* Tir 
it * COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 10.12.1996 
COM(96) 663 final 
95/0359 (SYN) 
Amended proposal for a 
COUNCIL REGULATION (EC) 
ON AIR CARRIER LIABILITY IN CASE OF ACCIDENTS 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

Explanatory memorandum 
During the plenary session on 17 September 1996 the European parliament approved the 
proposal for a Council Regulation presented by the Commission on air carrier liability in case 
of accidents1. It also adopted a certain number of amendments to the text put forward. 
The Commission accepted the amendments 1 and 2 introducing new recitals since they 
express in a cautious wording the need for the revision of the Warsaw Convention at 
multilateral level and the role, nevertheless, that a Community action could play in such 
negotiations, serving as a spur for a global solution. 
It also accepted the amendment concerning recital 9 since it increases the level of strict 
liability from ECU 100,000 to ECU 120,000. 
It accepted the amendment related to recital 13 since it reaffirms with stronger wording than 
the original Commission's proposal, the necessity to revise the cargo and luggage liability 
systems. 
It accepted the amendments related to recital 14 and article 8 since it introduces a more 
precise wording, replacing "values" by "financial amounts". 
The Commission accepted the amendment related to recital 10 since it clarifies the need for 
advance payments. 
Likewise it adopts the amendment related to article 7 since it clarifies the nature of the action 
to be brought before a court, it also defines the domicile at the moment the accident 
occurred. 
The Commission also partially accepted the amendments concerning: 
Recital 12 and article 6 in so far as a commitment to apply the Regulation will be 
introduced in negotiations with third countries. 
Article 2.1) c) and d) as far as the removal of the lump sum and the new definition 
of persons entitled to compensation are concerned. 
i COM(95) 724 final of 20.12.1995 
Article 4 since it introduces more flexibility for the advance payment. 
Article 5.2) since it reinforces the right of information of air transport users. 
The Commission can accept in principle, subject to some redrafting the following 
amendments concerning: 
Recital 8 and article 3.1) in so far as they make clear that only the monetary liability 
limits are concerned by this Regulation. 
Article 1 which clarifies the scope of the Regulation. 
Article 3.2) since it increases the level of strict liability from 100,000 Ecu to 
120,000. 
A new art.7A which considers the possibility of récourse for carriers 
A new article 9A since it requests an evaluation report by 1999. 
AMENDED PROPOSAL FOR A 
COUNCIL REGULATION 
ON AIR CARRIER LIABILITY IN CASE OF ACCIDENTS 
Whereas a full review and revision of the 
Warsaw Convention is long overdue and 
would represent, in the long term, a more 
uniform and applicable response, on an 
international level, to the issue of airline 
liability in case of accidents: whereas 
efforts to increase the limits of liability 
imposed by the Warsaw Convention should 
continue through negotiation at multilateral 
level: 
Whereas Community action is nevertheless 
still desirable, to improve the level of 
compensation available to passengers and 
could serve as a guideline for improved 
passenger protection on a global scale: 
Whereas the rules on liability in case of 
accidents are governed by the Convention 
for the Unification of Certain Rules 
Relating to International Carriage by Air 
signed at Warsaw, 12 October 1929, 
hereafter called the Convention, or that 
Convention as amended at The Hague on 
28 September 1955, whichever may be 
applicable; whereas the Warsaw 
Convention is applied worldwide for the 
benefit of both passengers and air carriers, 
and must be preserved; Unchanged 
Whereas the rules on the nature and Unchanged 
limitation of liability in the event of death, 
wounding or any other bodily injury 
suffered by a passenger form part of the 
terms and conditions of carriage in the air 
transport contract between carrier and 
passenger; whereas Council Regulations 
(EEC) NT 2407/922, 2408/923, as amended 
by the Act of Accession of Austria, 
Finland and Sweden, and 2409/924 have 
created an internal aviation market wherein 
it is appropriate that the rules on the nature 
and limitation of liability should be 
harmonized; 
Whereas the limit set on liability by the Unchanged 
Warsaw Convention is too low by today's 
economic and social standards; whereas in 
consequence Member States have variously 
increased the liability limit, thereby leading 
to different terms and conditions of carriage 
in the Community; 
Whereas in addition the Warsaw 
Convention only applies to international 
transport; whereas in the internal aviation 
market the distinction between national and 
international transport has been eliminated; 
whereas it is therefore appropriate to have 
the same level and nature of liability in 
both national and international transport; Unchanged 
Whereas the present low limit of liability 
