Contract of carriage

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A contract of carriage is a contract between a carrier of cargo or passengers and the consignor, consignee or passenger. [1] Contracts of carriage typically define the rights, duties and liabilities of parties to the contract, addressing topics such as acts of God and including clauses such as force majeure (removing liability for extraordinary occurrences beyond control of the parties). [2] Among common carriers, they are usually evidenced by standard terms and conditions printed on the reverse of a ticket or carriage document. Notification of a shipment’s arrival is usually sent to the "notify party", whose address appears on the shipping document. This party is usually either the buyer or the importer.

Contents

Carriage by sea

Paul Todd notes that the 1950 legal case of Heskell v. Continental Express ([1950] 1 All E.R. 1033) provides a "good desciption of [the] process of carriage", including the roles of forwarding agents and loading brokers in this process. [3]

Rail travel

Cross-border European railway tickets are covered by the CIV conditions of sale.

Air travel

In July 2010, it became widely public that Southwest Airlines had classified mechanical difficulties as an act of God in their contract of carriage, expanding the definition formerly shared with Delta, American, Continental and United. [4] This was later clarified by the airline as mechanical difficulties beyond the airline's control, as for instance the failure of the air traffic control system, or fuel delivery systems operated by airports.

Involuntary denied boarding

Airlines may sell more tickets for a flight than the number of seats that are actually available. This overselling can result in too many passengers turning up for a flight. When this happens, the airline first asks for volunteers to give up their seat in return for compensation. However, if there are not enough volunteers, the airline itself designates which passengers will have to give up their seats. This process is called involuntary denied boarding or (less formally) bumping. [5]

The proportion of passengers who are involuntarily denied boarding is around 1 in 10,000, and has been falling for the 25 years between 1990 and 2015. [6]

According to aviation analyst Henry Harteveldt, the airlines' contracts of carriage favour the company, not the passenger. Involuntary denial of boarding is not uncommon, [7] but removal after boarding because the seat is needed by others is "exceedingly rare". Nonetheless, an airline has a right to do so based on the contract, in his view. "Remember, it is their aircraft and their seat — you're just renting it to get from point A to point B", Harteveldt told Business Insider in 2017. [8]

Related Research Articles

A common carrier in common law countries is a person or company that transports goods or people for any person or company and is responsible for any possible loss of the goods during transport. A common carrier offers its services to the general public under license or authority provided by a regulatory body, which has usually been granted "ministerial authority" by the legislation that created it. The regulatory body may create, interpret, and enforce its regulations upon the common carrier with independence and finality as long as it acts within the bounds of the enabling legislation.

The Convention for the Unification of certain rules relating to international carriage by air, commonly known as the Warsaw Convention, is an international convention which regulates liability for international carriage of persons, luggage, or goods performed by aircraft for reward.

<span class="mw-page-title-main">Ryanair</span> Irish low-cost airline

Ryanair Holdings PLC is an Irish ultra low-cost carrier group headquartered in Swords, Dublin, Ireland. The company includes the subsidiaries Ryanair DACTooltip Designated activity company, Malta Air, Buzz, Lauda Europe and Ryanair UK. Ryanair DAC, the oldest airline of the group, was founded in 1984. Ryanair Holdings was established in 1996 as a holding company for Ryanair with the two companies having the same board of directors and executive officers. In 2019 the transition began from the airline Ryanair and its subsidiaries into separate sister airlines under the holding company. Later in 2019 Malta Air joined Ryanair Holdings.

<span class="mw-page-title-main">Checked baggage</span> Baggage stored in a vessels cargo hold

Checked baggage is luggage delivered to an airline or train for transportation in the hold of an aircraft, storage on a coach bus or baggage car of a passenger train. Checked baggage is inaccessible to the passenger during the flight or ride, as opposed to carry-on baggage.

<span class="mw-page-title-main">Low-cost carrier</span> Airline with generally lower fares

A low-cost carrier or low-cost airline (LCC), also called no-frills, budget or discount carrier or airline, is an airline that is operated with an emphasis on minimizing operating costs. Without some of the traditional services and amenities of traditional airlines, it allows lower fares though provides fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge extra fees such as for carry-on baggage. As of April 2020, the world's largest low-cost carrier is Southwest Airlines, which operates primarily in the United States, as well as in some surrounding areas.

The Montreal Convention is a multilateral treaty adopted by a diplomatic meeting of ICAO member states in 1999. It amended important provisions of the Warsaw Convention's regime concerning compensation for the victims of air disasters. The Convention attempts to re-establish uniformity and predictability of rules relating to the international carriage of passengers, baggage and cargo. Whilst maintaining the core provisions which have served the international air transport community for several decades, the treaty achieves modernization in a number of key areas. It protects passengers by introducing a two-tier liability system that eliminates the previous requirement of proving willful neglect by the air carrier to obtain more than US$75,000 in damages, which should eliminate or reduce protracted litigation.

A waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of cargo. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route. Most freight forwarders and trucking companies use an in-house waybill called a house bill. These typically contain "conditions of contract of carriage" terms on the back of the form that cover limits to liability and other terms and conditions.

<span class="mw-page-title-main">Boarding pass</span> Document provided to an air-travel passenger functioning as a ticket.

A boarding pass or boarding card is a document provided by an airline during airport check-in, giving a passenger permission to enter the restricted area of an airport and to board the airplane for a particular flight. At a minimum, it identifies the passenger, the flight number, the date, and scheduled time for departure. A boarding pass may also indicate details of the perks a passenger is entitled to and is thus presented at the entrance of such facilities to show eligibility.

<span class="mw-page-title-main">Electronic ticket</span> Digital ticket

An electronic ticket is a method of ticket entry, processing, and marketing for companies in the airline, railways and other transport and entertainment industries.

