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THIRTEBNTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
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'04 hj:.; -4 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
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EXPLANATORY NOTE 
The Constitution, Article 16, Section 9, provides: 
The State shall protect consumers hom trade malpractice and from 
substandard or hazardous products. 
The Philippine airline industry has been growing by leaps and bounds as air travel 
becomes the preferred mode of transportation because it is the most convenient way of reaching 
a destination. At present, the number of airline passengers continues to multiply annually. 
But growth of the industry is not without a price. Simultaneous with the increase in 
passenger figures is resurgence in the number of problems faced by the airline passenger, 
Everyday, passengers are faced with difficulties, ranging from poor services, delay and 
cancellation of flights, baggage loss, disappearance of reservations, and many others. 
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This bill seeks to address these problems by establishing a national policy of fair 
treatment of airline travelers that prohibits unfair and deceptive practices and unfair methods of 
competition by air carriers. 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
First Regular Session 
OF THE PHILIPPINES 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
AIRLINE PASSENGERS 
ESTABLISHING A NATIONAL POLICY OF BASIC CONSUMER FAIR 
Be it enacted by the Senate and the Home of Representatives 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be lmown as the “Airline Passenger Fairness 
Act.” 
SECTION 2. Definitions. -For the purpose of this Act, the terms: 
(1) “Air Carrier” means any citizen of the Philippines who undertakes, whether 
directly or indirectly or by a lease or any other arrangement, to engage in air transportation. 
(2) “Air Transportation” means domestic, overseas, or foreign air transportation. 
(3) “Confirmed Reserved Space” means a space on a specific date and on a 
specific flight and class of service carrier which has been requested by a passenger and which the 
carrier or its agent has verified, by appropriate notation on the ticket or in any other manner 
provided by the carrier, as being reserved for the accommodation of the passenger. 
(4) ‘‘Foreis Air Carrier” means any person, not a citizen of the Philippines, who 
undertakes, whether directly or indirectly or by any other arrangement, to engage in foreign air 
transportation. 
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(5) “Secretary” means the Secretary of Transportation and Communications. 
(6) “Ticket Agent” means any person, not a carrier or a foreign air carrier and mot 
a bona fide employee of an air carrier or foreign air carrier, who, a s  principal ag , sells or 
offers for sale any air transportation, or negotiates for, or holds himself out by s licitation, 
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advertisement, or otherwise as one who sells, provides, furnishes, contracts or arranges for, such 
transportation. 
SECTION 3. Unfair and deceptive practices and unfair methods of competition. - 
(1) Duty Qf Secretary - On the initiative of the Secretary of the complaint of an 
air carrier, foreign air carrier, or ticket agent, and if the Secretary considers it is in the public 
interest, the Secretary may investigate and decide whether an air camer, foreign air carrier, or 
ticket agent has been engaged in an unfair or deceptive practice or an unfair method of 
competition in air transportation or the sale of air transportation. If the Secretary, after notice 
and opportunity for a hearing, finds that an air carrier, foreign air carrier, or tick t agent is 
engaged in a n unfair or deceptive practice or an unfair method of competition, th Secretary 
shall order the air carrier, foreign air carrier, or ticket agent to stop the practice or meth d. 
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(2) Specific Practices - For purposes of subsection (l), the terms ‘unfair or 
deceptive practice’ and ‘unfair method of competition’ include an air carrier’s failure - 
(A) to inform a ticketed passenger, upon request, whether the flight on 
which the passenger is ticketed is overloaded; 
(B) to permit a passenger’s holding a confirmed reserved space on a flight 
to use portions of that passenger’s ticket for travel, rather than the entire ticket, 
regardless of the reason any other portion of the ticket is not used; 
(C) to deliver a passenger’s checked baggage within twenty-four (24) 
hours after arrival of the flight on which the passenger traveled and on which the 
passenger checked the baggage, except for reasonable delays in delivery of such 
baggage; 
(D) to provide a consumer full access to all fares for that carrier, regardless 
of the technology the consumer uses to access the fares if such information is 
requested by that consumer; 
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(E) to provide notice to each passenger holding a confirmed reserved 
space on a flight with reasonable prior notice when a schedule flight will be 
delayed for any reason (other than reasons of national security). 
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(F) To inform the passenger accurately and truthfully of the reason for the 
delay, cancellation or diversion of a flight; 
(G)To refund the full purchase price of an unused ticket if the passenger 
requests a refund within forty-eight (48) hours after the ticket is purchased; 
(H)To disclose to consumer information that would enable them to make 
informed decisions about the comparative value of frequent flyer programs among 
airlines, including - 
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- .(i) the number of seats redeemable on each flight; and 
(ii) the percentage of successful and failed redemptions on each 
airline and on each flight. 
SECTION 4. Report. - The Secretary shall include information about violations of 
section (3) by air carriers in Air Travel Consumer Report which shall be published 
the Department of Transportation and Communications, 
SECTION 5. Implementing Rules and Regulations. - Within ninety (90) days after the 
enactment of this Act, the Secretary, in consultation with the Air Transportation Office and the 
Civil Aeronautics Board shall make rules and regulations implementing the provisions of this 
Act. 
SECTION 6. Penalties. - Any violation of section (3) of this Act shall result to a 
suspension of the certificate of public convenience of the domestic carrier, or the license to 
operate of a foreign air carrier, or a fine of One Hundred Thousand Pesos (PlOO,OOO.OO), or both, 
In case of grave and repetitive violations, the penalty shall be revocation of the certificate 
of convenience of the domestic carrier or the license to operate of a Foreign Air Office and the 
Civil Aeronautics Boardlzhall have conducted a hearing into the manner. 
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SECTION 7. Separability CZause. - If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision shall remain valid and subsisting. 
SECTION 8. Repealing Clause. - Any law, presidential decree, issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
with, the provisions of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved. 
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