Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _7937

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

There are 50 million Filipino flyers in 2018" without one codified bill of rights to
protect them from various abusive practices of domestic and international airlines.
Flyers regularly complain of unreasonable flight delays, mishandled or lost baggage,
overbooking, rebooking, ticket refunds, cancelled flights, misleading advertisements
on fares, among many others. While there are pertinent provisions specifically
addressing such concerns of flyers, these provisions are dispersed in different and
often outdated local laws, and international conventions.

Due to the alarming number of complaints by airline passengers, the
Department of Transportation and Communication (DOTC), together with the
Department of Trade and Industry (DTI), approved Joint DOTC-DTI Administrative
Order No. 1 Series of 2012, otherwise known as the “Air Passenger Bill of Rights,”
which took effect on Dec. 21, 2012. Among others, this issuance seeks to provide
full, clear and accurate information to the passengers on the services offered by air
carriers and the terms and conditions of the contract of carriage. While helpful, this
administrative order neither has the force of law nor penal provisions to provide full,
consistent and imperative protection to our flyers. In response to this, this
Representation believes that it is high time that we institutionalize a much-needed
and long-awaited bill of rights for our air passengers.

Our bill urges the swift passage of the “Magna Carta for Air Passengers Act”
It echoes some of the pertinent provisions in existing laws, recognizes international
conventions on air carriage, and adds new provisions reflective of contemporary
practices and prices. Regulatory bodies are also compelled to review the existing
pecuniary penalties on abusive practices, and accordingly upgrade the same when
necessary.

* https://malaya.com.ph/business-news/business/air passenger-traffic-9


Air transportation is only bound to expand as it gets more accessible to
Filipinos, and more convenient with increased destinations and flights per day. In
fact, this year alone, the Civil Aeronautics Board (CAB) has already recorded a 9%
growth in air passenger traffic compared from last year. We can no longer allow
more Filipinos to suffer from any sort of exploitative airline practices without putting
in place an efficient system of remedies which awards them compensation for any
inconvenience, and compels airlines to provide services in good faith

In consideration of the foregoing premises, the passage of this bill is earnestly

sought.

_

Luis JUND /U/RAY” F. VILLAFUERTE, JR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. _7937

AN ACT
PROVIDING FOR THE MAGNA CARTA OF AIRLINE PASSENGERS, IMPOSING
OBLIGATIONS ON AIR CARRIERS, AND PENALIZING ACTS IN VIOLATION
THEREOF

Be it enacted by the Senate and the House of Representatives in Congress
assembled:

CHAPTER |
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known and cited as the "Magna Carta
for Air Passengers Act

SECTION 2. Declaration of Policy. ~ It is hereby declared the policy of the State to
promote the welfare of airline passengers and strengthen the regulatory framework
that will ensure safe, efficient, convenient, and secure services to the riding public in
civil aviation. The State shall pursue a policy mandating full disclosure of all aspects
relating to the contract of air carriage. The State shall adopt the generally-accepted
principles of relevant international laws to which the country is a signatory. Pursuant
thereto, the State shall penalize any act of air carriers which violates the rights of air
passengers as defined under this Act

SECTION 3. Definition of Terms. — As used in this Act:

a) Air Carrier refers to an airline providing transportation services in a contract
of air carriage;

b) Baggage refers to any personal property carried by the passenger which has
been checked-in with the airline. Off-loaded baggage refers to checked
baggage but has either not been put in or been subsequently removed from
the cargo hold of the carrier;

c) Cancellation refers to the act of calling off a flight. This shall include the
following instances:
1) Cancellation by the air carrier before the estimated time of departure
(ETD) whether or not the reason for the cancellation is due to the air
carrier's fault;


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2) Cancellation by the air carrier after an unduly long delay;
3) Cancellation by the passenger or a situation deemed cancelled as
provided under this Act

Check-in Deadline refers to a reasonable point in time before the published
ETD as may be prescribed by the Civil Aeronautics Board (CAB) at which a
passenger may physically present travel documents to the air carrier at the
latter's check-in counter.

Check-in Period refers to the time when the air carrier's check-in counters
are open for accepting and processing passengers checking in for their flights
which starts at two (2) hours before the ETD in international airports and in
airports designated by the Department of Transportation and Communications
(DOTC). In other airports, the check-in period shall start at least one (1) hour
before the ETD.

Confirmed Reserved Seat refers to a seat 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, as being reserved for the accommodation of the
passenger,

Convention refers to the applicable international agreement, convention, or
treaty on carriage of goods or persons by air

Delay deferment of a flight to a later time.. Terminal delay refers to a delay
that occurs while the passengers are still inside the terminal waiting for
boarding, while tarmac delay is a delay that occurs while passengers are
already on board the aircraft;

Denied Boarding refers to a situation where a passenger who has physically
presented travel documents pertaining to a confirmed seat reservation at the
proper time and place, and has fully complied with the carrier’s check-in
reconfirmation procedures, and the carrier's tariff requirement, was not
allowed to board the aircraft;

Denied Check-in refers to a situation where a passenger, who has physically
presented travel documents to an air carrier's check-in counter checked in at
the appointed area and at the appointed time, is denied or is not processed
for boarding a particular flight;