Economy class, also called third class, coach class, steerage, or to distinguish it from the slightly more expensive premium economy class, standard economy class or budget economy class, is the lowest travel class of seating in air travel, rail travel, and sometimes ferry or maritime travel. Historically, this travel class has been called tourist class or third class on ocean liners.

Airline booking ploys are used by travelers in commercial aviation to lower the price of flying by circumventing airlines' rules about how tickets may be used. They are generally a breach of the contract of carriage between the passenger and the airline, which airlines may try to enforce in various ways.

<span class="mw-page-title-main">Air Passengers Rights Regulation</span> European Union regulation

The Air Passengers Rights Regulation 2004 is a regulation in EU law establishing common rules on compensation and assistance to passengers in the event of denied boarding, flight cancellations, or long delays of flights. It requires compensation of €250 to €600 depending on the flight distance for delays over of at least three hours, cancellations, or being denied boarding from overbooking. Delays shorter than three hours means no entitlement to any compensation of any kind even if the delay was classified as non-extraordinary. Airlines must provide refreshments and accommodation where appropriate. The Court of Justice of the European Union has interpreted passenger rights strictly, so that there are virtually no exceptions for airlines to evade their obligations for breach of contract.

Overselling or overbooking is sale of a volatile good or service in excess of actual supply. Overselling is a common practice in the travel and hospitality sectors, in which it is expected that some people will cancel. The practice occurs as an intentional business strategy in which sellers expect that some buyers will not consume all of the resources they are entitled to, or that some buyers will cancel. The practice of overselling aims to ensure that 100% of available supply will be used, resulting in the maximum return on investment. However, if more customers than the seller expects do wish to purchase or use the sold commodity, it may leave some customers lacking a service they expected to receive.

On most modern airlines, flying standby is when a passenger without a seat assignment waits at the gate to see if there is an extra seat after all scheduled passengers have boarded. There are several common circumstances in which passengers fly standby:

<span class="mw-page-title-main">Airport check-in</span> Process of being approved to board an airplane

Airport check-in is the process whereby an airline approves airplane passengers to board an airplane for a flight. Airlines typically use service counters found at airports for this process, and the check-in is normally handled by an airline itself or a handling agent working on behalf of an airline. Passengers usually hand over any baggage that they do not wish or are not allowed to carry in the aircraft's cabin and receive a boarding pass before they can proceed to board their aircraft.

<span class="mw-page-title-main">Airline ticket</span> Entrance ticket used for air travel

An airline ticket is a document or electronic record, issued by an airline or a travel agency, that confirms that an individual is entitled to a seat on a flight on an aircraft. The airline ticket may be one of two types: a paper ticket, which comprises coupons or vouchers; and an electronic ticket.

<span class="mw-page-title-main">2017 United Express passenger removal</span> Instance of forced airline passenger deplaning

On April 9, 2017, at Chicago O'Hare International Airport, four paying customers were selected to be involuntarily deplaned from United Express Flight 3411 to make room for four deadheading employees. One of these passengers was David Dao, 69, a Vietnamese-American who was injured when he was forcefully removed from the flight by Chicago Department of Aviation security officers. Dao, a pulmonologist, refused to leave his seat when directed because he needed to see patients the following day. In the process of removing him, the security officers struck his face against an armrest, then dragged him - bloodied, bruised, and allegedly unconscious – by his arms down the aircraft aisle, past rows of onlooking passengers. The incident is widely characterized by critics – and later by United Airlines itself – as an example of mishandled customer service.

<span class="mw-page-title-main">Kiwi.com</span> Czech online travel agency

Kiwi.com is a Czech online travel agency founded by Oliver Dlouhý and Jozef Képesi in 2012. Kiwi.com provides a fare aggregator, metasearch engine and booking for airline tickets and ground transportation. Its ticket search features Kiwi.com’s "virtual interlining" concept – itineraries combined from over 750 carriers, including many that do not usually cooperate in online bookings.

<span class="mw-page-title-main">Breeze Airways</span> Low-cost airline of the United States

Breeze Airways, legally Breeze Aviation Group, Inc., is an American low-cost airline headquartered in Cottonwood Heights, Utah. The airline was founded by David Neeleman, who previously co-founded Morris Air, WestJet, JetBlue, and Azul Linhas Aereas. Breeze's operations launched on May 27, 2021, with its inaugural flight from Tampa International Airport to Charleston International Airport.

In tourism, reconfirmation is a contractual requirement that the traveller must explicitly re-notify to the seller that they still intend to use their reservation. If the traveller fails to reconfirm, their reservation might be cancelled. The term is mostly used in commercial aviation.

References

  1. "CONTRACT OF CARRIAGE Definition & Legal Meaning". Black's Law Dictionary (2nd ed.). Retrieved January 24, 2023.
  2. "CONDITIONS OF CARRIAGE Definition & Legal Meaning". Black's Law Dictionary (2nd ed.). Retrieved January 24, 2023.
  3. Todd, P., Carriage contracts, updated 3 May 1997, archived 14 December 2010, accessed 1 October 2023
  4. "Southwest: Breakdown is now an act of God". Arizona Daily Star . July 24, 2010. Retrieved 2010-07-27.
  5. "Bumping & Oversales". U.S. Department of Transportation . April 15, 2021. Archived from the original on November 15, 2022. Retrieved November 17, 2022.
  6. US DOT, Passengers Boarded and Denied Boarding by the Largest U.S. Air Carriers
  7. "United bumps more passengers than any other large American airline". The Economist. April 11, 2017. Retrieved April 12, 2017.
  8. Zhang, Benjamin (April 10, 2017). "How airlines like United choose who to kick off a flight". Business Insider. Business Insider Inc. Retrieved April 12, 2017.
Individual airlines' contracts