Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon Ci

SEVENTEENTH CONGRI

First Regular Session

noe
HOUSE BILL NO, 2782

Introduced by
BAYAN MUNA Party-list Rep. CARLOS ISAGANL T, ZARATE

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

EXPLANATORY NOTE

This Bill seeks to re-file House Bill 5361 entitled “An Act Providing For The “Magna
Carta Of Airline Passengers Rights", Imposing Obligations On Airline Companies,
Providing For Penal Sanctions, And For Other Purposes”, originally filed by Bayan Muna
Party-list Representatives Neri Colmenares and Carlos Zarate during the 16" Congress. The
same House Bill 5361 was one of the mother bills made as main reference of Consolidated
House Bill 6191, entitled “An Act Providing For The Protection Of The Rights Of Airline
Passengers And Penalizing Acts In Violation Thereof” which was approved on Thitd
Reading, likewise during the 16" Congress,

Air travel has become an indispensable mode of conveying passengers and goods in
the Philippines. As a common carrier, an airline company assumes the express obligation to
transport passengers to their destination safely and observe extraordinary diligence in the
conduct of their business, Providing safe, efficient and convenient service to its customers is
therefore a strictly construed obligation of an airline company

Despite increasing profits from a growing air industry business, however, airline
companies have wantonly disregarded passengers’ rights confident that Filipino airline
passengers do not generally demand for remedies against abuse due to the expensive and

tedious legal processes that normally favor the rich and the powerful and not the vietims. [tis
a widely known fact that, among other problems, long queues in check-in counters, delayed
flights, or even sudden cancellations of flights, to name a few, continue to be prevalent in all
airports in the country, ‘This problem has been plaguing airline passengers for years.

In 2012, the government issued DOTC-DTI Joint Administrative Order 01-2012,
providing for the “Bill of Rights of Air Passengers and Airline Obligations” supposedly to
address these problems. However, airline passengers continue to experience the same long

1


queues, delays, overbooking, cancellation, diversion of flights and other unnecessary
inconvenience. The problems again came to the fore in the last quarter of 2014 and
culminated during the 2014 holiday season despite the JAO 01-2012 which means that the
said Order has failed to protect the rights of airline passengers and is bereft of insufficient
penalties to sanction airline companies

Worse, legal recourse for passengers against airline companies have proved difficult
and costly, practically rendering ineffective their rights under the Warsaw Convention, the
Montreal Convention and other international Jaw norms that provide remedies for violation of
air passengers rights, This only emboldened airline companies in disregarding passengers
rights in their drive for mega profits, The government and its regulatory bodies have
remained helpless and ineffective in providing relief for victims of airline abuse.

amendatory laws, PD 1462, Civil Aeronauti

Republic Act 776 and it s Board (CAB)

regulations and other laws no longer suffice to protect air passengers’ rights. Any legislation
providing for piecemeal response will not provide lasting solutions. A more comprehensive
legislation on passengers’ rights to ensure protection of passengers rights has become an

imperative,

There is a need for a law that will provide for the rights of airline passengers and
impose obligations on airline companies to ensure safe, convenient and affordable travel for
the people. Said law should penalize airline companies for violation of air passengers’ rights
in order to put a stop to this persistent and recurring problem. There is a need for a law that
will provide victims speedy legal remedy and discourage airline companies from disregarding
their passengers* rights

Airline passengers who receive compensation and benefits under this proposed law
may, at their option, avail of additional compensation or benefits under international law
through the regular courts, The purpose of this special law is provide a less expensive and
faster remedy to victims and at the same time serve as a warning to airline companies to
respect the rights of their passengers,

This Bill asks Congress to enact a law that will provide for the Magna Carta of Air
Passengers rights and for stiffer penal sanctions against airline companies with the aim of
helping provide for a long terms solution to the problems plaguing airline passengers for a
Jong time. Thus, the approval of this proposed legislation is earnestly sought.