Fare refers to the payment in consideration for the carriage of a passenger
but shall not include charges for ancillary services. Regular fare is any fare
that is offered on a regular basis is non-discounted, and offers the advantage
of cancellation, changing flight time or schedule, rerouting or rebooking, by
the passenger. whether for a fee or penalty, or not. Promotional fare is any
fare that is generally lower than a regular fare and is offered for a specific
period. This includes offers of “no frills’ fare, wherein the non-essential
features for flights such as free food and drinks onboard flights have been


removed to keep the price low, and discounted fares which require prior
approval by the CAB;

|) Free Tickets refer to tickets provided by carriers to passengers, tickets
available for free to employees, and tickets claimed based on mileage, which
do not have confirmed status, are subject to space availability, and do not
qualify as either regular or promotional fare:

m) General Sales Agent means a person who is not a bona fide employee of an
air carrier, and who is authorized by the air carrier, by itself or through an
agent, sells or offers for sale any air transportation, or negotiates for, or holds
out by solicitation, advertisement or otherwise as one who sells, provides,
furnishes, contracts or arranges for, such air transportation

n)

Government Requisition of Space refers to a formal request by the
government or its agencies to an air carrier for the use off an aircraft, or any
part thereof, for regulatory, safety, security, and emergency purposes. Such
request shall be submitted by the requesting agency to the CAB which, in
turn, shall make a request to the air carrier concerned, detailing the number,
identities and affiliation of the persons requesting for space and date, time
and destination of the flight;

0) No Show refers to the failure of the passenger to appear at the check-in
counter within the check-in deadline or to show up at the boarding gate at the
time indicated on the boarding pass.

p) Non-scheduled Services refer to an arrangement where an aircraft has more
flexibility in terms of time, schedules, routes, and choices of airports and
similar operational characteristics subject to the approval of the Civil Aviation
Authority of the Philippines (CAAP) each time

q)

Overbooking refers to the practice by air carriers of selling confirmed
reserved seat beyond the actual seat capacity of the aircraft. This shall
include a situation wherein an air carrier downgrades an aircraft for grounds
other than safety or unforeseen operational reasons that results in the
bumping off of passengers;

1) Passenger refers to a person actually travelling by air A person who is
names in the flight ticket shall be considered a passenger for the purpose of
this Act;

Person with Disability or PWD refers to those who have long-term physical,
mental, or intellectual or sensory impairments, which in interaction with
various barriers, may hinder their full and effective participation in society on
an equal basis with others;

Philippine-based air carrier refers to an air carrier holding a Certificate of
Public Convenience and Necessity (CPCN) or a Temporary Operating Permit
(TOP) issued by the CAB for scheduled or non-scheduled services


u) Sales Promotion refers to the techniques intended for broad consumer
participation which contain promise of gain, such as prizes, in cash or in kind,
as reward for the purchase of a product, security, service or winning in a
contest, game, tournament, and other similar competitions which involve
determination of winner/s and which utilize mass media and widespread
media of information. It also means techniques purely intended to increase
the sales, patronage and goodwill of a product; and

v)

Scheduled Services refer to an arrangement wherein an air carrier follows a
fixed, regular, and published timetable and routes which does not have
flexibility in terms of time, schedules, routes and choices of airports and
similar operational characteristics

SECTION 4. Scope of Application. — This Act shall apply to all aspects of air
carriage for flights and portions of a flight, within the territory of the Philippines or
from the territory of the Philippines, operated by Philippine-based air carriers, flights
or portions of a flight from the territory of the Philippines operated by foreign air
carriers, as well as charter flights and the conduct of individual ticketing: Provided,
That the compensation provisions of this Act shall now apply to air carriers flying into
the territory of the Philippines if the laws of the country of origin provide similar or
higher compensation.

SECTION 5. Applicability of International Laws and Pertinent Conventions. — In
case of conflict between the provisions of this Act and the provisions of any treaty or
convention where the Philippines is not a signatory, the provisions of the latter shall
prevail. Where the Philippines is not a signatory, the provisions of any treaty or
convention shall have a suppletory effect in the implementation of this Act insofar as
the same are not contrary to the provisions herein contained

CHAPTER I
CONTRACT OF CARRIAGE BY AIR

SECTION 6. Contract of Air Carriage. — By the contract of air carriage, an air
carriage obliges itself to transport the passenger or one's baggage, if any, from one
place to another, through airspace, without any damage or injury upon the latter's
person, or loss, damage or unreasonable deterioration of his baggage, if any, and
when the passenger obliges oneseff to pay a just and reasonable air fare.

SECTION 7. Perfection of the Contract of Carriage. — The contract of air carriage
is perfected from the air carriage and the passenger gives their respective consent to
the said agreement. There is consent when the air carrier issues a confirmation of
airline ticket in favor of a passenger, who accepts and holds it in his/her possession,
with the corresponding full payment of the fare by said passenger


SECTION 8. Diligence Required of the Carrier — Air carriers, due to the nature of
air transportation, it being imbued with public policy and interest, are obliged to
observe extraordinary diligence in the performance of their obligations under the
contract of air carriage. Air passengers are required to observe extraordinary
diligence while the contract of air carriage is effective.

