G 
13TH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
, . . 
SENATE 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
The Constitution, Article 16 provides: 
Section 9. The State shall protect consumers from 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 fastest and 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 a resurgence in the number of problems faced by the airline passenger. 
Everyday passengers are faced with difficulties, ranging from poor service, delay and 
cancellation of flights, baggage loss, disappearance of reservations, and many others. 
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. 
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I .  
I 
13TH CONGRESS OF THE 
REPUBLIC OF THE PHILIFPINES 
First Regular Session 
SENATE ' 
S. NO. 
59: 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
AN ACT ESTABLISHING A NATIONAL POLICY OF BASIC CONSUMER FAIR 
TREATMENT FOR AIRLINE PASSENGERS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled. 
SECTION 1. Short Title: This Act shall be known as the "Airline Passenger Fairness Act." 
SECTION 2. Definitions. For the purposes of this Act, the term 
(a) "Air carrier" -any citizen of the Philippines who undertakes, whether directly or 
indirectly or by a lease or any other arrangement, to engage in air transportation. 
(b) "Air transportation" means domestic, overseas, or foreign air transportation. 
(c) "Confirmed Reserved Space" means a space on a specific date and on a specific flight 
and class of service of a 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. 
(d) "Foreign Air Carrier" means any-person, not a citizen of the Philippines, who 
undertakes, whether directly or indirectly or by lease or by any other arrangement, to engage in 
foreign air transportation. 
(e) "Secretary" means the Secretary of Transportation and Communications. 
(f) "Ticket agent" means any person, not an air carrier or a foreign our carrier and not a 
bona fide employee of an air carrier Qr foreign air carrier, who, as principal agent, sells or offers 
for sale any air transportation, or negotiates for, or holds himself out by solicitation, 
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. 
(a) Duty of the Secretary -- On the initiative of the Secretary or 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 carrier, foreign 
air carrier, or ticket agent has been or is engaged in an unfair or deceptive practice or an 
unfair method of competition v 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 ticket agent is engaged in an unfair or deceptive practice or an unfair 
method of competition, the Secretary shall order the air carrier, foreign air carrier, or 
ticket agent to stop the practice or method. 


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(b) Specific Practices -- For purposes of subsection (a), the terms 'unfair or deceptive 
practice and 'unfair method of competition' include, an air carrier's failure -- 
(1) To inform a ticketed passenger, upon request, whether the flight on which the 
passenger is ticketed is oversold; 
(2) To permit a passenger 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; 
(3) To deliver a passenger's checked baggage within 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; 
(4) To provide a consumer fill access to all fares for that air carrier, regardless of the 
technology the consumer uses to access the fares if such information is requested by that 
consumer; 
(5) To provide notice to each passenger holding a confirmed reserved space on a flight 
with reasonable prior notice when a scheduled flight will be delayed for any reason (other 
than reasons of national security); 
(6) To inform passengers accurately and truthfully of the reason for the delay, 
cancellation or diversion of a flight; 
(7) To refund the full purchase price of an unused ticket if the passenger requests a refund 
within 48 hours after the ticket is purchased; 
(8) To disclose to consumers information that would enable them to make informed 
decisions about the comparative value of frequent flyer programs among airlines, 
including - 
(A) The number of seats redeemable on each flight; and 
(B) The percentage of successful and failed redemption on each airline and on 
each flight. 
SECTION 4. Report. The Secretary shall include information about violations of section 
3 by air carriers in- an Air Travel .Consumer Report which shall be published monthly by the 
Department of Transportation and Communications . 
SECTION 5. Implementing Rules and Regulations. Within 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 P100,000.00, or both. 
In case of grave and repetitive violations, the penalty shall be a revocation of the certificate 
of public convenience of the domestic carrier or the license to operate of a foreign air carrier, 
which shall be imposed after the Secretary, in coordination with the Air Transportation Office 
and the Civil Aeronautics Board, shall have conducted a hearing into the matter. 
SECTION 7. Separability Clause. If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 


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SECTION 8. Repealing Clause. Any law, presidential decree or 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. 
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SECTION 9. Effectivity Clause. This Act shall take effect fifteen (1 5) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved.