The International Air Transport Association (IATA) is again at loggerheads with the US Department of Transportation (DoT) over the issue of passenger-liability limits, describing new US proposals as "unlawful and unwise".
IATA appeared to have reached a truce with the DoT in mid-year when it produced a new intercarrier agreement, signed by many of the world's leading airlines, which lifts the long-standing caps on passenger-liability claims.
Effectively, airline passengers would be allowed to sue for unlimited damages without needing to prove wrongdoing on the part of the carrier.
That agreement was filed with the DoT and European Commission, with the expectation of it being put into law by the start of November.
Now the DoT has come up with its own counter-proposals, which allow unlimited damage claims but only where negligence can be shown on the part of the airline. IATA says that this would have the effect of leaving some claims still capped at $75,000. The proposed rule, which is expected to be finalised, by the end of the year, would apply to all carriers flying to and from the USA.
IATA has already filed a 68-page objection to the proposals, claiming that they threaten to "destroy seamless travel".
Source: Flight International
