On June 14, 2022, by Presidential order No.11-2022, published in La Gaceta, Diario Oficial No.111 of June 17, 2022, the Republic of Nicaragua, adhered to the "Montreal Convention on the Unification of Certain Rules for International Carriage by Air".

Since air transportation is vital in the economy development of each State, taking into consideration that since the middle of the XX century it was warned of the inadequacy of the content of the Warsaw Convention of 1929 that regulated the liability of airlines, it became evident the need to modify and unify airlines liability. The Montreal Convention was created and adopted in 1999, with the objective of having a modern instrument to regulate the responsibilities between airlines that carry out international operations and passengers, their luggage and cargo. It is important to mention that in Central America, Nicaragua is the last country to adhere to this convention that promotes a safety regime for consumers.

Some relevant points to highlight are the following:

  • Scope of application: This convention applies to all international carriage of persons (passengers), baggage or cargo performed by aircraft for reward. It applies equally to gratuitous carriage by aircraft performed by an air transport undertaking. The passenger shall be given written notice to the effect that where this Convention is applicable it governs and may limit the liability of carriers in respect of death or injury and for destruction or loss of, or damage to, baggage, and for delay. The breach of the passenger's obligations shall not affect the existence or validity of the contract of carriage, which shall nevertheless be subject to the rules of the Convention including those relating to limits of liability.
  • Documentation of the parties relating to the carriage of passengers, baggage and carga: In the case of carriage of persons, a transport document, ticket or ticket the contract shall be issued, and the carrier shall give the passenger a baggage identification voucher for each piece of checked baggage. Likewise, in the transport of cargo, an air waybill will be issued.
  • Liability of the carrier and measure of compensation for damage:
  1. The carrier is liable for damage caused in case of death or bodily injury of a passenger for the sole reason that the accident which caused the death or injury occurred on board the aircraft or during any of the operations of embarkation or disembarkation. In this case the carrier assumes strict liability up to the sum of 128,821 Special Drawing Rights (SDR).
  1. The carrier is liable for damage caused in case of destruction, loss, or damage to checked baggage for the sole reason that the event which caused the destruction, loss or damage occurred on board the aircraft or during any period when the checked baggage was in the custody of the carrier. However, the carrier shall not be liable for the nature, defect, or vice peculiar to the baggage. The liability of the carrier is limited to the sum of 1,131 SDRs.
  1. The carrier is liable for damage caused in case of destruction or loss of or damage to cargo, for the sole reason that the event that caused the damage occurred during carriage by air. In this case the carrier assumes strict liability up to the sum of 22 SDR.
  1. The carrier is liable for damage caused by delay in the carriage by air of passengers, baggage, or cargo. However, the carrier shall not be liable for damage occasioned by delay if he proves that he and his servants and agents took all measures that were reasonably necessary to avoid the damage or that it was impossible for him and others to take such measures. The liability of the carrier is limited to the sum of 5. 346 SDR.
  • Exoneration: If the carrier proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he or she derives his or her rights, the carrier shall be wholly or partly exonerated from its liability to the claimant to the extent that such negligence or wrongful act or omission caused or contributed to the damage.
  • Monetary Unit: The Montreal Convention has chosen the International Monetary Fund's SDR as its monetary unit. This is made up of a basket of six major international currencies.
  • Review of limits: The limits of liability established in the convention will be reviewed by the depositary every five years. The last revision was made in 2019 and is reflected in this text.
  • Aircraft Insurance: States Parties shall require their carriers to maintain adequate insurance covering their liability under the Convention. The State Party to which the carrier operates services may require the carrier to provide evidence that it maintains adequate insurance covering its liability under the Convention.
  • Depositary: The Montreal Convention establishes International Civil Aviation Organization (ICAO) as the sole depositary. This facilitates any diplomatic procedures in which States may be interested.

The Convention establishes the urgently needed uniformity and predictability of rules relating to international carriage. It protects the interests of the passenger by introducing a modern two-tier liability system to facilitate the rapid recovery of proven damages without the need for lengthy litigation.