SECTION 9. Presumption of Negligence ~ In case of damage or injury to the
person of the air passenger, or loss, damage, or unreasonable deterioration of
his/her baggage, if any, the air carrier shall be presumed negligent, unless it proves
that it exerted extraordinary diligence to avert the same. Diligence observed in the
selection and supervision of employees shall not be a defense to rebut this
presumption. In the case of carriage of goods and baggage, the presumption of
negligence shall not be a defense to rebut this presumption. In the case of carriage
of goods and baggage, the presumption shall not apply if the loss, damage, or
unreasonable deterioration is caused or occasioned by any of the following

Flood, storm, earthquake, lightning, or other natural disaster or calamity
. Act of the public enemy in war, whether international or civil

Act or omission of the shipper or owner of the baggage/goods;

The character of the goods or defects in the packing or in the containers; and

Order or act of competent public authority

MaRONa

SECTION 10. Cancellation. — An air carrier may cancel a flight for any of the
following:

. Infrastructure limitation as certified by the CAAP;
Safety reasons due to a technical problem
Security reasons;
During the occurrence of a fortuitous event. The passengers affected may
avail such applicable remedies provided under this Act

BONa

SECTION 11. Overbooking. — Overbooking shall not be allowed for all air carriers.

SECTION 12. Construction. — In case of doubt, the contract of air carriage shall be
construed literally in favor of the passenger and strictly against the air carrier

CHAPTER Ill
RIGHTS AND OBLIGATIONS OF THE PASSENGERS:

A. RIGHT TO FULL AND TRUTHFUL INFORMATION OF THE CONDITIONS OF
THE CONTRACT OF CARRIAGE

SECTION 13. Clear, Truthful and Understandable Information — |n addition to the
information enumerated under Section 15 hereof, every passenger shall, before
purchasing any ticket for a contract of carriage, have the right to the full access and
fair and clear disclosure of information, in English and in Filipino, from an air carriage
or general sales agent on the following terms and conditions in the contract of
carriage:


a) Fare and other fees and ancillary charges (taxes, insurance, fuel
surcharge, seat reservation, etc)

b) Travel restrictions;

c) Baggage allowance and limitations

d) Check-in and boarding requirements and deadlines;

e) Air carrier's responsibilities and passenger's rights and compensation for
delayed and cancelled flights, and for death and injuries and lost, delayed
or damaged baggage:

f) Air carrier's liability limitations,

g) Procedures for claims against the carrier

h) Services and amenities provided by the air carrier; and

i) Other crucial and necessary conditions of the contract of carriage.

SECTION 14. Method of Disclosure. — An air carrier shall cause the disclosure
under the immediately preceding section to be printed on or attached to the
passenger ticket, boarding pass, or incorporate such terms and conditions of
carriage by reference.

Incorporation by reference means that the ticket for boarding pass shall clearly state
that the complete terms and conditions of carriage are available for perusal or review
in the air carrier's website, or in some other document that may be sent to or
delivered by post or electronic mail to a passenger upon request

In case of booking through a ticketing office or agent, the disclosures shall be
explained by the agent in a language that is easily understood by the purchaser.

In case of online booking, the air carrier must establish a system wherein a
purchaser is fully apprised of the required disclosures under this section twice prior
to the final submission of an online offer to purchase. The first disclosure shall
include the full information to which the passenger has a right of access and
disclosure. The second disclosure before the final submission of an online offer to
purchase shall substantially include the following message, in English and Filipino:

By confirming purchase of this ticket, you agree to the terms and conditions which
include:

a) Refund policy;

b) Rebooking policy;

c) No-show policy; and

d) Other important information specific to the ticket purchased

Sa pagbili ng ticket na ito, kayo ay sumasang-ayon sa mga kondisyon at restriksyon
kabilang na ang:

a) Panuntunan sa pagsasauli ng ibinayad
b) Panuntunan sa pagpalit ng tiket;

c) Panuntuanan sa hindi pagdating sa tamang oras; at
) Iba pang importanteng impormasyon ukol sa tiket


SECTION 15. Advertisements. — Advertisements of fares shall be clear, truthful
and not misleading and shall capacitate the passenger to make an informed
purchase or availment of the airline ticket such that the passenger fully understands
the consequences of purchasing such ticket

The advertisement of the promotional fares shall be made only after the same has
been approved by the CAB.

The following disclosures are required to be part of the airline advertisement in print
medium which shall occupy not less than thirty percent (30%) of the advertising
material:

a) Conditions and restrictions attached to the fare type:

b) Refund and rebooking policies: Government taxes and fuel surcharges;

c) Other fees and charges;

d) Contact details of the carrier which include phone numbers, websites,

emails, and online accounts;

Other information that is necessary to apprise the passenger of the

conditions and full price of the ticket which may include the

incorporation by reference of websites and other available information

portal or office where the passenger can read or ask the full terms and

conditions of the fare and the air passenger bill of rights; and

f) In case of promotional fares, the number of seats offered on a per
sector basis, the CAB permit or approval number and the duration of
the promo.

e)

B. RIGHT TO FAIR AND REASONABLE FARE AND TO THE FULL VALUE OF
THE SERVICE PURCHASED

SECTION 16. Right to Receive the Full Value of the Service Purchased. — A
passenger shall have the right to fair and reasonable fare and to receive the full
value of the services that they purchased. An air carrier shall not deny nor diminish
any service that an air passenger has paid for. However, an air carrier may upgrade
its services in favor of a passenger free of charge, subject to the consent of the
passenger.

This right includes the convenience on the part of the passenger during the flight
SECTION 17. Right to Mandatory Fare Discount. — Qualified senior citizens,

PWDs, and students are entitled to a twenty percent (20%) discount on all regular
fares,

To avail of the discount, the persons concerned are required to show competent
proof that they are senior citizens, PWDS or students. Competent proof includes
government-issued identification cards or school identification cards.