often leads to lengthy legal actions which 
damage the image of air transport; Unchanged 
2 OJ N* L 240, 28.8.1992, pi 
3 OJ N' L 240, 28.8.1992, p 8 
4 OJ N * L 240, 28.8.1992, p 25 
Whereas Community action in the field of Unchanged 
air transport should also aim at a high level 
of protection for the interests of the users; 
Whereas in order to provide harmonized 
conditions of carriage in respect of liability 
of air carrier and, further, in order to 
ensure a high level of effective protection 
of air users, action, regard being had to 
the principle of subsidiarity, can best be 
addressed at Community level; Unchanged 
Whereas it is appropriate to remove all 
limits of liability in the event of death, 
wounding or any other bodily injury 
suffered by a passenger; Whereas it is appropriate to remove all 
monetary limits of liability in the sense of 
article 22(1) of the Warsaw Convention or 
any other legal or contractual limits in the 
event of death, wounding or any other 
bodily injury suffered by a passenger; 
Whereas in order to avoid situations where 
victims of unpreventable accidents remain 
uncovered, carriers should not, with respect 
to any claim arising out of the death, 
wounding or other bodily injury of a 
passenger under article 17 of the Warsaw 
Convention, avail themselves of any 
defense under article (20) §1 thereof up to 
the sum of ECU 100,000; Whereas in order to avoid situations where 
victims of unpreventable accidents remain 
uncovered, carriers should not, with respect 
to any claim arising out of the death, 
wounding or other bodily injury of a 
passenger under article 17 of the Warsaw 
Convention, avail themselves of any 
defense under article (20) §1 thereof up to 
the sum of ECU 120.000: whereas under 
article 21 of the Warsaw Convention, a 
court can wholly or partly exonerate a 
carrier from his liability if the carrier 
proves the contributory negligence of the 
victim. 
Whereas passengers or next-of-kin should Whereas prompt advance payments can 
receive a lump sum as soon as possible in considerably assist the injured passengers 
order to face immediate needs; or next-of-kin in meeting the immediate 
costs following an air accident; 
Whereas persons entitled to compensation 
should have the benefit of legal clarity in 
the event of an accident, whereas they 
should be fully informed beforehand of the 
applicable rules; whereas it is necessary to 
avoid lengthy litigation or claims process; 
whereas it is appropriate in addition to give 
the person entitled to compensation the 
option of taking action in the courts of the 
Member State in which the passenger has 
his domicile or permanent residence; Whereas persons entitled to compensation 
should have the benefit of legal clarity in 
the event of an accident, whereas they 
should be fully informed beforehand of the 
applicable rules; whereas it is necessary to 
avoid lengthy litigation or claims process; 
whereas it is appropriate in addition to give 
the person entitled to compensation the 
option of taking action in the courts of the 
Member State in which the passenger had 
his domicile at the time of the accident: 
Whereas it is desirable in order to avoid 
distortion of competition that third-country 
carriers adequately inform passengers of 
their conditions of carriage; Unchanged 
Whereas it is desirable in order to ensure 
as a broad protection as possible for the 
passengers, that the Community shall seek 
to incorporate in civil aviation agreements 
with third countries provisions similar to 
those outlined in this Regulation; 
Whereas the improvement of the situation 
for luggage and cargo is currently taken 
care of at International Civil Aviation 
Organization (ICAO) level and does not 
require the same urgent treatment as the 
passengers' situation; Whereas, for consistency and coherence. 
Community action aiming at the 
improvement and harmonisation of the 
liability of carriers for lost or damaged 
luggage and cargo will also need to be 
addressed; 
Whereas it is appropriate and necessary that 
the values expressed in this Regulation be 
increased in accordance with economic 
developments; whereas it is appropriate to 
empower the Commission, after 
consultation of an advisory committee, to 
decide upon such increases, Whereas it is appropriate and necessary that 
the financial amounts expressed in this 
Regulation be increased in accordance with 
economic developments; whereas it is 
appropriate to empower the Commission, 
after consultation of an advisory committee, 
to decide upon such increases, 
Article 1 
This Regulation defines the obligations of 
Community air carriers to cover liability in 
the event of accidents to passengers. This Regulation defines the obligations of 
Community air carriers to cover liability 
for damage sustained in the event of death 
or wounding of a passenger or any other 
bodily injury suffered by a passenger, if the 
accident which caused the damage so 
sustained took place on board the aircraft 
or in the course of any of the operations of 
embarking or disembarking. 
