U.S. CLEARS WAY FOR IATA AGREEMENT

GENEVA-The U.S. Department of Transportation on Jan. 8 finally backed down on conditions in one of three agreements that waive airlines' passenger liability limits for international flights.

As a result, the International Air Transport Assn. will recommend next month that its airline members enforce IATA's Intercarrier Agreement on Passenger Liability, which waives the liability limitation found in the Warsaw Convention.

The limitation has been $75,000 per passenger on flights to, from and through the United States unless willful misconduct can be proved. Eighty airlines around the world have signed this agreement, which could be enforced retroactively to mid-November 1996.

IATA also will suggest airline members agree to an IATA implementation agreement, which would impose strict liability up to 100,000 Special Drawing Rights ($142,210), said Lorne S. Clark, general counsel and secretary of the association.

If it is approved at a meeting in Miami early next month, the 47 worldwide airlines that signed the implementation agreement could enforce it by mid-February. The implementation agreement defines what conditions should be in a passenger's conditions of carriage.