Carriage by Air Act 1935

Airline liability — when can you sue? The Convention sets out exactly when an airline is legally responsible for harm:

• Death or injury of a passenger: the airline is liable if the accident happened on board or during boarding/disembarking
• Lost or damaged baggage or cargo: the airline is liable if the loss occurred while the goods were in its care
• Delays: the airline is liable for losses caused by unreasonable delays

Caps on compensation (liability limits): This is one of the most significant features. The airline's liability is capped (limited to a maximum amount), expressed in old French "gold francs":

• Passengers: up to 125,000 francs per person (converted to Australian dollars at the exchange rate when damages are assessed)
• Cargo/luggage: 250 francs per kilogram (unless the shipper declared a higher value and paid extra)
• Personal items carried by a passenger: 5,000 francs

These caps cannot be contracted away — any agreement trying to set a lower limit is automatically void. However, a higher limit can be agreed between the carrier and passenger.

When is the airline off the hook?

• If the airline proves it took all necessary measures to avoid the damage (or it was impossible to do so)
• If the passenger's or shipper's own negligence contributed to the loss, the court can reduce or eliminate the airline's liability
• But if the airline caused harm through wilful misconduct (deliberate or reckless wrongdoing), it loses the right to rely on the liability caps

Time limits for complaints and lawsuits:

• Damaged luggage: complain within 3 days of receipt
• Damaged cargo: complain within 7 days
• Delays: complain within 14 days
• Lawsuits: must be commenced within 2 years of the scheduled arrival date — after that, the right to sue is extinguished

Where can you sue? Passengers and shippers can only bring legal action in one of four places: where the airline is based, where it has its principal office, where the ticket/contract was made, or at the destination. This prevents "forum shopping" (picking the most advantageous court).

Death of a passenger — special rules: The Act's Second Schedule sets out who can sue when a passenger dies. Eligible family members include spouses, parents, grandparents, siblings, and children (including adopted and illegitimate children). Only one legal action can be brought per death, and any damages recovered are shared among all eligible family members.

Domestic flights: The Warsaw Convention technically only applies to international flights. However, the Act gives the Governor-General power to extend the Convention's rules to domestic (non-international) air travel by regulation — meaning the same framework can apply within Australia too.

Why does it matter?

Before this kind of international agreement, an airline accident could trigger wildly different legal consequences depending on which country's law applied. This Act ensures that Australia honours its international obligations, gives Australians clear rights when things go wrong in the air, and provides airlines with predictable, capped liability — balancing consumer protection with the commercial viability of the aviation industry.