Article 2 
1. For the purpose of this Regulation: 1. For the purpose of this Regulation: 
a) "air carrier" means an air transport Unchanged 
undertaking with a valid operating license; 
b) "Community air carrier" means an air 
transport undertaking in the sense of 
Council Regulation (EEC) N° 2407/92; Unchanged 
c) "persons entitled to compensation" 
means the victims and/or persons who, in 
the light of the applicable law, are entitled 
to represent the victims in accordance with 
a legal provision, a court decision or in 
accordance with a special contract; c) "persons entitled to compensation" 
means a passenger and, in the event of the 
death of the passenger, any natural person 
entitled to claim in respect of that death in 
accordance with applicable law: 
d)"lump sum" means an advance payment Delete 
to the person entitled to compensation to 
enable him to meet his most urgent needs, 
without prejudice to the speediest settlement 
of full compensation; 
e) "ECU" means the unit of account Unchanged 
adopted in drawing up the general budget 
of the European Communities in 
accordance with articles 207 and 209 of the 
Treaty. 
f) "Warsaw Convention" means the 
Convention for the Unification of certain 
Rules relating to International Carriage by 
Air, signed in Warsaw on 12 October 
1929, together with all international 
instruments which build on and are 
associated with it; •• f) "Warsaw Convention" means the 
Convention for the Unification of certain 
Rules relating to International Carriage by 
Air, signed in Warsaw on 12 October 
1929 : or the Warsaw Convention as 
amended at the Hague on 28 September 
1955: and the Convention Supplementary 
to the Warsaw Convention done at 
Guadalajara on 18 September 1961 -
whichever is applicable to the passenger's 
contract of carriage; 
2. Concepts contained in this Regulation 
which are not defined in paragraph 1 shall 
be equivalent to those used in the Warsaw 
Convention. Unchanged 
Article 3 
1. The liability of a Community air carrier 
for damages sustained in the event of the 
death, wounding or any other bodily injury 
suffered by a passenger shall not be subject 
to any statutory or contractual limits. 1. The amount of the pecuniary 
compensation that a Community air carrier 
has to sustain in the event of the death, 
wounding or any other bodily injury 
suffered by a passenger in case of accident 
shall not be subject to any legal, 
conventional or contractual limits. 
2. For any damages up to the sum of ECU 
100.000 the Community air carrier shall 
not exclude or limit his liability by proving 
that he and his agents have taken all 
necessary measures to avoid the damage or 
that it was impossible for him or them to 
take such measures. 2. For any damages up to the sum of ECU 
120.000 the Community air carrier shall 
not exclude or limit his liability by proving 
that he and his agents have taken all 
necessary measures to avoid the damage or 
that it was impossible for him or them to 
take such measures. 
3. If the carrier proves that the damage was 
caused bv or contributed to by the 
negligence of the injured person the court 
may, in accordance with the provisions of 
its own law, exonerate the carrier wholly 
or partly from his liability. 
Arrtrit 4 
1. The carrier shall without delay, and in 
any event not later than ten days after the 
event during which the damage occurred, 
pay to or make available to the person 
entitled to compensation a lump sum of up 
to ECU 50,000 in proportion to the injury 
sustained and in any event a sum of ECU 
50,000 in case of death. 
2. The lump sum may be offset against any 
subsequent sum to be paid in respect of the 
liability of the Community air carrier, but 
is not returnable under any circumstances. 1. The carrier shall without delay, and in 
any event not later than ten days after the 
identity of the person entitled to 
compensation has been established make 
such advance payments as may be required 
to meet immediate economic needs. 
2. The payments under paragraph 1 shall 
not constitute recognition of liability and 
may be offset against any subsequent sums 
paid on the basis of the Community air 
carrier liability, but are not returnable 
under any circumstances. 
Article 5 
1. The requirements contained in articles 3 Unchanged 
and 4 shall be included in the Community 
air carrier's conditions of carriage 
2. Adequate information on the provisions 
contained in articles 3 and 4 shall on 
request be given to passengers at the 
Community carrier's agencies, travel 
agencies and check-in counters, and a 
summary of these requirements shall be 
made on the ticket document. 2. Adequate information on the provisions 
contained in articles 3 and 4 shall on 
request be given to passengers at the 
Community carrier's agencies, travel 
agencies and check-in counters, and a 
summary of these requirements, in plain 
and intelligible language, shall be printed 
on the ticket document. 