To avail of the discount, a student at the time of the purchase of the airline ticket,
must be enrolled in preschool, elementary, secondary or collegiate school or
institution, whether academic, vocational or technical, duly recognized by the
government. For the purpose of this Act, it does not include those taking up post-
graduate courses like medicine, law, and masteral and doctoral degrees as well as
short-term courses and seminars and classes like dancing, singing and driving
lessons

Qualified senior citizens, PWDs, and students are likewise exempt from the payment
of the value-added tax.

Where the air carrier offers promotional fares, the fare that is more beneficial
between the discounted fare and promotional fare shall be given to the passenger.

Where the air carrier offers promotional fares, the fare that is more beneficial
between the discounted fare and promotional fare shall be given to the passenger.

For purposes of taxation, the discounts herein imposed shall be allowed as
deduction on the gross income of the air carrier

SECTION 18. Right to Refund. — Every passenger holding a refundable airline
ticket shall have the right to the refund of fares. This includes the refund of other fees
‘such as checked baggage fees and other optional service fees such as insurance,
and seat selector, if any.

SECTION 19. Right to Cancel a Flight. — |f the passenger cancels the confirmed
flight more than twenty-four hours before the ETD, the passenger shall be
reimbursed seventy-five percent (75%) of the cost of the ticket less charges for
ancillary services, and the remaining twenty-five percent (25%) shall be retained as
the cancellation fee. There shall be full reimbursement of such charges for ancillary
services not availed of, including but not limited to, baggage fees and terminal fees.

SECTION 20. Right to Rebook a Flight. - Every passenger who has fully and
truthfully informed that the ticket purchased is rebookable shall have the right to
rebook the flight in accordance with the terms and conditions set forth in the revoking
policy

SECTION 21. Right to be Processed for Check-in. — A passenger holding a
confirmed ticket, whether under a promotional or regular scheme, with complete
documentary requirements, and who has complied with the air carrier's check-in
procedures, shall be processed accordingly at the check-in counter within the check-
in deadiine. For this purpose, the CAB shall, consistent with global aviation practice,
provide a uniform schedule of the opening pf check-in counters and check-in
deadline for both local and international flights giving the passenger enough time to
be processed for check-in.

The air carrier shall, therefore, and subject to infrastructure limitations, clearly
designate the boundaries of its assigned check-in areas or counters in a manner
convenient to the passengers


The air carrier shall ensure that all its passengers for a particular flight including
those who are in queue prior to the check-in deadline have already checked-in
before accepting passengers from previously delayed or cancelled flights, and
chance passengers, in that order, when there are still seats available.

SECTION 22. Right Board Aircraft for the Purpose of Flight. ~ Except when the
passenger is at fault, or due to legal or valid causes such as immigration issues,
safety, security, and health concerns when there is a legal or other valid cause, a
passenger who has checked-in for a particular flight has the right to board the aircraft
for the purpose of flight. A passenger shall be considered at fault if such passenger
is acting in violation of a law or the contract of air carriage affecting the safety and
security of another passenger or crew during the voyage

C. RIGHT AGAINST ANY ACT OF DISCRIMINATION AND VEXATION

SECTION 23. Right to Equal Protection. ~ Every passenger is entitled to all the
rights set forth in this Act and in all aspects of the contract of carriage regardless of
race, sex, gender, education, income, social status, language, physical
characteristics, mental characteristics, sensory impairments, age, religion, marital
status, political belief, and other circumstances. No air carrier shall deny a passenger
from enjoying the rights set forth in this Act because of criminal or summary
convictions, or a previous grievance against the air carrier.

SECTION 24. Right to Board Aircraft for the Purpose of Flight. — Air passengers
shall have the right to be respected at all times by the air carrier. Airline employees
and crews shall serve passengers with utmost courtesy and respect.

SECTION 25. Right to Baggage and Property Security. — A passenger shall have
the right to be secured of his/her baggage and property, particularly during the
process of baggage screening. Airport authorities, Civil Aeronautics Board (CAB)
and the Civil Aviation Authority of the Philippines (CAAP) shall have the
responsibility to ensure observance of this right and making passengers safe from
schemes and/or practices that violate this provision. In this regard, the airport
authorities, CAB and CAAP shall ensure the provision of sufficient security and
screening personnel, equipment and facilities, charged within their respective
appropriations and sources of funding.

D. RIGHT TO SAFETY

SECTION 26. Access to Emergency Measures, Medical Assistance, Safety
Devices and Essential Services. — A passenger has a right to have access to and
to use emergency and safety devices, medical assistance, and proper application of
first aid procedures during emergency situations or when the passenger's health
requires it. Air carriers shall train flight personnel and crews in handling and
responding to emergency situations and shall provide at least one (1) flight crew who
is certified to be trained in the application of first aid procedures. An air carrier shall


always inform its passengers of emergency measures in cases of evacuation before
the start or during the first hour of the flight

A passenger has a right to disembark from an aircraft while in the passenger's
determination, continuing the journey or being onboard the aircraft constitutes a risk
to health. The air carrier shall consult with the passenger who wishes to disembark
and determine whether it is to the best interest of the passenger to deplane. A
passenger shall have access to essential services such as adequate food and
potable water, clean and safe lavatory facilities, and cabin ventilation and
comfortable cabin temperatures.

£. RIGHT TO REDRESS AND COMPENSATION

SECTION 27. Right to Bring Action, Satisfaction or Relief of a Wrong or Injury.
— Every passenger has a right, without fear of retribution, to take action against the
carrier for any wrong or injury caused to the passenger by reason of the contract of
carriage under this Act and applicable treaties or conventions.