Approved,

Rep. dmeeaxnd N} wo

Bayan Muna Péty-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon C

SEVENTEENTH CONGR!
First Regular Session

wine
HOUSE BILL No, 27 £2

Introduced by BAYAN Muna Rep. CARLOS ISAGANI T. ZARA’

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 House of Representatives of the Philippines in Congress
assembled:

CHAPTER I
GENERAL PROVISIONS.

SECTION 1. Short Title. ~ This Act shall be known and cited as the “Magna Carta for Air
Passengers Act”,

SEC. 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.

rhe

SEC. 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 I
either not been put in or been subsequently removed from the cargo hold of the

as

cartier;
(©) 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;

(2) Cancellation by the air carrier after an unduly long delay; and

(3) Cancellation by the passenger or a situation deemed cancelled as provided under
this Act.

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

counter;

(c) Cheek-in Period refers to the time when the ai check-in counters are
open for accepting and processing passengers checking in for their flights which
starts at least 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:

(0) 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 pas:
and which the carrier or its agent has verified, by appropriate notation on the
ticket, as being reserved for the accommodation of the passenger;

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

(h) Delay refers to the deferment of a flight to a later time, Terminal delay refers to a
delay that occurs while 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;

(i) 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;

(j) Denied Check-in refers to a situation where a passenger, who has physically
presented travel documents to an air catrier’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;

(k) 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 nondiscounted, 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 nonessential 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:

ier

nger,



(1) 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 bonafide employee of an air
cartier, and who as 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 of 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 the 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 tim

(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 named in
the flight ticket shall be considered a passenger for the purpose of this Act;

(s) Person with Disability or PWD refers to those who have long-term physical,
mental, 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;

(t) 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 servic:

(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 and which does not have flexibility in



terms of time, schedules, routes, and choices of airports and similar operat
characteristics.

SEC, 4, Scope of Application. — This Act shall apply to all aspects of contract of air carriage
for flights or 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 not apply to air carriers flying into the territory of the Philippines if the laws of the
country of origin provide similar or higher compensation.

SEC. 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 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 suppletory
effect in the implementation of this Act insofar as the same are not contrary to the provisions
herein contained

CHAPTER IL
CONTRACT OF CARRIAGE BY AIR

SEC. 6, Contract of Air Carriage. — By the contract of air carriage, an air cartier 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 oneself to
pay a just and reasonable air fare.

SEC. 7. Perfection of the Contract of Carriage. — The contract of air carriage is perfected
from the moment the air carrier 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 correspondin

full payment of the fare by said passenger.
SEC, 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 ordinary diligence while the contract of a
carriage is effective.

SEC. 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

6


presumption of negligence shall not apply if the loss, damage, or unreasonable deterioration
is caused or occasioned by any of the following:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;
(2) Act of the public enemy in war, whether intemational or civil;
(3) Act or omission of the shipper or owner of the baggage/200:
(4) The character of the goods or defects in the pac!
(5) Order or act of competent public authority.

ng or in the containers; and

SEC, 10, Cancellation. ~ An air carrier may cancel a flight for any of the following:

(1) Infrastructure limitation as certified by the CAP;

(2) Safety reasons due to a technical problem:

(3) Security reasons; or

(4) During the occurrence of a fortuitous event. The passengers affected may avail
such applicable remedies provided under this Act.

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

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

CHAPTER III
RIGHTS AND OBLIGATIONS OF THE PASSENGERS

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

SEC. 13. Clear, Truthful, and Understandable Information. ~ In 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 carrier or general sales agent
on the following terms and conditions of the contract of carriage:

(a) Fate and other fees and ancillary charges (taxes, insurance, fuel surcharge, seat
res

(b) Travel restrictions;

(c) Baggage allowance and limitatio

(a) Check-in and boarding requirements and deadlines;

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

(8) Air cartier’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,

SEC. 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, of incorporate such terms and conditions of carriage by reference.

