Thanks for that Mountainbear. I was not implying that Bear was wrong about US law, just that UK law is different and as none of the parties involved (as far as I know) have a US connection(excluding SLF) then UK or Aussie law is more likely to apply.
Whilst SLF will have a contract with the carrier they will not have one with the manufacturer or engine supplier and then in the UK the law of tort will apply.
JFZ90 mentions fatallities and in that case then the relatives would be party to any action against the manufacturer or engine supplier and if they were US citizens then it is (I would think) more likely that contract law would not be appropiate.
From what you say Mountainbear maybe the best place for US relatives to bring any case would be the USA.
JFZ90 has asked an interesting question and one thing am quite confident about is that there are many possible answers. Maybe that's why our legal friends in every country will always make money!
Regards
Nick