SECTION 28. Right to Immediate Payment of Compensation. - A passenger
shall have the right to be compensated, promptly and expeditiously, in case of flight
delay or cancellation, death or injury upon his/her person, and loss or deterioration to
one's baggage and property, as the case may be. Compensation under this Act does
not preclude passengers to seek redress in a court for damage caused by any
violation of the rights of the passenger as provided for by this Act or any other laws
or treaties concerning air transportation

An air carrier liable for any of the required compensations provided under this Act
shall make the same available to the affected passenger at the air carrier's counters
at the airport on the date when the occasion entitling the passenger to compensation
occurred, or at the main office or any branch of the air carrier at the discretion of the
passenger. The air carrier shall tender a check or cash for the amount specified, or
the document necessary to claim the compensation herein stated

If not paid within the prescribed period, the compensation granted in this chapter
shall earn an interest computed at the current legal rate until full payment reckoned
from the time of the expiration of the said period, unless the non-payment is
prevented by a legal cause.

SECTION 29. Rights of a Passenger for Delayed Flights. — Every passenger has
the right to be compensated for flights not flown within a reasonable time from ETD.
The provisions of this section shall be the minimum entitlement of a passenger in
case of delay and shall not prohibit the air carrier from granting more favorable
conditions or recourses, as it may deem appropriate.

(a) Terminal Delay
In case the flight is delayed for at least two (2) hours after the ETD, whether

or not such is attributable to the carrier or the airport operators, a passenger
shall have the right to


1) Be notified via public announcement of the reason for the delay and the
ETD as soon as this information is available;

2) Be provided a minimum level of care immediately, on the spot at
terminals/stations while waiting for the beginning or the continuation of
the delayed journey;

3) Be offered free of charge: (i) sufficient meals and refreshments in a
reasonable relation to the waiting time; (ii) free phone calls, text
messaging, fax, emails, or other means of communications; (iii) free
internet access; and (iv) first aid, if necessary. In applying this section,
the operating air carrier shall pay particular attention to the needs of
persons with reduced mobility and any person accompanying them, as
well as to the needs of unaccompanied children; and

4) Declare that he/she is cancelling his/her reservation and ask for refund
or rebooking in accordance with Sections 18 and 20 hereof; or ask for
endorsement to another carrier

In case the flight is delayed for at least three (3) hours after the ETD for
causes attributable to the carrier, the flight shall be deemed cancelled
and the affected passenger shalll be entitled to the remedies provided
under Section 29 (a).

(b) Tarmac Delay

Every passenger shall likewise have the right to adequate food
and beverage in cases of tarmac delay of at least two (2) hours after
the ETD, reckoned from the closing of the aircraft doors or when the
aircraft is still at the gate with the doors still open but passengers are
not allowed to deplane. In case the delay exceeds three (3) hours, the
passenger may request disembarkation

If the said delay is due to the air carrier's negligence, it shall be
liable to pay damages amounting to ten thousand pesos (PhP
10,000.00) or the actual damages suffered, whichever is higher.

In the case of a multi-sectoral journey where the air carrier is at
fault, in addition to the rights and entitlements stated under this section.
a passenger shall be entitled to an additional compensation at a rate
which is equivalent to at least the value of the sector cancelled by
reason of the delay; Provided, That in case of connecting flights with
another, the passenger has allotted sufficient connecting time of at
least three (3) hours for international flights and two (2) hours for
domestic flights; Provided, further, That the passenger shall not be
entitled to the compensation of the value of the sector deemed
cancelled, if the passenger is endorsed to another carrier and the
passenger is able to complete his/her journey


SECTION 30. Rights of a Passenger for Cancelled Flights or Flights Deemed
Cancelled. — A passenger has a right to compensation in cases of flight cancellation
‘subject to the following rules:

a) If a flight is cancelled due to a cause attributable to the air carrier, a
passenger shall have the right to:

1) Be notified beforehand or as soon as possible of the situation
via public announcement, written/published notice and flight
status update service either through text or electronic mail,

Be provided a minimum level of care immediately, on the spot at

terminals/stations;

3) Be offered free of charge
i. Sufficient meals and refreshments in a reasonable

relation to the waiting time;

ii Hotel accommodation near the airport in cases where a
stay of one or more night becomes necessary, or where a
stay additional to that intended by the passenger
becomes necessary; and

iii, Transportation service between the airport and place of
accommodation. In addition, passengers shall be offered
free phone calls, text messaging, fax, emails, or other
means of communications, free internet access, and first
aid, if necessary. In applying this provision, the air carrier
shall pay particular attention to the needs of persons with
reduced mobility and any person accompanying them, as
well as to the needs of unaccompanied children

4) Subject to the provisions of Sections 10 and 19 hereof, be
reimbursed within five (5) days, either by cash, by electronic
bank transfer, bank orders or bank checks or with the signed
agreement of the passenger, in travel vouchers and/or other part
or parts of the journey not made and for the part or parts already
made if the flight is no longer serving any purpose in relation to
the passenger's original travel plan, together with, when
relevant, a return flight to the first point of departure, at the
earliest opportunity. If payment is made through credit card, the
reimbursement should be credited back to the payor's credit
card account within seven (7) days without additional cost to the
passenger.

5) Be endorsed to another air carrier without paying any fare
difference, at the option of the passenger, and provided that
‘space and other circumstances permit such accommodation; or

6) Rebook the ticket without any additional charge.

