In proportion to recent developments in aviation technology and growth of the air transport market, the risk of damages to third parties caused by aircrafts and the likelihood of unlawful interference on an aircraft in flight has grown larger. The war risk insurance market was paralyzed by the 9/11 terror event. And if another event on the scale of 9/11 occurs, compensations for third party damages will be impossible. Recognizing the need to modernize the existing legal framework and the absence of a globally accepted authority that deals with third party liability and compensation for catastrophic damage caused by acts of unlawful interference, the ICAO and various countries have discussed a liability and compensation system that can protect both third party victims and the aviation industry for the 7 years. In conclusion, in order to provide adequate protection for victims and the appropriate protection for air transport systems including air carriers, work on modernizing the Rome Convention should be continued and the new Convention should be finalized in the near future. Korea has not ratified the relevant international treaties, i.e. Rome Convention 1933, 1952 and 1978, and has no local laws which regulate the damage caused by aircraft to third parties on land. Consequently, it has to depend on the domestic civil tort laws. Most of the advanced countries in aviation such as the United States, England, Germany, France and even China, have incorporated the International Conventions to their national air law and governed carriers third party liability within their jurisdiction. The Ministry of Justice organized the Special Enactment Committee for Air Transport chapter under Commercial Law. The Air Transport chapter, which currently includes third party liability, is in the process of instituting new legislation. In conclusion, to settle such problems through local law, it is necessary to enact as soon as possible domestic legislation on the civil liability of the air carrier which has been connected with third party liability and aviation insurance.
The purpose of this paper is to study precedent cases of the Air carrier liability for passengers. The article 17 of Warsaw Convention (also in Montreal Convention article 17-1) provides the Air carrier liability for passengers which is the most essential part of the Air carrier liability. According to these Conventions, 1) the carrier is liable for damage sustained in case of death or bodily injury of a passenger. Precedents and theories have disagreements on whether the damage covers the mental injury as well. 2) The carrier is liable for damage sustained from aviation accident. The definition of 'aviation accident' is becoming problematic. 3) The carrier is liable for damage sustained in case of death or bodily injury of a passenger upon condition only 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 question at issue is the range of the operations of embarking or disembarking. This paper introduces the precedents (also, the model precedents) about the carriers liability for passengers and related cases, so as to help understand the trend of judicial decisions. Furthermore, the cases, once took all of the attention of the international air carriers, concerned with the 'Economy class syndrome' (DVT : Deep Vein Thrombosis) are also presented. Under the new Montreal Convention, the carriers liability for passengers will continue to be the main issue. Thus it is required that academics as well as practical businesses may keep up their studies about this issue.
It is essential that the liability for damage on the surface caused by aircraft be regulated at international level. However, the Rome Convention on Damage Caused by Foreign Aircraft to Third Parties on the Surface of 1952 and the Montreal Protocol of 1978 did not have significant worldwide repercussions since few countries have ratified them. So the Secretariat ofthe ICAO has produced the draft Convention for the modernization of the Rome Convention in 2002 and the Special group has considered the text of the draft Convention so far. The draft Convention contains main issues with regard to the liability system of the operator and the insurability of the risks for damage to third parties on the ground. In order to protect the air transport sector of a country as well as to facilitate speedy recoveries by victims, Work on modernizing the Rome Convention should be continued and the new Convention should be finalized in the near future.
Clearly there are many legal arguments and criticisms surrounding the proposals for change in the Warsaw Convention and the need for a radical review. The question remains is unlimited liability the answer or should there be some other form of supplemental compensation and if so, what limits should be applicable. It does seem that the adopted limits of the Convention are seen by many as the first line of defence, which, dependent on political and cultural differences, the legal interpretation of contractual wording and the legal system globally have resulted in enormous differences in compensation paid whether or not the Convention limits were imposed. An example of this is in the United States, which highlights the significance of the problem in that domestic travellers without Convention Limits can, through the American legal system, obtain compensation in the multi-million dollar area for a death claim, whereas a passenger t1ying internationally would in the first instance be subject to Convention Limits. expensive legal action through litigation. To date, we can advise that insurers have not charged additional premium for unlimited liability coverage. Insurance rates as we have stated are hardening considerably. To date, average rate increases have been plus 56% for aircraft hull and plus 45% for liabilities. Insurers last year suffered global losses of around US $ 1.1 Billion against a premium income of US $ 800,000. The target premium income for 1993 is believed to be in the region of US $1.4 Billion.
