China’s Civil Aviation Law is applicable to the domestic air carriers’ liability for passengers’ damage. Through the comparison with the 1999 Montreal Convention in terms of the modernization and integration of aviation transportation, it is found that China's Civil Aviation Law lags behind seriously in the liability system of the air carriers. In order to achieve the internationalization and localization the legislation of civil aviation carriers’ liability for the passengers’ damage in China, the existing problems of China's air carriers’ compensation liability system and the current development of China’s civil aviation transportation should be analyzed, based on which China's Civil Aviation Law should be revised and perfected.