Montreal Convention – MC 99

 Ratified August 2015; effective 2016

 Philippines is a member of ICAO
 Modified the liability of air carrier.

The Montreal Convention established a two-tier liability for death or bodily injury to a
passenger
First tier

 It is on the basis of a strict liability where an airline carrier shall be made liable for damage
sustained in case of death or bodily injury of a passenger on the condition that the accident
which caused the death or injury took place on board the aircraft or in the course of any of
the operations of embarking or disembarking.
 The carrier cannot limit or exclude its liability provided the damages sustained do not
exceed 113,100 Special Drawing Rights (SDR).
 An SDR is a type of foreign exchange reserve asset created by the International Monetary
Fund.
 Its value is based on an artificial basket of currencies consisting of the US dollar, the euro,
the pound, and the Japanese yen.
 The liability limits are reviewed every 5 years.
 In this regard, the carrier may be held liable even if it is not negligent or at fault.
 The carrier is thus presumptively liable up to the amount of 113,100 SDRs.
 The carrier’s liability may be reduced or exonerated only in case where damage was caused
by contributory or sole negligence of the passenger or person claiming compensation.

Second tier liability

 For all damages higher than 113,100 SDR ($170,000), the carrier shall be liable unless it can
show that the damage was not due to its negligence or wrongful act or omission, or that the
damage was solely due to the negligence or wrongful act or omission of a third party.
 Otherwise stated, for those claims above 113,100 SDRs, the carrier shall not be liable under
this tier only if it shall prove that it was not negligent or at fault.
 The full defense that the carrier or its agents has taken all reasonable measures to avoid
damage is not already availing under the Montreal Convention.

Air passenger bill of rights

 Deemed written in every airline contract.

 Airline passengers have the right to be compensated upon loss, death, injury in connection
with the relevant convention.
 1. An airline passenger whose checked-in baggage was offloaded from the flight must be
informed by the airline and assured that the baggage will be carried on the next flight with
available space.
2. An airline can overbook a flight as long as the passengers who are bumped off volunteer for
it.
3. All airlines must outline their limitations and restrictions in both English and Filipino.
4. A passenger who arrives within the designated area at least an hour before the flight’s
schedule of departure will not be considered late and will be checked in within the deadline
by the carrier.
5. Passengers with cancelled flights should be notified beforehand via public announcement or
text message.
6. In case of delayed departures, passengers should be provided with free food and drinks,
internet access, phone use, and in extreme circumstances, hotel lodging until the flight
departs. A flight is considered cancelled if it is delayed 6 hours or more after the departure
time.

Contributory negligence

 It will reduce or exonerate carrier’s liability.

 Sole liability of passenger may exonerate carrier’s liability.

Destruction, loss, damage, or delay in carrying baggage

 Carrier shall be liable as long as the destruction, loss, damage, or delay took place on board
the aircraft or during any period within which the checked baggage was under the carrier’s
custody.
 Carrier may not be liable if and to the extent that the damage resulted from the inherent
defect, quality, or vice of the baggage.
 Carrier’s liability is up to 1,131 SDR for each passenger or approximately $70 per kilogram
luggage.

Unchecked baggage

 The carrier shall be liable if the damage resulted from its faults or that of its agents.

Prescription on claim on baggage

 From 7 days of receipt of checked-in baggage.

 In case of delay of delivery, the complaint must be made at the latest within 21 days from
the date of receipt of the baggage.
 No claim can be filed after the lapse of the 21-day period. XPN: Fraud.
 MC-99 allows filing of an action of a State party wherein the passenger is a citizen.
PAL v. Savillo

 Warsaw Convention – 2-year prescriptive period.

 Claim recovered under WC cannot be recovered locally if 2 years have lapsed.

US v. Uy

 Two causes of action: damage to baggage (Warsaw) and humiliation (based on Torts; Civil
Code) – 4-year prescriptive period.

Bumping-off

 Civil Code
 Prescriptive period is not 2 years

Reconfirming the reservation

 Not covered by Warsaw

 Quasi-delict

KLM Royal Dutch Airlines v. Court of Appeals

 Different carriers but their contract is with the Philippine Travel Bureau.