For Flight 370, Liability Is As Unclear As The Plane’s Fate

Malaysian Air flight 370 is now presumed to have crashed in the Indian Ocean, but the uncertain circumstances surrounding the crash leaves the question of liability and compensation for the victims’ families uncertain, as well. Under the Montreal Convention of 1999, an international treaty, Malaysian Airline System Bhd is liable for as much as $175,000 per passenger if the airline can prove it wasn’t negligent, or if a third party – like terrorists or a manufacturer – was solely at fault. If they cannot make that defense, Malaysian Air’s liability could be much higher. One group of victims’ relatives in China has said it plans to hold the airline and the Malaysian government accountable for delays and cover-ups during the search for the plane, and there may be a case for holding plane manufacturer Boeing responsible.