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Lufthansa could face "unlimited" liability

Under international treaties, German flag carrier Lufthansa could face huge compensation claims after one of its pilots apparently intentionally crashed an A320 into the Alps on Tuesday:

Under a treaty governing deaths and injuries aboard international flights, airlines are required to compensate relatives of victims for proven damages of up to a limit currently set at about $157,000 — regardless of what caused the crash.

To avoid liability, a carrier has to prove that the crash wasn't due to "negligence or other wrongful act" by its employees, according to Article 21 of the 1999 Montreal Convention.

That would be a difficult argument to make when a pilot intentionally crashes a plane into a mountain, and one that Lufthansa would likely avoid as it could further damage the brand, [German aviation lawyer Marco] Abate said.

Abate said that in German courts, damages for pain and suffering typically don't exceed 10,000 euros ($11,000). However, Lufthansa could face much bigger claims for loss of financial support. If the breadwinner of a family was killed in a plane crash, the survivors can sue for years of lost income, Abate said.

The difference between U.S. and European procedures might be a problem for Lufthansa. In the U.S., pilots are never left alone in the cockpit; in Europe—at least until this week—there was no comparable practice.

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