Et ATIVES

WOUd. YF 2 PRE

RECENLD
SEVENTEENTH CONGRESS OF THE REPUBLIC) 94 AUG 2018
OF THE PHILIPPINES ) pare: 24H
First Regular Session ) TIME seth)
eye
HOUSE OF REPRESENTATIVHS
HB. No. REOIETRATION UNIT

1 WOE Y SERVICE

Introduced by Representative Harry L. Roque Jr

AN ACT
ESTABLISHING A NATIONAL POLICY OF BASIC CONSUMER FAIR.
TREATMENT FOR AIRLINE PASSENGERS
EXPLANATORY NOTE
The Constitution, Article 16, Section 9, provides:

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 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. Every day, passengers are faced with difficulties, ranging from poor services,
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 travellers that prohibits unfair and deceptive practices and unfair

methods of competition by air carriers.’

(vy

HARRY L, ROQUE JR.

' This bill was originally during the Fifteenth Congress, First Regular Session, and refiled by Senator
Miriam Defensor Santiago in the Sixteenth Congress, Third Regular Session.


HOUSE YF REPRESENTATIVES
RECE

SEVENTEENTH CONGRESS OF THE REPUBLIC. ) oa ite. Big fa
OF THE PHILIPPINES. y
First Regular Session )

HOUSE OF REPRESENTATI
HB.No._3279

Introduced by Representative Harry L. Rogue Jr

AN ACT
ESTABLISHING A NATIONAL POLICY OF BASIC CONSUMER FAIR
‘TREATMENT FOR AIRLINE PASSENGERS
Be it enacted by the Senate and the 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. Definition of Terms. - For the purpose of this Act. the term:

(A) "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

(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 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.


10

ul

12

19

20

2

(D) "Foreign 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.

(E) "Secretary" means the Secretary of Transportation and Communications.

(F) "Ticket Agent” means any person, not a carrier or a foreign air carrier and not
a bona fide employee of an air carrier or 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 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 carrier, 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 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

(B) Specific Practices. - For purposes of paragraph (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 overloaded;

(2) 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;

(3) To deliver a passenger's checked baggage within twenty-four (24) hours
after arrival of the flight on which the passenger travelled and on which the
passenger checked the baggage, except for reasonable delays in delivery of such
baggage;

(4) 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:

(5) 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.

(6) To inform the passenger 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 pas:

requests a refund within forty-eight (48) hours after the ticket is purchased;

w


6

(8) To disclose to consumer 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 redemptions on each

airline and on each flight.

SECTION 4. Report. - The Secretary shall include information about violations of
Section by air carriers in Air Travel Consumer Report which shall be published monthly

by 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
(P100,000.00), 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 Board, shall have conducted a hearing into the

manner.

SECTION 7. Separability Clause. - 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 the Official Gazette or in two (2) newspapers of general circulation.

Approved,