The Montreal Convention governs the rights and liabilities of
parties for claims arising during international carriage between
State Parties. Specifically, Articles 21 and 22 of the Convention
set forth limits of liability for claims relating to passenger
injury, delay, baggage and cargo. Pursuant to Article 24, the
International Civil Aviation Organization (ICAO) is required to
review these limits every five years to compensate for inflation
that has occurred since the treaty took effect in 2004. The limits
were last increased in 2009. In July, ICAO proposed a 13.9%
increase and the new limits took effect on December 28,
2019.
Below is a chart setting forth in Special Drawing Rights
(SDRs)1 the original limits, the
first increase in 2009, and the new 2019 amounts:2