From the Minister's summary, it sounds like the Act applies to delays, cancellations, and overbookings.
20 March 2008
AA022/2008
GREATER PROTECTION FOR AUSTRALIANS TRAVELLING ABROAD
The Rudd Labor Government is moving quickly to give Australians travelling overseas on international airlines access to fairer compensation in the event of an airline accident, following nine years of inaction by the previous government.
Today I introduced into the Parliament the
Civil Aviation Legislation Amendment (1999 Montreal Convention and Other Measures) Bill which implements the 1999 Montreal Convention, a multilateral aviation agreement that updates the potential liability of international carriers.
The Convention includes new, tougher liability arrangements for:
- The death or injury of a passenger;
- The loss or damage to a passenger's baggage;
- The loss or damage to a freight shipment; as well as
- Delays to the scheduled arrival of a passenger, baggage or freight.
The new scheme makes it easier for Australians to seek fair and timely compensation - a big step forward in consumer protection.
Under the Montreal Convention airlines could be required to compensate passengers for all proven damages. This compares to the old system where passenger compensation was potentially capped at an amount set in the 1920s and in a currency which no longer exists.
What's more, the cap on liability is removed entirely for personal death and injury, unless the airline is able to prove the damage was not caused by negligence.
Already, 86 countries have ratified the Convention including most of Australia's major aviation markets. In fact, Australia is the only OECD country not to have signed or ratified the Convention, with the USA, Japan, China and New Zealand having ratified it in 2003 and the UK and most European Union countries doing so 2004.
This is yet another example of where the previous Howard Government turned its back on the international community to the detriment of the Australian public.
The new scheme will also benefit airlines by slashing the paperwork associated with passenger and cargo transportation, clearing the way for modern electronic billing systems.
To cope with the grossly inadequate liability limits under the previous international arrangements, many international airlines have already voluntarily begun operating under more generous liability arrangements. As a result, the new arrangements are not expected to increase travel or insurance costs.
The multi-national Montreal Convention was negotiated in 1999 and applies to flights between countries which have signed on to the scheme.
It is expected to become operational on flights out of Australia within six months of the Bill passing the Parliament and Australia finalising treaty processes.
Further information on the Montreal Convention is available at:
www.infrastructure.gov.au/aviation/international/liability.aspx
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