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Liability for Acts of Terrorism: The New Unlawful Interference Convention

Liability for Acts of Terrorism: The New Unlawful Interference Convention. Michael Gill, Senior Legal Counsel – IATA. McGill University - Institute of Air & Space Law 31 October 2009. The search for a fair compromise.

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Liability for Acts of Terrorism: The New Unlawful Interference Convention

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  1. Liability for Acts of Terrorism:The New Unlawful Interference Convention Michael Gill, Senior Legal Counsel – IATA McGill University - Institute of Air & Space Law 31 October 2009

  2. The search for a fair compromise • IATA advocated a purist approach: States, not airlines, are targets of terrorist activity • We sought a reasonable compromise which would provide: • Legal certainty • Compensation for victims • Protection for the airlines and other industry stakeholders

  3. The essential feature - the liability cap • Airline or its employees acted intentionally or recklessly and with knowledge • Act of employee: airline must prove that an appropriate system for selection and monitoring of staff has been established and implemented • Rebuttable presumption that an airline has not acted recklessly if it proves that a system to ensure compliance with Annex 17 of Chicago Convention in its home State has been established and implemented

  4. Does the Convention provide balance? • Strict liability for risk of damage which is not aimed at airlines • Liability cap is weak • Airlines are uncomfortable with exclusive remedy + restrictions on recourse • Overall scheme is unfairly weighted against the airlines

  5. Operational challenges of the International Fund • Any additional charge on airline tickets/air waybills presents commercial issues • The airline is responsible for remittance of funds: will it be feasible to pass on contributions to passenger/shippers ? • Airlines must weigh up the cost/benefits of the Convention scheme without knowing the exact level at which contributions will be set

  6. Entry into force • 35 ratifications • Only 7 signatories so far • 750,000,000 departing passengers per year • Some scenarios

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