The European Commission has hijacked the global debate on airline liability with proposals that would force all European Union carriers to conform to a Japanese-style unlimited liability system.
The move towards a legally enforceable liability regime not only appears to have taken the European carriers by surprise but the lack of consultation has also angered them. 'We were not consulted when the Commission was finalising the proposal nor did they tell us they were preparing to propose a regulation,' says Marc Frisque, manager of legal and social affairs at the Association of European Airlines. He argues a voluntary, global approach is best suited to the industry.
Brussels has dragged its feet on the liability issue since 1989 and an official admits that the Iata-sponsored intercarrier agreement launched last October 'has triggered our action in this field.' But the Commission was unhappy with the Iata agreement because 'it is a voluntary, umbrella agreement.'
The main proposals for a European regulation are:
* Strict liability up to Ecu100,000 ($130,500) and unlimited liability if negligence is proved;
* The carrier must make a lump sum payment of Ecu50,000 within 10 days of a fatal accident to next-of-kin;
* Claimants can have their cases heard before courts of a member state in which they have their domicile or permanent residence;
* Each member state will produce a list of non-EU carriers that are not subject to the regulation annually;
* Non-EU carriers must tell passengers when operating in a member state of non-compliance with the regulation at time of ticketing or check-in.
The regulation is non-binding on third country carriers and the Commission official insists the EU is not going 'down the US road' paved by the 'voluntary' Montreal accord, which forced carriers serving the US to accept the higher liability limits.
One of the main concerns for carriers is the increase in insurance premiums. The AEA disputes the Commission's claim that overall premium rises will 'be insignificant'.
The Commission is aiming to have the regulation in force by the end of 1996.
Mark Odell
Source: Airline Business
