1. CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL CARRIAGE BY AIR, MONTREAL 1999
MS N MSOMI
3 MAY 2006

2. CONTENTS PURPOSE BACKGROUND PROBLEM STATEMENT MONTREAL CONVENTION
LIABILITY FOR PAYMENTS
CONSULTATION
CONCLUSION & RECOMMENDATION

3. 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

4. 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

5. BACKGROUND (Continued)
Hague Protocol of 1955
Warsaw Convention
as amended =
Warsaw System
Guatemala City Protocol of 1971
Montreal Protocols 1 – 4 of 1975

6. 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.

7. 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

8. 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 Special Drawings Rights (SDR) ( approximately US $ irrespective of a carrier’s fault
Second tier is based on presumption of fault of a carrier and has no limit of liability

9. 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

10. 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

11. 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

12. 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

13. CONSULTATION (continued)
The Chief State Law Advisers indicated that provisions of the Convention are compatible with SA’s 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 dated July Members of the public were invited to submit written comments by no later than 31 August Comments were received from Comair, and subsequently clarified.

14. 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.