This Order, effective February 7th, 2025, updates the liability limits for air carriers under the Montreal Convention.
It adopts the revised limits certified by the International Civil Aviation Organization (ICAO) following their five-yearly review process, replacing the 2021 limits.
The revised figures, expressed in Special Drawing Rights (SDRs), are detailed within the Order, and the Order applies across England, Wales, Scotland, and Northern Ireland.
Arguments For
- Intended benefits: Aligns UK law with international standards set by ICAO, ensuring consistency and fairness in compensating passengers for loss or damage during air travel.
- Evidence cited: The Order cites the Montreal Convention and ICAO's five-yearly review process under Article 24, which determines liability limits based on inflation.
- Implementation methods: The Order directly updates the limits of liability within UK law, requiring no further legislative action.
- Legal/historical basis: The Order is made under the power granted by section 2(1A) of the Carriage by Air Act 1961, reflecting the UK's commitment to adhering to international air transport agreements.
Arguments Against
- Potential impacts: While the changes are largely administrative, there's a potential for minor discrepancies or unintended consequences as liability limits are adjusted.
- Implementation challenges: Minimal implementation challenges are anticipated, however, there might be a need for airlines to update their internal systems to reflect the revised limits.
- Alternative approaches: There are no viable alternative approaches to maintaining alignment with the international standards set by ICAO.
- Unintended effects: No significant unintended effects are anticipated, given the purely administrative nature of raising the stated liability limits.
Citation, commencement and extent 1. This Order may be cited as the Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2025 and comes into force on 7th February 2025. 2. This Order extends to England and Wales, Scotland and Northern Ireland.
This section establishes the Order's official title as the 'Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2025,' setting its effective date as February 7th, 2025.
It also confirms the Order's applicability across the United Kingdom.
Superseding of the Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2021 3. 2. This Order supersedes the Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2021.
The Order explicitly supersedes its predecessor, the 2021 Order which set the previous limits of liability.
This ensures that only the current updated limits are legally valid.
Certification of the revision of limits of liability under the Montreal Convention 4. 3. The revised limits of liability established under Articles 21 and 22 of the Montreal Convention are as certified in the third column of the table. | Montreal Convention | Old limit (Special Drawing Rights) | Revised limit (Special Drawing Rights) | |-------------------------|--------------------------------------|------------------------------------------| | Article 21 | 128,821 | 151,880 | | Article 22, paragraph 1 | 5,346 | 6,303 | | Article 22, paragraph 2 | 1,288 | 1,519 | | Article 22, paragraph 3 | 22 | 26 |
This section formally certifies the new liability limits.
The table provides the updated figures in Special Drawing Rights (SDRs) for Articles 21 and 22 of the Montreal Convention, replacing the previous limits.