The Montreal Convention is an international treaty, adopted in 1999, and incorporated into Canadian law by way of the federal Carriage by Air Act. It exclusively governs the liability of airlines in the case of accidents, delay, and other incidents involving international carriage between Canada and countries that have ratified the Convention.
It further seeks to provide uniformity and certainty in claims, providing clearer rules for passengers and airlines alike. If a claim is not specifically provided for in the Convention, it is not recoverable—regardless of local law.
The International Civil Aviation Organization ("ICAO") reviews the liability limits every 5 years to adjust for inflation.
Air Carriers must apply the new limits as of December 28, 2024
It is important to note that the increased limits as of December 28, 2024, only apply to events that arise on or after December 28, 2024. Events occurring prior to December 28, 2024, continue to be governed by the old limits.
Special Drawing Rights (SDR) is a form of international money, created by the International Monetary Fund, and defined as a weighted average of various convertible currencies.
Tariff Amendments
The Air Transportation Regulations require air carriers to set out the limits of liability respecting passengers and goods in its tariffs. Canadian air carriers who conduct international flights must amend their tariffs to include the revised amounts and file these with the Canadian Transportation Agency.
*Canadian dollar amounts in the table were calculated using exchange rates in effect on February 7, 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