10 
3. Air carriers established outside the 
Community and not subject to the 
obligations referred to in articles 3 and 4 
shall expressly and clearly inform the 
passengers thereof, at the time of purchase 
of the ticket at the carrier's agencies, travel 
agencies, or check-in counters located in 
the territory of a Member State. Air 
carriers shall on request provide the 
passengers with a form setting out their 
conditions. The fact that the limit is 
indicated on the ticket document does not 
constitute sufficient information. 3*.î Air carriers established outside the 
Community, operating to. from and within 
the Community and not subject to the 
obligations referred to in articles 3 and 4 
shall expressly and clearly inform the 
passengers thereof, at the time of purchase 
of the ticket at the carrier's agencies, travel 
agencies, or check-in counters located in 
the territory of a Member State. Air 
carriers shall on request provide the 
passengers with a form setting out their 
conditions. The fact that the limit is 
indicated on the ticket document does not 
constitute sufficient information. 
Article 6 
1. Once a year Member States' authorities 
shall notify the list of third country air 
carriers not subject to the rules of this 
Regulation to the Air Transport User 
Organisations concerned and to the 
Commission, which shall make them 
available to the other Member States. 1. Once a year Member States' authorities 
shall notify the list of third country air 
carriers not subject to the rules of this 
Regulation and operating to. from and 
within the Community, to the Air Transport 
User Organisations concerned and to the 
Commission, which shall make them 
available to the other Member States. 
2. Whenever the Commission shall conduct 
negotiations in relevant fields of civil 
aviation with third countries on behalf of 
the Community, it shall seek to incorporate 
the provisions of this Regulation into the 
Agreements. 
Article 7 
A person entitled to compensation in the 
case of accidents involving Community air 
carriers may, in addition to the rights 
conferral by article 28 of the Warsaw 
Convention bring an action for liability 
before the courts of the Member State 
where the passenger has his domicile or 
permanent residence. An action for damages in the case of 
accidents involving Community air carriers 
may, in addition to the rights conferred by 
article 28 of the Warsaw Convention, be 
brought before the courts of the Member 
State where the passenger at the time of the 
accident had his domicile. 
11 
Article 7A 
In the event of death, wounding or anv 
bodily injury suffered by a passenger, 
nothing in this Regulation shall 
a) imply that a Community air carrier is the 
sole party liable to pay damages or 
b) restrict anv rights of a Community air 
carrier to contribution or indemnity from 
anv other party in accordance with 
applicable law. 
Article 8 
The Commission may, after consulting the The financial amounts referred to in 
advisory Committee established according articles 3 and 4 may be increased as 
to article 9, decide to increase as appropriate, according to the procedure set 
appropriate the values referred to in articles in article 9 § 2 if economic developments 
3 and 4 if economic developments indicate indicate the necessity of such a decision, 
the necessity of such a decision. Such Such decision shall be published in the 
decision shall be published in the Official Official Journal of the European 
Journal of the European Communities. Communities. 
12 
Article 9 
l.The Commission shall be assisted by a 
Committee of an advisory nature composed 
of the representatives of the Member States 
and chaired by the representative of the 
Commission. l.The Commission shall be assisted by a 
Committee of an advisory nature composed 
of the representatives of the Member States 
and chaired by the representative of the 
Commission. 
The representative of the Commission shall 
submit to the committee a draft of the 
measures to be taken. The committee shall 
deliver its opinion on the draft, within a 
time limit which the chairman may lay 
down according to the urgency of the 
matter, if necessary by taking a vote. 
The opinion shall be recorded in the 
minutes; in addition each Member State 
shall have the right to ask to have its 
position recorded in the minutes. 
The Commission shall take the utmost 
account of the opinion delivered by the 
committee. It shall inform the committee of 
the manner in which its opinion has been 
taken into account. 2. Unchanged 
2.Furthermore, the Committee may be 
consulted by the Commission on any other 
question concerning the application of the 
Regulation. 3. At the Commission request, the 
Committee may examine any other question 
concerning the application of the present 
Regulation. 
Article 9A 
The Commission shall present an evaluation 
report on the operation of this Regulation 
to the Social and Economic Committee, to 
the European Parliament and to the Council 
by 31 December 1999. 
13 

ISSN 0254-1475 
COM(96) 663 final 
DOCUMENTS 
EN 07 06 
Catalogue number : CB-CO-96-675-EN-C 
ISBN 92-78-13353-1 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
/H