Air passengers could soon receive higher compensation for flight delays, lost luggage, and personal injuries on international flights, thanks to updated compensation limits set by the International Civil Aviation Organization (ICAO) under the Montreal Convention. These changes, effective December 28, 2024, mark a significant improvement for air travellers and raise questions about the need for similar updates to EU261 regulations, which have remained unchanged for two decades.
BOSTON, Oct. 23, 2024 /PRNewswire-PRWeb/ -- Air passengers could soon receive higher compensation for flight delays, lost luggage, and personal injuries on international flights, thanks to updated compensation limits set by the International Civil Aviation Organisation (ICAO) under the Montreal Convention.
These changes, effective December 28, 2024, mark a significant improvement for air travellers and raise questions about the need for similar updates to EU261 regulations, which have remained unchanged for two decades.
The Montreal Convention (MC99), an international treaty that went into effect in 2003, was designed to protect air passengers on international flights. It sets compensation limits for issues such as baggage mishandling, personal injury, cargo, and flight delays or cancellations.
Instead of using fixed currency amounts, the Montreal Convention utilizes Special Drawing Rights (SDRs), an international reserve asset maintained by the International Monetary Fund (IMF), which is valued based on a basket of major global currencies. As of October 2024, 1 SDR equals approximately $1.37 USD.
The Montreal Convention adjusts its liability limits every five years to account for inflation, unlike EU261, which has not been updated since 2004.
New Compensation Limits
Under the new rules, passengers will be entitled to increased compensation, as outlined below:
- Death or injury: The maximum limit rises to 151,880 SDRs (approximately $202,500 USD).
- Flight delays: The compensation limit increases to 6,303 SDRs (around $8,400 USD).
- Lost, damaged, or delayed baggage: Passengers could claim up to 1,519 SDRs (around $2,000 USD).
- Lost or damaged cargo: The limit increases to 26 SDRs per kilogram (approximately $35 USD per kg).
With these new limits, air passengers will receive higher compensation for flight disruptions and baggage issues than ever before. These changes ensure that passengers are adequately compensated for the increasing costs associated with delays, lost luggage, and personal injury on international flights.
The Need for EU261 to Follow Suit
While these changes to the Montreal Convention do not directly impact EU261, they highlight the stagnation of compensation limits in the European Union. EU261, which regulates passenger rights for flights within the EU, has not seen its compensation rates adjusted for inflation since its introduction in 2004. Passengers still receive €250 to €600 for delays—amounts that have significantly lost value over the past 20 years.
Anton Radchenko, CEO of AirAdvisor, argues that EU261 should adopt SDR-based compensation and undergo regular adjustments, just like the Montreal Convention.
"EU261 compensation has been stagnant for two decades, and inflation has eroded its value. If EU regulators don't adjust these rates, they will fail to incentivize airlines or provide meaningful compensation to passengers. Right now, passengers may not even bother claiming compensation for amounts as low as €250," says Radchenko.
How Compensation Rates Have Changed Since 2003
The Montreal Convention has made regular adjustments to its compensation limits, reflecting inflation and cost increases over time.
These increases highlight the importance of keeping compensation limits in line with inflation, ensuring that passengers are adequately compensated for modern travel costs.
Media Contact
Joanna Teljeur, AirAdvisor, 1 7059573464, [email protected], https://airadvisor.com/en/about-us
SOURCE AirAdvisor
Share this article