In this article the present writers have surveyed recent cases on Warsaw Convention especially on the cases emerged in the years between 1986 to 1993. The cases before 1986 were discussed already in the book titled "Liability of International Air Carrier," written by Professor Choi, published in Seoul 1986. In this article the writers have reviewed most of the American cases and some cases from the courts of Germany, France and England. Main subjects which were discussed herein were as follows: Liability of air carriers in Warsaw Convention carriage 1. Exclusivity of the Warsaw Convention as a remedy 2. Warsaw Jurisdiction 3. The scope of the Warsaw Convention's definition of "Accident" under Article 17 of the Warsaw Convention (1) Mental anguish (2) Unusual or unexpected events 4. Adequacy of notice of the limitation of liability to passengers for injuries and death 5. Damages recoverable, punitive damages and burden of proof 6. The wilful misconduct exception; definition of wilful misconduct 7. Cargo and passenger baggage 8. Time limitation of actions After examining articles published world-wide, this article compiles and analyses recent cases involving the Warsaw Convention system. As Warsaw System is based on international convention, maintaining uniformity in interpretation is of utmost importance. Therefore, this type of study is essential for resolving air-transportation disputes in Korea. This article examines the current state and recommends the desired course for the Warsaw Convention. The writers hope that this article is helpful to the Korean courts and those in the air-transportation industry in interpreting the Warsaw Convention.
The Montreal Convention which came into force on November 4, 2003 over the world, has brought a fundamental change to the scope of carrier liability and expanded the sue scope of the carrier. Not only confirms the carrier liability, it also reflects the effects of code-share. In addition to integrate the existing principles that adopted by many conventions, the Montreal Convention has systematized the unity of international air transport into a single convention. It even successfully increased the extremely low compensation amount which was pointed out as a problem in the Warsaw Convention before. The Warsaw Convention, originally stood for the carriers, began to reflect the standpoint of the passengers. The Chinese Civil Aviation Law came into force on March 1, 1996. One of the significant characteristics of the law is that, the regulation on public and private law is mixed combined. Therein, the content of carrier liability system is prescribed in Chapter 9, which is explained in detail in this study. Besides, the relationship between the Montreal Convention and China will be expounded too. So far, China ranks the 5th in RPK and the 6thin FrK. However, in spite of the high ranks, China has not yet joined this convention. This can be regarded as a serious problem. China should join it as soon as possible for a further development and deeper cooperation with the air-industry-developed countries. Once the government ratifies the Montreal Convention, it will benefit both the Chinese passengers and the airlines.
Until Montreal Convention was established in 1999, the Warsaw System is undoubtedly accepted private international air law treaty and has played major role on the carrier's liability in international aviation transport industry. But the whole Warsaw System, though it was revised many times to meet the rapid developments of the aviation transport industry, is so complicated, tangled and outdated. This thesis, therefore, aim to introduce the Montreal Convention by interpreting it as a new legal instrument on the air carrier's liability, specially on the passenger's, and analyzing all the issues relating to it. The Montreal Convention markedly changed the rules governing international carriage by air. The Montreal Convention has modernized and consolidated the old Warsaw System of international instruments of private international air law into one legal instrument. One of the most significant features of the Montreal Convention is that it sifted its priority to the protection of the interest of the consumers from the protection of the carrier which originally the Warsaw Convention intended to protect the fledgling international air transport business. Two major features of the Montreal Convention adopts are the Two-tier Liability System and the Fifth Jurisdiction. In case of death or bodily injury to passengers, the Montreal Convention introduces a two-tier liability system. The first tier includes strict liability up to 100,000SDR, irrespective of carriers' fault. The second tier is based on presumption of fault of carrier and has no limit of liability. Regarding Jurisdiction, the Montreal Convention expands upon the four jurisdiction in which the carrier could be sued by adding a fifth jurisdiction, i.e., a passenger can bring suit in a country in which he or she has their permanent and principal residence and in which the carrier provides a services for the carriage of passengers by either its own aircraft or through a commercial agreement. Other features are introducing the advance payment, electronic ticketing, compulsory insurance and regulation on the contracting and actual carrier etc. As we see some major features of the Montreal Convention, the Convention heralds the single biggest change in the international aviation liability and there can be no doubt it will prevail the international aviation transport world in the future. Our government signed this Convention on 20th Sep. 2007 and it came into effect on 29th Dec. 2007 domestically. Thus, it was recognized that domestic carriers can adequately and independently manage the change of risks of liability. I, therefore, would like to suggest our country's aviation industry including newly-born low cost carrier prepare some countermeasures domestically that are necessary to the enforcement of the Convention.
