CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL CARRIAGE BY AIR, MONTREAL 1999

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CONVENTION FOR THE UNIFICATION OF CERTAIN RULES
FOR INTERNATIONAL CARRIAGE BY AIR, MONTREAL 1999

• MS N MSOMI
• 3 MAY 2006

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CONTENTS

• PURPOSE
• BACKGROUND
• PROBLEM STATEMENT
• MONTREAL CONVENTION
• LIABILITY FOR PAYMENTS
• CONSULTATION
• CONCLUSION RECOMMENDATION

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PURPOSE

• To request for South Africa to accede to the
  Convention for the Unification of Certain Rules
  for International Carriage by Air, 1999.
• This Convention is also known as the Montreal
  Convention, 1999

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BACKGROUND

• The Carriage by Air Act, (Act no.17 of (1946),
  was promulgated to give effect to the Convention
  for the Unification of Certain Rules Relating to
  International Carriage by Air signed at Warsaw on
  12 October 1929
• This Convention is also known as the Warsaw
  Convention, 1929

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BACKGROUND (Continued)
Hague Protocol of 1955
Warsaw Convention as amended Warsaw System
Guatemala City Protocol of 1971
Montreal Protocols 1 4 of 1975
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PROBLEM STATEMENT
THE WARSAW CONVENTION THE MONTREAL CONVENTION
The high mobility of passengers and the globalization of the Air transport Industry has resulted in a high level of complexity and fragmentation of the Warsaw System Modernized the 70 yr old system into one legal instrument that provides adequate levels of compensation for those involved in air accidents.
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PROBLEM STATEMENT (continued)
THE WARSAW CONVENTION THE MONTREAL CONVENTION
Compensation set at very low levels Sets reasonable levels of compensation and introduces concept of strict liability and unlimited liability in case of proven negligence of airline To be reviewed at 5-year intervals
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MONTREAL CONVENTION, 1999
Warsaw Convention Montreal Convention
The Warsaw convention had set a limit of 125, 000 gold francs approximately (US 8,300) in case of death or injury to passengers Introduces a two tier system First tier includes strict liability up to 100 000 Special Drawings Rights (SDR) ( approximately US 135 000 irrespective of a carriers fault Second tier is based on presumption of fault of a carrier and has no limit of liability
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MONTREAL CONVENTION, 1999 (continued)
Warsaw Convention Montreal Convention
Complicated, time consuming system for recovery of losses due to fragmented legal instruments of the Warsaw System Facilitates recovery of damages without the need for lengthy litigation and simplification and modernization or documentation related to passengers, baggage and cargo
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MONTREAL CONVENTION, 1999 (continued)
Warsaw Convention Montreal Convention
No provision for passengers to lodge claims for losses in their country of permanent residence An aggrieved party has an option of bringing a claim in their country of permanent residence (subject to certain limitations) before the court of the domicile of the carrier or its principal place of business or before the court at the place of destination
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LIABILITY FOR PAYMENTS

• In terms of Article 50 of the Montreal
  Convention, air carriers are required to maintain
  adequate insurance covering their liability
  under this Convention.
• Government is, therefore, not liable for any
  damages that might accrue as a result of any
  international air accidents.
• Financial impact on SA airlines will be limited
  as most airlines are already insured in
  accordance with the Montreal Convention due to
  the requirements of States that have already
  adopted the Convention

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CONSULTATION

• Chief State Law Advisors and Aviation Industry
  were consulted prior to the signing of Montreal
  Convention on 28 May 1999.
• Workgroup and Steering Committee responsible for
  the Aviation Policy Review Project considered
  implications of the Montreal Convention and
  recommended its ratification as a priority.
  Organizations consulted during policy review
  include
• Government Departments / Agencies DTI, DEAT,
  DPE, DFA, CAA, ACSA, ATNS, Competition Commission
• Industry AASA, CAASA, Aeroclub, SAA, Comair,
  Interair, Insurance Industry

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CONSULTATION (continued)

• The Chief State Law Advisers indicated that
  provisions of the Convention are compatible with
  SAs international obligations.
• The Carriage by Air Act Amendment Bill, which
  incorporates the Convention as a schedule, was
  published for public comments in the Government
  Gazette No 26602 dated July 2004. Members of the
  public were invited to submit written comments by
  no later than 31 August 2004. Comments were
  received from Comair, and subsequently clarified.

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CONCLUSION AND RECOMMENDATION

• The Montreal Convention seeks to consolidate and
  modernise the rules for international carriage by
  air by replacing the outdated Warsaw System.
• It is therefore recommended that the Montreal
  Convention be ratified by Parliament in
  accordance with Section 231(2) of the
  Constitution.