Incorporation by reference means that the ticket or boarding pass shall clearly state
complete terms and conditions of carriage are available for perusal or review in the
t's website, or in some other document that may be sent to or delivered by post or
electronic mail to a passenger upon request.

that the

air carri

The ai

jets are required under this Act to post in their website, or other online
niger has a right of full access and disclosure.

accounts, the information which the px

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 pagpili ng tiket 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) Panuntunan sa hindi pagdating sa tamang oras; at

(d) Iba pang importanteng impormasyon ukol sa ticket

SEC. 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 typ
(b) Refund and rebooking policies; Government tax:
(©) Other fees and charges;

(@) Contact details of the carrier which include phone numbers, websites, emails, and
online accounts;

(e) Other information that is necessary to apprise the passenger of the conditions and
full price of the ticket which may include incorporation by reference of websites
and other available information portal or office where the passenger can read ot
ask the full terms and conditions of the fare and the air passenger bill of rights;
and

(0 In case of promotional fares, the number of seats offered on a per sector ba
CAB permit or approval number and the duration of the promo.

and fuel surcharges;

is, the

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

SEC. 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.

SEC. 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 pe med 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.

jons con

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 the 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.

SEC. 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 fee, if any.

SEC. 19. Right to Cancel a Flight, ~ If the passenger cancels the confirmed flight more than
twenty-four (24) 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.

If the passenger cancels the confirmed flight twenty-four (24) hours or less before the
ETD, or does not show up altogether, the ticket shall be considered flown; there shall be full
reimbursement of the charges for ancillary services not availed of including, but not limited
to, baggage fees and terminal fees.

SEC. 20. Right to Rebook a Flight. — Every passenger who was 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 rebooking policy.

SEC. 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 deadline. For this purpose, the CAB
shall, consistent with global aviation practice, provide a uniform schedule of the opening of
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

10


ssengers, in

accepting passengers from previously delayed or cancelled flights, and chance p:
that order, when there are still seats available.

SEC, 22. Right to Board Aircraft for the Purpose of Flij Except when the passenger
is at fault, or due to legal or valid causes such as immigration i: afety, 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

SEC. 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 characteristi
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 cartier

SEC. 24. Right to be Respected. — Air passengers shall have the right to be respected at all
limes by the air cartier. Airline employees and crews shall serve passengers with utmost
courtesy and respect.

SEC. 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
sereening, Airport authorities, the 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

SEC. 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, me stance, 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.

I ass

W


A passenger has a right to disembark from an aircraft when in the passenger’
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 itis 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.

E. RIGHT TO REDRESS AND COMPENSA’

SEC. 27, Right to Bring Action, Satisfaction or Relief of a Wrong or Injury. — E)
passenger has a right, without fear of retribution, to take action against the air 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.

>, 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 the 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 cartier 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 for
claiming the compensation herein stated,

If not paid within the preseribed 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.

SEC. 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:

12


(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: (j) sufficient meals and refreshments in a reasonable
relation to the waiting time; (ji) free phone calls, text messaging, fax, emails, or other
means of communications; (iii) free intemet 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 ETD for causes
attributable to the carrier, the flight shall be deemed cancelled and the affected
passenger shall 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 ETD, reckoned from the closing of the
aireraft 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

(©) Arrival Delay

In case there is a delay in the aircraft’s arrival at the airport of destination for at least
one (1) hour, the air carrier shall give the affected passengers free food and beverages.

Ifthe said delay is due to the air carrier’s negligence, it shall be liable to pay damages
to the air passenger amounting to ten thousand pesos (P10,000.00) or the actual damages
suffered, whichever is higher.

In the case of a multi-sector 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 other
carrier, 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.



SEC. 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 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 noti
through text or electronic mail;

(2) Be provided a minimum level of care immediately, on the spot at
terminals/stations;

(3) Be offered free of charge:

and flight status update service either

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 nights 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 cheques
or with the signed agreement of the passenger, in travel vouchers and/or other
services of the full cost of the ticket at the price at which it was bought, for the
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 re-
accommodation; or

(6) Rebook the ticket without any additional charge.

“4


(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/or
security reasons as certified by the CAAP, a passenger shall have the right to:
(1) Rebook the trip to another trip in the future, subject to the payment of the fare
difference, if an}
(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.