The Montreal Convention is an agreement that governs the liability of air carriers for injury and death to passengers travelling internationally by air. The Montreal Convention serves as the exclusive legal framework for victims and survivors seeking compensation for injuries or death arising from accidents involving international air travel. The Montreal Convention sets monetary liability caps on damages in order to promote the financial stability of the international airline transport industry and protect the industry from exorbitant damages awards in courts that would inevitably bankrupt an airline. The Convention allows a litigant suing under the Convention to avoid the liability caps in instances where the airline's culpability for the injury or death is the direct result of negligence, another wrongful act, or an omission of the airline or its agents. The Montreal Convention identifies specific locations as appropriate venues to advance claims for litigants seeking compensation. These venues are closely tied to either the carrier's business operations or the passenger's domicile. In March 2015, in an act of suicide stemming from reactive depression, the co-pilot of Germanwings flight 9525 intentionally crashed the aircraft into the French Alps killing the passengers and the remaining crew. Subsequent to the crash, there were media reports that Lufthansa made varying settlement offers to families of the passengers who died aboard the flight ranging from $8,300 USD to $4.5 Million USD depending on the passengers' citizenship. The unverified offers by Lufthansa prompted outcries from the families of the decedent passengers that they would institute suit against the airline in a more plaintiff friendly jurisdiction such as the United States. The first part of this article accomplishes two goals. First, it examines the Montreal Convention's venue requirement along with an overview of the recoverable damages from countries comprising the citizenship of the passengers who were not American. The intentional crash of Germanwings flight 9525 by its First Officer encompasses the possibility that Lufthansa may be exposed to unlimited compensatory damages beyond the liability caps contained in the Convention. The second part of this article explores the application of the Convention's liability limits to the Germanwings flight to demonstrate that the likelihood of escaping the liability limits is slim.
As the Reublic of Korea revised the Commercial Code including 40 articles of air transport enacted newly on May 23, 2011, so Korea became first legislative examples in the Commercial Code of the developed and developing countries. I would like to explain briefly the main contents of my paper such as (1) history of enacting newly Part VI (air transport) in the Korea's revised commercial law, (2) legal background enacting newly Part VI (air transport) in the Korea's revised commercial law and the problems on the conditions of air transport, (3) every countries' legislative examples on the civil liability of aircraft's operator, (4) unlawful Interference Convention and general risk convention of 2009, (5) main contents and prospects of the revised Commercial Code for the liability of aircraft's operator etc as the followings. Meanwhile as the Aviation Act, Commercial Code and Civil Code in Korea and Japan did not regulated at all the legal basis of solution on the disputes between victims and offender for the amount of compensation for damage due to personal or property damage caused by aircraft accidents in Korea and Japan, so it has been raised many legal problems such as protection of victims, standard of decision in trial in the event of aircraft accident's lawsuit case. But the Korean Revised Commercial Code including Part VI, air transport regulations was passed by the majority resolution of the Korean National Assembly on April 29, 2011 and then the South Korean government proclaimed it on May 23 same year. The Revised Commercial Code enforced into tothe territory of the South Korea from November 24, 2011 after six month of the proclaimed date by the Korean Government. Thus, though Korean Commercial Code regulated concretely and respectively the legal relations on the liability of compensation for damage in the contract of transport by land in it's Part II (commercial activities) and in the contract of transport by sea in its Part V (marine commerce), but the Amended Commercial Act regulated newly 40 articles in it's Part VI (air transport) relating to the air carrier's contract liability on the compensation for damage caused by aircraft accidents in the air passengers and goods transport and aircraft operator's tort liability on compensation for damage caused by the sudden falling or collision of aircraft to third parties on the surface and so it was equipped with reasonable and unified system among the transport by land, marine and air. The ICAO adopted two new air law conventions setting out international compensation and liability rules for damage caused by aircraft to third parties at a diplomatic conference hosted by it from April 20 to May 2, 2009. The fight against the effects of terrorism and the improvement of the status of victims in the event of damage to third parties that may result either from acts of unlawful interference involving aircraft or caused by ordinary operation of aircraft, forms the cornerstone of the two conventions. One legal instrument adopted by the Conference is "the Convention on Compensation for Damage to Third Parties, Resulting from Acts of Unlawful Interference Involving Aircraft" (Unlawful Interference Convention). The other instrument, "the Convention on Compensation for Damage Caused by Aircraft to Third Parties" (General Risk Convention), modernizes the current legal framework provided for under the 1952 Rome Convention and related Protocol of 1978. It is desirable for us to ratify quickly the abovementioned two conventions such as Unlawful Interference Convention and General Risk Convention in order to settle reasonably and justly as well as the protection of the South Korean peoples.
The Rome Convention System (1933, 1952, 1978) which deal the third party lability relating to damage caused by aircraft to third parties on the surface have not been so effective and successful like the Warsaw Convention System. This paper briefs the development of the Rome Convention System and the reasons of their failure which are the low level of the limit of liability and non-parties of major civil aviation states such as the United States, the United Kingdom, Japan, Germany and etc. The Diplomatic Conference hosted by ICAO at Montreal during April 20 to May 2 has successfully produced two Conventions; One is Convention on Compensation for Damage Caused by Aircraft to Third Parties (General Risk Convention), the other is Convention on Compensation for Damage to Third Parties, Resulting from Acts of Unlawful Interference involving Aircraft (Unlawful Interference Convention). The major contents and some problems of these two Conventions are reviewed in comparison with the exisiting Rome Convention System and other legal system. Particularly, the entrance into force of the Unlawful Interference Convention may take some time, at least more than 5 years, due to the realistic problems arising from the operation of International Civil Aviation Fund.
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