In the aftermath of the tragic crash of Air India Flight AI171 on June 12, 2025, in Ahmedabad, the Airline Users Rights and Grievances Redressal Forum (AURGRF) has submitted a formal memorandum to the Hon’ble Minister of Civil Aviation. The Forum is calling for the urgent implementation of the revised compensation limits under the Montreal Convention 1999 (MC99), recently updated by the International Civil Aviation Organization (ICAO) and effective globally from December 28, 2024.
The crash claimed 241 lives onboard and over 30 on the ground, including students in a nearby hostel. In response, Air India and the Tata Group announced Rs 1 crore in compensation per victim, along with an interim Rs 25 lakh payment and support centres in Ahmedabad, Mumbai, Delhi, and London.
This tragedy underscores the urgent need to strengthen passenger protections and establish consistent, fair airline liability across both international and domestic sectors.
While the 2019 Air Passengers Rights Charter was a positive move, AURGRF points out major gaps in consistency. Compensation varies depending on whether a flight is international or domestic. For death or serious injury, international passengers may receive up to 113,100 SDR, while domestic cases are limited to Rs 20 lakh. Baggage claims are capped at 1,131 SDR internationally but only Rs 20,000 domestically. For cargo loss or damage, the limit is 19 SDR per kg internationally, compared to just Rs 350 per kg on domestic flights.
Highlighting these inconsistencies as barriers to accountability and consumer trust, AURGRF has pointed to the new ICAO-mandated MC99 thresholds, which raise liability limits significantly:
- Death or serious injury: 151,880 SDR (~USD 202,500)
- Passenger delay: 6,303 SDR (~USD 8,400)
- Baggage loss/damage/delay: 1,519 SDR (~USD 2,000)
- Cargo loss/damage: 26 SDR/kg (~USD 35/kg)
The 1999 Montreal Convention (MC99), framed by ICAO and IATA, establishes a uniform global liability standard that applies equally to domestic and international airline operations worldwide.
Supported by ICAO Annexes 1–19, especially Annexes 6, 9, 13, 17, 18, and 19, it harmonizes rules on operations, facilitation, security, dangerous goods, and safety management, thereby strengthening both passenger protection and airline accountability. This facilitates an aircraft bearing the same registration number may seamlessly serve domestic and international routes, carrying passengers and baggage, and even operate under code-sharing or pooling agreements with other international carriers.
These globally harmonized thresholds enhance passenger rights and clarify airline liability. MC99 also allows for additional compensation if negligence is proven. Given that Indian carriers frequently operate the same aircraft across both domestic and international routes and participate in code-sharing with foreign airlines, a unified regulatory framework is both logical and essential. AURGRF urges the Government of India to:
- Ratify ICAO’s updated MC99 limits without delay
- Amend the 2019 Air Passengers Rights Rules to reflect international standards
- Ensure equal compensation protection for all passengers, regardless of route or carrier type
This is a pivotal moment for India to align with global best practices and demonstrate leadership in passenger rights through timely, transparent, and compassionate reform.
