Abstract: The ultra-hazardous liability of civil aircraft is stipulated by both General Principles of Civil Law and Tort Law. It is a controversial question on both theoretical and practice level as to whether the damage of air passengers is fallen into the scope of ultra-hazardous liability of civil aircraft clause. By analyzing from the perspective of systemic explanation method of law, policy stance behind the ultra-hazardous liability and nature of air carrier liability, it is concluded that only third party who sustained damage by the operation of civil aircraft shall be compensated according to the ultra-hazardous liability clauses. When dealing with the compensation of ground damage, conflicts may arise between Article 71 of Tort law and Article 157 of Civil Aviation Law. Since Article 71 of the Tort Law sustains basic change as to the constitution of liability, it shall prevail the application of Article 157 of Civil Aviation Law.