Chairperson, over many decades South Africa has been an active participant in international agreements and conventions covering the liabilities of air carriers in regard to passengers, baggage and cargo - whether it is in regard to damage, loss, injury or fatalities. As one can imagine, with airlines crisscrossing the globe, with passengers or cargo being boarded or loaded in one place and flying to distant destinations and with airlines possibly having their headquarters in third countries, liability issues and the legal framework covering these issues can get to be quite complicated.
To deal with these challenges, international conventions and the alignment of domestic legislation with these conventions are the only practical way to proceed. The principal Act, which we are amending today, the Carriage by Air Act, dates back to 1946 and was informed by the so-called Warsaw Convention. Clearly, the challenges and complexities have multiplied with the immense increase in air travel and air cargo operations.
In 1999, in response to these challenges, the most recent international convention convened in Montreal. South Africa is a signatory to the convention that emerged from Montreal and this amending Bill updates our domestic legislation to align it with the Montreal Convention.
The main new features of the Montreal Convention and therefore the consequential amendments which we are making today, are: firstly, the replacing of the old capped liability system with unlimited liability for carriers with regard to the death and injury of passengers; and secondly, a two-tier compensation system.
The first tier includes strict liability of up to 100 000 special drawing rights, which is approximately US$135 000, irrespective of whether the carrier is at fault. The carrier is held liable for compensation up to that sum regardless of fault. Then there is the second tier, which is based on the presumption of fault of a carrier and that has no limit whatsoever.
In terms of the Montreal Convention air carriers are required to maintain adequate insurance cover for their liabilities under the convention. Government, therefore, will not be liable for any damages that might occur as a result of any delay, loss of baggage or cargo or aircraft accidents.
The committee was briefed on the Montreal Convention and our accession to this convention. We also held public hearings on the amending Bill and we are sure that all major air carriers within our country have been consulted. No problems were raised in regard to the proposed amendments and the committee unanimously agreed to recommend to the House that we pass the Carriage by Air Amendment Bill. Thank you, Chairperson. [Applause.]
There was no debate.
Bill read a second time.