Air Carriers’ Liability

Australia’s carriers’ liability arrangements are outlined in the Civil Aviation (Carriers’ Liability) Act 1959.

The Act gives the force of law to a number of passenger liability frameworks, including those arising under the ‘Warsaw System’, the Montreal Convention, and a separate system of liability for domestic travel.

The liability framework for domestic passenger travel is created under Part IV of the Act, and is complemented by state government legislation to create a national uniform scheme.

Arrangements for compulsory passenger insurance are outlined in Part IVA of the Act.

Liability arrangements for third party (surface) victims are outlined in the Damage by Aircraft Act 1999. 

Review of Carriers’ Liability and Insurance

As part of the Government’s Aviation Green Paper released on 2 December 2008, the Minister announced a comprehensive review of Australias carriers liability and insurance arrangements. 

A discussion paper was released containing 30 preliminary findings which the public was invited to comment on. 

A copy of the paper is available here [PDF: 1224 KB].

Enquiries in relation to the discussion paper should be directed to:

Aidan Bruford
Trade and Aviation Markets Policy Section
Aviation Industry Policy Branch
The Department of Infrastructure and Transport
GPO Box 594 Canberra ACT 2601

Email: liabilityandinsurancereview@infrastructure.gov.au
Telephone: 02 6274 7064

Montreal Convention

The 1999 Montreal Convention came into effect for Australia on 24 January 2009.

The Montreal Convention is an international agreement which will update laws relating to carriers’ liability. It is designed to replace the complicated and outdated ‘Warsaw System’ of carriers’ liability.

The Montreal Convention is implemented in Australia by the Civil Aviation Legislation Amendment (1999 Montreal Convention and Other Measures) Act 2008. This legislation followed extensive consultation with interested industries.

• A copy of the Bill and the Explanatory Memorandum can be found on the Parliament of Australia website.
• Minister Albanese media release

The Department released a discussion paper in September 2005 regarding the implementation of the 1999 Montreal Convention on carriers’ liability. The discussion paper also proposed minor administrative changes for the system of international airline licenses, the mandatory requirements for carriers’ liability insurance and the designation of international airports. Some of these changes are facilitated by the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Act 2008.

A copy of the discussion paper is available here, along with an earlier discussion paper canvassing issues in relation to the Montreal Convention, and a copy of the Montreal Convention itself:

• Montreal Convention and related administrative amendments—2005 Discussion Paper [DOC: 136 KB]
• Reform of Carriers Liability—The Montreal Convention—2001 Discussion Paper [PDF: 176 KB]
• The Montreal Convention [PDF: 46 KB]

Warsaw Convention

The Warsaw Convention was signed in 1929 and deals with the rules of liability governing international carriage of persons, baggage and cargo by aircraft. The Convention has been amended on a piecemeal basis over succeeding years by a number of protocols and conventions.

The Warsaw Conventions and the various amending instruments to which Australia is a party are given the force of law in Australia by the Civil Aviation (Carriers’ Liability) Act 1959.