2)

a) In the case of multi-sector journey, in addition to the
rights and entitlements stated under this section, a
passenger shall be entitled to an additional compensation
at a rate which is equivalent to at least the value of the
sector cancelled by reason of the cancellation


b) In case the carrier cancels the flight because of force
majeure, safety, and/o: security reasons as certified by
the CAAP, a passenger shalll have the right to:

1) Rebook the trip to another trip in the future, subject
to the payment of the fare difference, if any;

2) Reimbursement of the value of the fare;

3) Endorsement to another airline, at the option of the
passenger

This provision shall be the minimum entitlement of
a passenger in case of cancellation and shall not
prohibit the air carrier from granting more favorable
conditions or recourses as it may deem
appropriate.

SECTION 31. Rights of Passengers Denied Boarding. ~ A passenger who has
checked-in for a particular flight cannot be denied from boarding the aircraft except
for legal or other valid cause such as immigration issues, safety, security, and health
concerns.

In a case where a passenger is denied boarding because the number of volunteers
not due to overbooking, government requisition of space, downgrading of an aircraft
or legal orders, the flight in respect to the affected passenger shall be deemed
cancelled and the compensation shall be governed by the following rules

a) If the denial of boarding the aircraft is by reason of overbooking, aircraft
downgrading, the passenger concerned shall be compensated in accordance
with the provisions of Section 29(a) hereof

If the denial of boarding the aircraft is for some legal or justifiable reason
relating to the security or safety of the passengers of applicable regulations as
sanctioned by the CAAP or legal order of other authorities, the passenger
concerned shall be entitled to refund, rebooking or endorsement to another
carrier subject to payment of fare difference or any administrative charges
when applicable;

If the denial of boarding the aircraft is due to government requisition of space,
the affected passenger shall be compensated and shall be entitled to the
remedies in the preceding paragraph with the cost chargeable against the air
carrier subject to reimbursement by the requesting agency if allowed; and

In the case where a passenger is denied boarding for acting in violation of law
or the contract of carriage affecting the safety and security of another
passenger or crew during this voyage. such passenger shall not be entitled to
any relief provided under this Act.

b}

°)

d)

Provided, That no passenger shall be denied boarding for two (2) consecutive
times on the same day, except when public safety, order, health or moral
requires; Provided, further, That PWDs, persons with special needs, senior
citizens, pregnant women and unaccompanied children shall be given
preference against denied boarding


SECTION 32. Filling-up of Empty Seats. — Vacant seats due to cancellations by
the passenger and no shows shall be offered by the air carrier, first to the
passengers of delayed or cancelled flights of the same air carrier or of another
carrier, through endorsement between the two (2) air carriers. If there are still empty
seats remaining, it shall then be offered to the chance passengers

SECTION 33. Loss, Damage and Delay of Baggage. — Every passenger has a
right to compensation for any loss, damage, or delay of baggage attributable to the
fault of the air carrier. Compensation for loss of baggage shall be in the following
amounts:

For international flights, twenty dollars (USD 20.00) per kilo for checked-in
baggage and four hundred dollars (USD 400.00) for hand-carried baggage

For domestic flights, the equivalent amount in pesos shall apply

A passenger's baggage is presumed lost if within a period of seven (7) days
counted from the time the passenger or consignee should have received the
same, the baggage is not delivered to the said passenger or consignee

Once the baggage is declared to be permanently lost in case of domestic
flights, the provisions set in the contract of carriage shall apply in the valuation
of lost belongings. In case of international flights, the limits set by the Warsaw
Convention or the Montreal Convention, whichever is applicable, shall apply

In case a checked-in baggage has been off-loaded for operational, safety, or
security reasons, the air carrier shall inform the passenger at the soonest
practicable time and in such manner that the passenger shall readily know of
the offloading that his/her baggage has been off-loaded and the reason
thereof. If the passenger's baggage has been off-loaded, the air carrier shall
make the appropriate report and give the passenger a copy thereof, even if it
announced that the baggage shall be on the next flight

The air carrier shall carry the off-loaded baggage in the next flight with
available space, deliver the same to the passenger either personally or at
his/her residence and tender an amount of one thousand pesos (PhP
4,000.00) for every two (2) days of late delivery, as compensation for the
inconvenience. The passenger shall also have the right to the refund of the
checked baggage fees if the baggage was not delivered to the passenger
within twenty-four (24) hours from the flight

Air carriers are liable for provable consequential damages up to the amount of
their liability limit in connection with the loss and delay in the delivery of
baggage, in accordance with the limits set by the Warsaw Convention or the
Montreal Convention, whichever is applicable

Damaged baggage shall be compensated at one hundred pesos (PhP
100.00) per kilogram if it is in a domestic flight unless the passenger has
declared a higher valuation of the baggage at check-in time. For international
flights, item (i) under this paragraph shall apply.


