Amanded Law on Obligational and Property-Law Relations in Air Transport (ZOOSPOVS)

Serbia’s Air Transport Law has been amended to introduce clearer liability rules, updated limits, and full alignment with the Montreal Convention.

The Law on Obligational and Property-Law Relations in Air Transport (hereinafter: ZOOSPOVS) regulates:

• contractual relations of participants in air transport – carriage of passengers, baggage, and cargo;
• performance of other commercial activities in air transport;
• aircraft lease agreements;
• insurance contracts in air transport;
• relations arising from damage caused by an aircraft in flight to third parties and property on the ground;
• property-law relations concerning an aircraft (ownership and security rights over an aircraft);
• enforcement and security procedures relating to an aircraft;
• court jurisdiction regarding enforcement and security.

New Law Amending and Supplementing ZOOSPOVS

The new Law Amending and Supplementing the Law on Obligational and Property-Law Relations in Air Transport aims to eliminate identified deficiencies in the existing text of the law and enable more efficient application and more precise interpretation.

Another reason for adopting the amendments to ZOOSPOVS is the alignment with the Convention for the Unification of Certain Rules for International Carriage by Air (hereinafter: Montreal Convention). In accordance with Article 24 of the Montreal Convention, the International Civil Aviation Organization (ICAO) regularly revises the established limits of liability of air carriers toward passengers and their baggage, and for damage arising from destruction, loss, damage, or delay in the carriage of goods or cargo.

Therefore, national legislation must be harmonized with this revision.

All Amendments to ZOOSPOVS

1) Who qualifies as an airport operator

An airport operator is now defined as any legal or natural person that manages an airport and holds a certificate, usage permit, or approval for airport operations.

Practically, the definition is now broader, making it easier to identify the operator and establish obligations and misdemeanor liability of the specific entity.

2) Explicit application of the Montreal Convention to domestic transport as well

Article 26 now clearly states that the liability of an air carrier toward passengers and baggage is governed by the provisions of this law and the Montreal Convention, both for international and domestic air transport.

Thus, there is no longer any doubt that the same “Montreal” standards apply even to domestic flights (e.g., Belgrade–Niš): strict liability, deadlines, advance payments, etc.

3) New standardized notice on air carrier liability

Air carriers are now required to make available to passengers a standardized extract on liability rules, which forms an integral part of the law. It is explicitly stated that the rules are based on the Montreal Convention (1999) and ZOOSPOVS.

The extract is extensive and precise. Key elements include:

1. Death or bodily injury of a passenger

There are no financial limits on the air carrier’s liability. Up to 151,880 Special Drawing Rights (SDR), the carrier may not contest a claim. Above that amount, the carrier may be exonerated if it proves it was not negligent or at fault. This represents a combination of strict and fault-based liability under the Montreal model.

2. Advance payment

Within 15 days from identification of the person entitled to compensation, the carrier must make an advance payment to meet that person’s immediate economic needs.
In the event of death, the advance cannot be less than 16,000 SDR.

3. Passenger delay

The carrier’s liability is limited to 6,303 SDR, unless it proves that all reasonable measures to avoid the damage were taken.

4. Baggage delay

Liability is limited to 1,519 SDR, with exoneration only if all reasonable measures to prevent the delay were taken.

5. Destruction, loss, or damage to baggage

The liability limit is 1,519 SDR.
For checked baggage, liability is strict unless the item had inherent defects. For unchecked baggage, the carrier is liable only if at fault.

6. Higher limits of liability

A passenger may declare a higher value limit at check-in by submitting a special declaration and paying an additional amount.

7. Complaints related to damaged baggage

Strict deadlines apply:

• within 7 days from receipt of damaged baggage that was not delayed;
• within 21 days from receipt of delayed baggage.
  Failure to meet these deadlines results in loss of the right to compensation.

8. Actual and contractual carrier

If the carrier performing the carriage is not the same as the contracting carrier, the passenger may file a complaint or compensation claim against either of them.
If the travel document indicates the name or code of a carrier, that entity is considered the contracting carrier.
This is important for wet-lease arrangements.

9. Time limit for filing a lawsuit

A claim may be filed within 2 years from the date the aircraft arrived or should have arrived.

Thus, all air carriers must harmonize the content of their “notices” (website, tickets, conditions of carriage) and internal procedures regarding advance payments and claim handling.

4) Increased compensation limits

The amendments introduce more favorable compensation for passengers, raising the previous limit of 19 SDR to 26 SDR.

5) New authority to issue misdemeanor orders

The amendments grant the competent authority—the civil aviation inspector—the power to issue misdemeanor orders immediately, not only to initiate standard misdemeanor proceedings.

6) New misdemeanor regime for air carriers and airport operators

The amendments significantly tighten the misdemeanor framework.

1. Misdemeanor fines ranging from 100,000 to 2,000,000 RSD may be imposed if the responsible entity (actual air carrier and/or airport operator):

• fails to provide assistance and compensation in cases of flight cancellation, delay, denied boarding, or downgrade;
  • fails to inform passengers about their rights (extracts, written notices, online/phone ticket sales);
  • fails to give priority to persons with disabilities/reduced mobility or unaccompanied children;
  • fails to provide adequately trained staff;
  • fails to respond to complaints within 60 days;
  • and in various other situations.

2. Fixed fines of 300,000 RSD may be imposed if the responsible entity (actual air carrier and/or airport operator):

• improperly informs passengers;
  • fails to fulfill obligations related to downgrade;
  • fails to ensure designated arrival/departure points for persons with disabilities;
  • fails to maintain separate accounts for assistance to such passengers, etc.

Statute of limitations for misdemeanors

A misdemeanor proceeding cannot be initiated if three years have passed since the offense was committed. The statute of limitations is interrupted by any procedural action, but expires absolutely after six years.

Conclusion

The Law Amending and Supplementing the Law on Obligational and Property-Law Relations in Air Transport introduces a comprehensive and precise liability regime for air carriers toward passengers and their baggage, based on the Montreal Convention, with clearly defined limits, deadlines, and procedures.

At the same time, the misdemeanor framework becomes significantly stricter, and the obligations of air carriers and airport operators are far more precisely defined.

For air carriers, this means additional obligations:
• more detailed and harmonized general conditions of carriage,
• adjustments to internal procedures for passenger rights,
• mandatory publication of the liability extract across all sales and information channels,
• increased care when handling persons with disabilities and reduced mobility.

For passengers, the amendments strengthen their rights and carrier liability, providing:
• greater protection,
• higher compensation limits,
• clearer deadlines and accessible information,
• a predictable and internationally harmonized system.

Whether you are an airline or a passenger, consulting a knowledgeable professional can be valuable in interpreting your obligations and/or rights.

Law Firm Petrović Mojsić & Partners

Related articles: 

Enforcement and Security over Aircraft – procedure in Serbia

Pledge over Aircraft in Serbia

Aircraft Leasing under the Law of the Republic of Serbia and International Sources