The Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2021

EXPLANATORY NOTE

(This note is not part of the Order)

This Order certifies the revised limits of liability established under the Montreal Convention 1999 (the Convention). The Convention can be viewed online at https://treaties.fco.gov.uk/awweb/pdfopener?md=1&did=69779 or obtained in hard copy from the Aviation Consumer Policy Team, Department for Transport, 4th Floor, Great Minster House, 33 Horseferry Road, London SW1P 4DR.

The revised limits of liability under the Convention can be viewed online at https://www.icao.int/secretariat/legal/Pages/2019_Revised_Limits_of_Liability_Under_the_Montreal_Convention_1999.aspx or obtained in hard copy from the Aviation Consumer Policy Team, Department for Transport, 4th Floor, Great Minster House, 33 Horseferry Road, London SW1P 4DR.

The revision of the limits was accomplished under Article 24 (review of limits) of the Convention. Article 24 provides that the limits of liability are to be reviewed by the International Civil Aviation Organisation (ICAO) at five-yearly intervals by reference to an inflation factor which corresponds to the accumulated rate of inflation since the previous revision. In the absence of disapproval by a majority of State Parties (to the Convention) the revised limits become effective six months after their notification to State Parties by ICAO.

The limits of liability were previously revised in 2009 and those rates were certified in the UK by way of the Carriage by Air (Revision of Limits of Liability under the Montreal Convention) Order 2009 (S.I. 2009/3018), which this Order supersedes.

The limits of liability are expressed in Special Drawing Rights (SDR), which are a unit of account established by the International Monetary Fund (IMF). The value of the SDR is based on a basket of currencies, currently consisting of the Chinese renminbi, euro, Japanese yen, pound sterling and U.S. dollar. Further information on SDR from the IMF can be found at https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR.

A full impact assessment has not been produced for this instrument as it is not expected to have a significant impact on the private, public or voluntary sectors.