With the rapid development of international aviation industry and growing popularity of traveling by air, the protection of passengers, carriers and other involved parties’ interest are respectively emphasized by each party. Disputes and conflicts arise out of numerous and different state laws and regulations when defining which party shall be held responsible. Warsaw Convention is the first international treaty that unified certain rules relating to international carriage by air, and after its adoption, it has been amended by several modifications and amendments. The Montreal Convention is the beginning of a new era, which modernizes most terms of the Warsaw Convention, and balances the interests between carrier and passenger. China is a major role in international aviation transport and it is also a party of both the Warsaw Convention and the Montreal Convention. This article focus on addressing the carrier’s liability rules in international aviation transport, analyzes China’s current civil aviation legal system, and puts forward advice on modernizing China’s current civil aviation legal regime. The study starts from a general introduction of the history of the international aviation law. From the first adopted international aviation carriage treaty, the Warsaw Convention, its subsequent amendments and protocols, to the adoption of a brand new treaty, the Montreal Convention. The article further analyzes the liability rules, compensation regime and liability limits in the Montreal Convention. It addresses the development of liability rules form presumed liability to absolute liability. It also compares the major differences between the Warsaw System and the Montreal Convention regarding the mentioned issues. The Article briefly reviews the development of China’s civil aviation law, introduces the carrier’s liability regime in the currently civil aviation law and analyzes the conflicts exist between domestic laws, and international treaties. It explores the application of private international aviation law regarding death and bodily injury in foreign-related civil aviation transport. The Article gives assessment of the current Civil Aviation law and concludes the remaining defects in respect of liability rules. The article further puts forward suggestions to modify the liability rules of China’s civil aviation law.