers. •India is the place of destination, departure, or the
passenger's residence, and
•Connecting domestic flights, if they form part of an
international itinerary with an agreed stopping place •The carrier operates scheduled services to/from India.
outside India. This ensures that Indian passengers and cargo owners can
initiate legal proceedings domestically without needing to
•Carriage of passengers, baggage, and cargo under a litigate abroad.
single contract that involves at least one international leg.
The Convention’s principles have been integrated with India's
civil aviation regulatory framework.
The Directorate General of Civil Aviation (DGCA) issues
notifications and circulars that align carrier obligations with
MC99 standards.
Benefits of the Montreal Challenges and
Convention criticism
• Uniform Legal Framework • Compensation Limits May Be
Inadequate
• Improved Passenger Protection
• Difficult Burden of Proof
• Simplified Compensation
• Not Universally Adopted
• Expanded Jurisdiction Options
• No Coverage for
Domestic Flights
• Encourages Airline Accountability
CONCLUSION
• The Montreal Convention, 1999 has emerged as a modern, globally accepted legal
framework that balances passenger protection and airline accountability in
international air travel.
• With over 141 countries as parties and regular updates to compensation limits (latest
effective Dec 28, 2024), the Convention remains responsive to evolving economic
and legal needs.
• Its adoption in India has strengthened passenger rights and ensured alignment with
global standards, while features like strict liability, advance compensation, and e-
ticket recognition have simplified dispute resolution.
• Though some challenges remain—like varied judicial interpretations and incomplete
global ratification—the Convention continues to play a pivotal role in ensuring fair,
efficient, and uniform air carrier liability worldwide.
