Although more than a month has already passed since the AirAsia QZ8501 air crash, related parties, including the government, the National Search and Rescue Agency, even the military, are continuing their efforts to find plane debris and the bodies of those still missing.
As the same time as the search and rescue process continues, relatives of the victims are still waiting for compensation payments. The Financial Services Authority has said that it will be monitoring the compensation process for all victims.
In the midst of these events, an interesting opinion has come from Prof. K. Martono, an aviation law expert from Universitas Tarumanegara. Mr. Martono contends that Law No. 1 of 2009on Aviation (Aviation Law) and its implementing regulations do not apply to the AirAsia QZ8501 accident.
Based on this view, AirAsia is not under any obligations to fulfill to compensate the victims in accordance with the Aviation Law as instructed by the governments. Further explaining his reasoning, Mr. Martono says that there are two applicable regimes in aviation law, namely domestic and international flight regimes.
“There are two regulatory systems on aviation law,” said Mr. Martono during a discussion organized by the Aviation Law Society, in Jakarta, on Wednesday.
Specific to the domestic flight regime, aviation companies in Indonesia must comply with the Aviation Law and its implementing regulations, as well as Law No. 33 of 1964on Mandatory Accident Insurance Fund for Passengers.
Meanwhile for international flights, the regulatory framework is covered by eleven international conventions ratified by Indonesia, including the 1929 Warsawa Convention, t hTokyo Convention, and the Den Haag Convention.
Because QZ8501 flight was an international flight, according to Mr. Martono the Aviation Law does not apply. Consequently, the compensation regime under Minister of Transportation Regulation No. PM. 77 of 2011on Liability of Air Freight Carriers (Ministerial Regulation), also does not apply to the case.
Mr. Martono’s view is the polar opposite to the instruction from the House of Representative. The Indonesian lawmakers have said that AirAsia must compensate each victim approximately IDR 1,250 billion, as provided for under the Ministerial Regulation. In response to this instruction, Sunu Widyatmoko, President Director of PT Indonesia AirAsia promised to comply with the Ministerial Regulation.
“If AirAsia is willing to compensate each victim for IDR 1,250 billion it is their call, however, such compensation is not required under the law,” said Mr. Martono who was also served on the Aviation Law’s drafting team
Warsaw Convention
Under the Warsaw Convention, it is not mandatory for an aviation company to insurance their passengers. The common practice is, however, all aviation companies in Indonesia appoint a third party to cover insurance for their passenger.
“This is due to the high potential risk if passengers are not insured. In the event of an accident, aviation companies may go into liquidation if they do not insure their passengers,” added Mr. Martono.
Despite the issue of whether or not passengers are covered by insurance, Mr. Martono explained that the Warsaw Convention obliges aviation companies to compensate their passenger in the event of accident.
(For more information on insurance and compensation of scheduled commercial flight accident, see ILD No. 389).
Although more than a month has already passed since the AirAsia QZ8501 air crash, related parties, including the government, the National Search and Rescue Agency, even the military, are continuing their efforts to find plane debris and the bodies of those still missing.
As the same time as the search and rescue process continues, relatives of the victims are still waiting for compensation payments. The Financial Services Authority has said that it will be monitoring the compensation process for all victims.
In the midst of these events, an interesting opinion has come from Prof. K. Martono, an aviation law expert from Universitas Tarumanegara. Mr. Martono contends that Law No. 1 of 2009on Aviation (Aviation Law) and its implementing regulations do not apply to the AirAsia QZ8501 accident.
Based on this view, AirAsia is not under any obligations to fulfill to compensate the victims in accordance with the Aviation Law as instructed by the governments. Further explaining his reasoning, Mr. Martono says that there are two applicable regimes in aviation law, namely domestic and international flight regimes.
“There are two regulatory systems on aviation law,” said Mr. Martono during a discussion organized by the Aviation Law Society, in Jakarta, on Wednesday.
Specific to the domestic flight regime, aviation companies in Indonesia must comply with the Aviation Law and its implementing regulations, as well as Law No. 33 of 1964on Mandatory Accident Insurance Fund for Passengers.
Meanwhile for international flights, the regulatory framework is covered by eleven international conventions ratified by Indonesia, including the 1929 Warsawa Convention, t hTokyo Convention, and the Den Haag Convention.
Because QZ8501 flight was an international flight, according to Mr. Martono the Aviation Law does not apply. Consequently, the compensation regime under Minister of Transportation Regulation No. PM. 77 of 2011on Liability of Air Freight Carriers (Ministerial Regulation), also does not apply to the case.
Mr. Martono’s view is the polar opposite to the instruction from the House of Representative. The Indonesian lawmakers have said that AirAsia must compensate each victim approximately IDR 1,250 billion, as provided for under the Ministerial Regulation. In response to this instruction, Sunu Widyatmoko, President Director of PT Indonesia AirAsia promised to comply with the Ministerial Regulation.
“If AirAsia is willing to compensate each victim for IDR 1,250 billion it is their call, however, such compensation is not required under the law,” said Mr. Martono who was also served on the Aviation Law’s drafting team
Warsaw Convention
Under the Warsaw Convention, it is not mandatory for an aviation company to insurance their passengers. The common practice is, however, all aviation companies in Indonesia appoint a third party to cover insurance for their passenger.
“This is due to the high potential risk if passengers are not insured. In the event of an accident, aviation companies may go into liquidation if they do not insure their passengers,” added Mr. Martono.
Despite the issue of whether or not passengers are covered by insurance, Mr. Martono explained that the Warsaw Convention obliges aviation companies to compensate their passenger in the event of accident.
(For more information on insurance and compensation of scheduled commercial flight accident, see ILD No. 389).