SECTION 34. Compensation for Death and Bodily Injuries. —

a) In case of international flights, the rules of the relevant convention shall apply
as compensation for death or bodily injuries sustained by a passenger in the
contract of carriage

b) For domestic flights, the passenger shall be entitled to compensation subject
to the provisions of the contract of carriage or the compensation as provided
in the provisions of the relevant convention, in its Philippine currency
equivalent, whichever is higher

SECTION 35. Compensation for Violation of Airline Passenger Rights. — In case
the air carrier violates the rights of air passengers, the former shall pay the latter
damages amounting to at least fifty thousand pesos (PhP 50,000.00) exclusive of
other damages or injury the air passenger has suffered

CHAPTER V
RIGHTS, DUTIES AND OBLIGATIONS OF AIR CARRIERS

SECTION 36. Prevention of Harm to Passengers and Maintenance of Aircrafts
— An air carrier shall prevent harm and hazard to passengers by ensuring that it
follows all regulations on the airworthiness of the aircraft, complies with rules on
hazardous materials, protects the passengers from unreasonable harm, and actively
responds to harm caused by the aircraft structure, materials and chemicals

SECTION 37. Designation of an “Al-Flight” or “Per Route” Counters. — Air
carriers may operate all-flight counters which shall serve passengers without regard
to destination. As far as practicable, the air carrier shall, in addition to all-flight
counters, open a separate counter dedicated for a flight nearing check-in deadline to
facilitate the checking-in of passengers at least an hour before the published ETD

SECTION 38. Special Accommodation of PWDs, Persons with Special Needs,
Senior Citizens, Pregnant Women and Unaccompanied Children. — To ensure
the full enjoyment of the rights enumerated under this Act, the provisions of the
following laws and their implementing rules and regulations, whenever applicable,
shall form part of this Act as far as the passengers of this section are concerned:

a) Republic Act No. 7277 or the Magna Carta for Disabled Persons as amended
by Republic Act No. 9442 and its implementing rules and regulations:

b) Batas Pambansa Bilang 344 or the Accessibility Law:

c) Republic Act No. 7432 as amended by Republic Act 0. 9257 and Republic Act
No. 9994 or the Expanded Senior Citizens Act of 2010 and its implementing
rules and regulations.


The contract of air carriage shall clearly enumerate the necessary terms and
conditions affecting the rights of the PWDs, senior citizens, persons with
special needs, pregnant women and unaccompanied children

Air carriers and its agents, in coordination with the agencies charged with
protecting the rights and welfare of the abovementioned passengers, shall
implement a system allowing this group of persons enough and convenient
opportunity to comply with aviation requirements and their special needs,
facilities and assistance by reason of their individual circumstances
throughout the flight

For this purpose, air carriers shall designate at least one (1) check-in counter
dedicated for persons with disabilities (PWDs), senior citizens, persons with
special needs, pregnant women, and unaccompanied children between seven
(7) and twelve (12) years old.

SECTION 39. Responsibility of the Air Carrier When the Number of Passengers
is Beyond the Capacity of the Aircraft — If a certain flight has more ticketed
passengers than the allowed capacity of the aircraft by reason of overbooking,
government requisition of space, as well as the downgrading of the aircraft for safety
or unforeseen operational reasons as certified by the CAAP, the air carrier shall
perform the following:

a) Determine the number of passengers in excess of the actual seat capacity of
the aircraft;

b) Announce that the flight is overbooked, and that it is looking for volunteers

willing to give up their seats in exchange for air carrier compensation;

Provide the interested passengers or volunteers a list of amenities and offers

from which they can choose, which shall always include priority booking in the

next available flight and/or cash incentive; and

In cases the number of volunteers is not enough, the air carrier shall increase

the compensation package by a certain degree by adding more

amenities/services until the required number of volunteers is met

°)

d)

No flight shall be delayed pursuant to the settlement of the air carrier's
obligation under this section

SECTION 40. Duty of the Carrier in the Event of Flight Deviation. — Flight
deviation happens when there is a change in the airport of origin or destination. If
such is the case, an air carrier shall provide the necessary transportation to ferry a
passenger from the originally-designated airport of departure to the actual airport of
departure or from the airport of actual destination to the airport of the originally-
designated destination, as the case may be

If, by reason of the deviation, a certain right of a passenger has been violated, the
applicable provisions of this Act shall govern the availment and grant of remedies
and compensation.


SECTION 41. Provision of Assistance Desk. — Air carriers shall provide Customer
Service Representatives (CSR) who can address common problems on the spot,
which include arranging for meals, hotel rooms and accommodation for stranded
passengers, write checks for denied boarding compensation, arrange luggage
resolutions, and settle other routine claims or complaints. In addition, the CAL shall
provide Complaints and Assistance Desks manned by CAP or CAB-deputized
personnel in all airports who shall assist passengers, whose rights have been
violated, including the filing of the complaint.

SECTION 42. Remedies of the Passengers. — Every passenger whose right
provided in this Act is violated shall have the following remedies:

Go to the CSR of the air carrier at their designated counter. Ask for two (2)

copies of the report form and write the nature of the complaint.

Submit the forms to the CSR and get acknowledgement receipt. Give one (1)

copy to the CSR for processing

c) Give the other copy at the Complaints and Assistance Desk (CAD) of CAB or
CAB-deputized personnel at the airport and attach the report form from the
CAB.

d) Get acknowledgement receipt of the complaint from the CAB

e) Get resolution slip from the air carrier's CSR and attach it on the CAB report
form and submit it to the CAB-CAD.

f)_ If case if not resolved, go to the CAB-CAD and report such incident together

with documents, and other evidence, to support the claim.

b)

SECTION 43. Operational Spare. — An air carrier shall, in adopting its flight
schedules, exert all efforts to manage the disposition of its aircraft in such a way as
to be able to reallocate aircraft to take the place of another aircraft in case the latter
cannot carry the passengers due to operational requirement, aircraft maintenance,
and other similar situations.

