In accordance with the Supreme Court ruling on the person who is entitled to claim damages in case of loss of cargo during transportation in international air cargo transport, this study considered the suitable trade terms(Incoterms) for international air cargo transport from the viewpoint of facilitating trade transaction. Until the cargo arrives, the seller has the right to the cargo so that the seller can exercise the right of control. Therefore, C and D terms are suitable as trade terms. From the point of view of trade facilitation, which can carry out the sales contract smoothly like this case that the seller who made transport and insurance contracts supply such substitutes to the buyer and follows procedures to claim the damage to carrier and also to receive insured amount from insurance company, the D terms such as DAT, DAP and DDP are suitable. Especially, considering the time for ownership transfer(the time for cargo arrival), DAT, which delivers the cargo and transfers risk at the terminal of import country, can be an optimal condition. In addition, regardless of trade terms, in air cargo transport, under such situations that the insurable interest is held by the seller until the arrival of the cargo, the buyer has not owned the cargo until the goods have been delivered to the buyer, and the seller has the right of control to the cargo, if the cargo was lost during transportation, it is reasonable for the seller to manage the accident actively. For this reason, it is necessary to modify the reverse side clause of air waybill that the person who has a right to claim damages is the person entitled to delivery to the person given insurable interest to cargo.