The parent company of Germanwings airline and its insurers have put aside $300m to cover compensation to the families of those killed in the Alps crash.
The co-pilot of the Germanwings plane is thought to have deliberately flown the aircraft into the mountainside, killing himself and 149 others on board.
Lufthansa has already paid 50,000 euros of initial financial support to the families of the air crash victims.
An international agreement drawn up in 1999 ruled that airlines be made liable for the deaths or injuries of their passengers. The treaty, called the Montreal Convention, also placed a limit on the compensation an airline is obliged to pay in the event of an air disaster. The legislation does not apply to crew members.
Up to £105,000 should be given to families if they can prove the economic damage and loss of earnings over the victim’s lifetime is equal to or more than that amount. Rules about economic losses may affect the families of the German schoolchildren who were on the flight, as they were not receiving an income at the time.
The limit would indicate that the compensation paid by Lufthansa should reach around £20m, but the unusual details of the crash mean the overall amount awarded is expected to be much higher than that of other air disasters.
The figures may also differ depending on the home country of each victim.
The US courts, for example, can award compensation to victims’ families for loss of support and emotional suffering. European countries such as Britain and Germany, however, have no equivalent law and offer compensation only for economic losses.
According to the Montreal Convention, families can bring their own claims against the airline, and the details of the crash – including the fact that the crash was caused by an employee – may mean Lufthansa could find it difficult to dispute them if this occurs.
The co-pilot is reported to have suffered from mental health problems that may have played a role in his decision to crash the plane. The airline, therefore, may be accused of acting negligently in their role as employers for failing to pick this up during the screening process and throughout his employment.
If the airline was to dispute its liability, it may also be claimed that the policy allowing a pilot to be alone in the cockpit during the flight played a role in the crash. Several airlines, including the UK’s EasyJet, have adopted a two-pilot policy in response to the crash.
It is unlikely, however, that any claims will go to trial, as the airline is not expected to deny liability. It has announced that helping the affected families is its main priority.