SECTION 44. Immediate Reporting of Off-loaded Checked Baggage. — In case a
checked baggage has been off-loaded for operational, safety or security reasons, the
air carrier shall inform the concerned passenger, at the soonest practicable time and
in such manner that the passenger shall readily know of such off-loading and the
reason thereof. If the passenger's baggage has been off-loaded, the air carrier shall
make the appropriate report and give the passenger a copy thereof, even if it
announced that the baggage shall be on the next flight

CHAPTER V
OBLIGATION OF THE CAAP, CAB AND AIRPORT OPERATORS

SECTION 45. Availability of Check-in Counters. — The CAAP, airport authorities
or airport operators, as the case may be, shall provide adequate number of check-in
counters for every air carrier operating in a particular airport

They shall ensure that the number of check-in counters of an air carrier in a
particular airport shall be proportionate to the volume of passengers who are


checking-in for a particular flight. In no case shall the queue exceed twenty (20)
persons per check-in counter.

SECTION 46. Assignment of Technical Personnel in Airports. - The CAAP shall
ensure that every commercial airport is manned by technical personnel capable of
verifying and certifying reports of technical or infrastructure problems or other
reasons leading to delays and cancellations. The technical personnel concerned
shall submit a periodic report of all delays and cancellations and the corresponding
reasons thereof to the CAAP Central Office.

SECTION 47. Liability of Airport Operators/Authorities. — In cases of flight
cancellation, delay, death or injury of a passenger, loss or deterioration to one’s
baggage and property, and such other violation of a passenger's security, as the
case may be, that are attributable to the airport authority/operator, a passenger has
a right to be compensated and be granted of remedies and relief in accordance with
the applicable provisions of this Act.

SECTION 48. Complaints Desk. — The CAB shall provide the necessary personnel
to cater the unresolved complaints of passenger in every commercial airport. It shall
be the duty of the assigned personnel to report all complaints to the CAB at the
earliest time possible, taking into account the nature of the relief sought by the
passenger.

CHAPTER VI
REMEDIES AND GRIEVANCE PROCEDURES

SECTION 49. Amicable Settlement. — A passenger air carrier shall exhaust all
efforts toward settling dispute amicably in accordance with the provisions set forth in
this Act. If no amicable settlement is reached, the government. through CAB, may
take cognizance of the case.

CHAPTER Vil
PENAL PROVISIONS

SECTION 50. Penalties. — Any violation of this Act shall be penalized in accordance
with the pertinent provisions of Republic Act No. 776 or the Civil Aeronautics Act of
the Philippines, Republic Act No. 7394 or the Consumer Act of the Philippines,
Republic Act No. 9442, Batas Pambansa Bilang 344 and Republic Act No. 9994, as
the case may be.

Failure on the part of the air carrier to comply with any of the obligations stated in
this Act, upon the order of the CAB shall, after due hearing, be a ground for
‘suspension of its franchise or license to operate.

Grave and repetitive violations after the lifting of the suspension of its franchise or
license to operate shall be a ground for revocation of such franchise or license to
operate.


SECTION 51. Review of Penalties. — The CAB. in coordination and consultation
with the DOTC, Department of Trade and Industry (DTI) and CAAP shall, after three
(3) years from the effectivity of this Act and every three (3) years thereafter, review
the applicability and enforcement of all foregoing pecuniary penalties and initiate
actions for amending or upgrading the same as may be necessary in accordance
with law.

CHAPTER Vill
FINAL PROVISIONS

SECTION 52. Implementing Rules and Regulations (IRR). — Within sixty (60) days
from the effectivity of this Act, the CAB shall, in coordination with the DOTC, DTI and
CAAP after consultation with accredited passenger organizations, air carriers and
other directly affected stakeholders, promulgate the necessary organizations, air
carriers and other directly affected stakeholders, promulgate the necessary rules and
regulations to effectively implement the provisions of this Act

SECTION 53. Congressional Oversight Committee. — A Congressional Oversight
Committee for Air Passenger Rights is hereby constituted in accordance with the
provisions of this Act. The Committee shall be composed of the Chairman of the
‘Senate Committee on Public Services and the Chairman of the House Committee on
Transportation and four (4) additional members from each House to be designated
by the Senate President and the Speaker of the House of Representatives,
respectively. The Committee shall, in aid of legislation:

a) Monitor and ensure the proper implementation of this Act

b) Review the collection performance of the Authority; and

c) Review the proper implementation of the programs of the Authority and the
use of the collected fund

In furtherance of these objectives, the Committee is empowered to require the
DOTC, DTI, CAAP, and CAB, to submit all pertinent information, including
complaints filed by the passengers and the complaints resolved by the air carriers
and the CAB.

The Committee shall be in existence for a period of five (5) years, and thereafter, its
oversight functions shall be exercised by the Senate Committee on Public Services
and the House Committee on Transportation acting separately

SECTION 54. Appropriations. — The Secretary of Transportation and
Communications shall immediately include in the Department's program the needed
operational requirement in upholding the enumerated rights in this Act, the initial
funding of which shall be charged against the current appropriations for the CAB
Thereafter, such sums as may be necessary for the continued implementation of this
Act shall be included in the annual General Appropriations Act


SECTION 55. Separability Clause. — |f, for any reason, any provision of this Act is
declared unconstitutional or invalid, such parts or portions not affected thereby shall
remain in full force and effect.

SECTION 56. Repealing Clause. — All laws, executive orders, presidential decrees,
issuances, rules and regulations or parts thereof inconsistent with the provisions of
this Act are hereby repealed or modified accordingly

SECTION 57. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,