SEC. 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
causes such as immigration issues, safety, security, and health concerns.

In a case where a passenger is denied boarding because the number of volunteers is
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

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

(c) 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

(d) In the case where a passenger is denied boarding for 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, such passenger shall not be entitled to any relief provided under this Act.

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,

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 cartier, through endorsement between the two (2)
air carriers. If there are still empty seats remaining, it shall then be offered to the chance
passengers.

. 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
cartier. Compensation for loss of baggage shall be in the following amounts:
i, For international flights, twenty dollars (USD20) per kilo for checked-in
baggage and four hundred dollars (USD400) for hand-carried baggage.
ii, 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 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 off-loading 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 (P1,000.00)
for every two (2) days of late delivery, as compensation for the
inconvenience. The passenger shall also have a 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 arrival of 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.

16


Damaged baggage shall be compensated at one hundred pesos
(P100.00) per kilogram if itis 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.

SEC. 34, Compensation for Death and Bodily Injuries. —

(a) In the case of international flights, the rules of the relevant convention shall apply as
to 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 the 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

SEC. 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 (P50,000.00), exclusive of other damages or injury the air
passenger has suffered.

CHAPTER IV
RIGHTS, DUTIES AND OBLIGATIONS OF THE AIR CARRIERS

SEC. 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.

SEC. 37. Designation of an “All-Flight” or “Per Route” Counters. — Air carriers may
operate all-flight counters which will 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.

SEC. 38, Special Accommodation of PWDs, Persons with Special Needs, Senior Citizens,
Pregnant Women and Unaccompanied Children, ~ To ensure the full enjoyment of the
0

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 passeng
in this

ction 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 No. 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 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
uumstances throughout the flight

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

SEC. 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 willis
give up their seats in exchange for air carrier compensation;

(c) 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

(d) 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.

1 t0

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

SEC, 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 CAB shall provide Complaints and Assistance Desks
manned by CAB or CAB-deputized personnel in all airports who shall assist passengers,
whose rights have been violated, including the filing of the complaint.

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

(a) Go to the CSR of the air cartier at their designated counter. Ask for two (2) copies of
the report form and write the nature of the complaint.

(b) Submit the forms to the CSR and get acknowledgment 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 air carrier on the
report form from the CAB.

(4) Get acknowledgment receipt of 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.

(B If case is not resolved, go to the CAB-CAD and report such incident together with
documents, and other evidence, to support the claim.

SEC. 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
aireraft 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.

SEC, 44, Immediate Reporting of Offloaded 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

9


SEC. 45. Availability of Chi
operators, as the case may be,
air carrier operating in a particular airport.

in Counters, — The CAAP, airport authorities or airport
shall provide adequate number of check-in counters for every

‘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.

SEC. 46, Assignment of Technical Personnel in Airports. ~The CAAP shall ensure that
every commercial airport is manned by technical personnel capable of verifying and
ing reports of technical or infrastructure problems or other reasons leading to delays
personnel concerned shall submit a periodic report of all

certi

and cancellation:
delays and cancellations and the corresponding reasons thereof to the CAAP Central Office.

The techni

SEC. 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.

SEC. 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

SEC. 49. Amicable Settlement. — A passenger and 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 the CAB, may take cognizance of
the

CHAPTER VII
PENAL PROVISIONS

SEC. 50, Penalties. ~ Any violation of this Act shall be penalized in accordance with the
pertinent provisions of Republic Act No. 776 or the Civil Aeronauties 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.

20


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.

SEC. 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
me as may be necessary in accordance with law

upgrading the

CHAPTER VIII
FINAL PROVISIONS

SEC. 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, and
afler consultation with accredited passenger organizations, air carriers and other directly
affected stakeholders, promulgate the necessary rules and regulations to effectively
implement the provisions of this Act.

SEC. 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

(©) Review the proper implementation of the programs of the Authority and the use of its

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.

SEC. 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

at


SEC. 55, Separability Clause. — If, 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.

8, issuance

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

SEC. 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,