Earlier quoted context omitted.
> liable to replace passengers' luggage Aren’t they? AFAIK it’s standard (if not required?) for airlines to have insurance which includes passenger legal liability. Were there any recent crashes where passengers weren’t compensated? e.g. after US Airways 1549 everyone received at minimum $5k (or higher depending on damages) for lost luggage. edit: https://www.law.cornell.edu/cfr/text/14/205.5
In general the airlines just ask you to leave your luggage. If they were legally obliged to replace all your items, they would inform you of such. On international flights, an airline is liable for up to $1700 per the Montreal Convention. This might cover say half of one's laptop, which no matter how stupid it sounds, makes taking your luggage with you the only financially sensible choice in a crash (unless you have…
$3400 is a pretty pricey laptop for someone short on cash.
Also, am I correct in understanding that these requirements are the base requirement for any crash and don't actually absolve the airline of the full liability in case they are found to be responsible for the crash?