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Qantas incident shows urgent need to end compensation treaty delay
FOR IMMEDIATE RELEASE: 1 August 2008
CONTACT: Peter Carter on 3210 3409 or 0422 445 599
The near catastrophe on Qantas flight 30 last week highlights the urgent need to update Australia’s international passenger compensation regime, an aviation law specialist said today.
Peter Carter, of Carter Capner Law in Brisbane, said the former Federal Government had failed to ratify a 1999 international treaty that raises passenger compensation limits that were last set 12 years ago.
Qantas passenger claims are still subject to a maximum $500,000 limit because the Federal government has failed to act.
"The international community, apart from Australia, decided long ago that the $500,000 liability limit was unfair and inadequate," said Mr Carter.
The international treaty, the Montreal Convention of 1999, removes limits on the amount of compensation payable by airlines in certain circumstances.
Minister for Transport and Regional Services Anthony Albanese introduced a Bill to Federal Parliament in March to rectify the situation.
"But failure to have the Bill passed into law means that injury and death compensation limits last reviewed in 1996 still apply," Mr Carter said.
"There is no doubt that Australian ticketed airline passengers and their families will have greater protection under the treaty which will apply when the law eventually comes into force. Given last week’s incident there should now be greater urgency to fix the gap."
"Former Minister Mark Vaile withheld ratification despite early departmental enthusiasm for the treaty provisions."
"His failure may have been associated with the Howard government's wider concerns with injury compensation. In 2002 Mr Howard established a 'committee of eminent persons' to design ways to limit compensation payments that injury victims were legally entitled to."
The Montreal Convention replaces the Warsaw Convention and associated protocols and applies solely to international air travel.
It has been ratified by most western nations, including the US in 2005.
"Under the Bill, the airline is absolutely liable for death or injuries up to an amount to be set by regulation which I expect to be $500,000 but will also be liable for any proven passenger losses above that sum, unless the airline proves the accident wasn’t its fault."
The convention also updates liability limits for baggage, cargo and delay and allows these limits to be reviewed every 5 years to allow for inflation.
- Peter Carter
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