SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES ¥
First Regular Session )

HOUSE OF REPRESENTATIVES
\TION UNIT
H. No. 261i BILLS AND NOE X SERVICE

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
PROVIDING FOR A BILL OF RIGHTS FOR AIR PASSENGERS, PENALIZING
VIOLATIONS THEREOF, AND FOR OTHER PURPOSES

Explanatory Note

Investments, trade, labor and tourism benefit fromand rely on a convenient, affordable and
efficient air transport system. Air transport and storage sector accounts for 65.6 billion pesos or
0.5% of the total Gross Domestic Product (GDP) of the Philippines for 2014. The industry
provides employment for about 123,000 individuals through direct, indirect and induced
employment while it supports another 4.3 million jobs and livelihood through catalytic activities
like tourism and household consumption’, It also contributes an estimated P26 billion in taxes on
corporate and individual income, travel, supply chain consumption and others®. The vital role of
the air transport industry in promoting inclusive economic growth provides the imperative to
ensure that it functions effectively and efficiently for service providers and consumers alike.

The liberalization of the air transport industry through the adoption of Executive Order No.
219 on January 1995was a government response to problems brought about by the restricted air
transport industry in the Philippines. It provided the mandate needed to liberalize the aviation
industry, introduce more business players, open more routes, increase flight frequency and
capacity, and provide more competitive fares. Through these provisions, the government aimed
to expand investment and trade, to improveaccess for air passengers, and to address the
inaccessibility and inadequacy of the air transport service.

Today, the air transport industry enjoys remarkable growth as evidenced by the upsurge in
the clientele it serves. Records from the Civil Aeronautics Board (CAB) show that domestic
scheduled passenger traffic increased by more than thirty-three percent (33%) from 16,568,308
in 2010 to 22,082,045 in 2015°,The number of international scheduled passengers, meanwhile,
grew by more than thirty-nine percent (39%) to 19,864.97 in 2015 from 14,283,105 in 20108.
On the average, some 115,000 people flew daily to various domestic and international
destinations in 2015 compared to an average of 84,500 people in 2010. The increased utilization
of air transport was credited to the introduction of greater competitionin the major routes, lower
airfares and more availableflights*.

' Oxford Economics. (2011) The Philippines Country Report: Economic Benefits from Air Transport in the
Philippines. International Air Transport Association,

? Rimando, L.. (2012, February 29). IATA: Philippine aviation contributes 2.4% to GDP, employs 4.4-M. Rappler
Philippines.

> Civil Aviation Board. (2015). Scheduled Domestic Passenger Traffic 2006-2015. Pasay City: Civil Aeronautics
Board,

* Civil Aviation Board. (2015). Scheduled International Passenger Traffic 2006-2015. Pasay City: Civil Aeronautics
Board.

5 Austria, Myrna S. (2001, August). Competition in the Domestic Air Transport Industry: Can it be sustained
without competition policy? Policy Notes(6). 1-8.



| =

The marked improvement in terms of passenger growth and airport activity, however,
comes not without cost; it brought with it the reemergence of the problems supposedly addressed
by the liberalization of the air transport industry. Every day, cases of arbitrary passenger off-
loading, mishandling of baggage, unannounced flight delays and cancellations, and even
needless bodily harm fill the accounts of local and foreign travellers that use Philippine airport
facilities. With the sheer volume of passengers affected, interventions should be instituted to
ensure that the rights of passengers are upheld and violations of those rights are penalized.

This bill seeks to accomplish severalundertakings. It seeks to affirm the right of
passengers to receive the full value of the service they have purchased and the conveniences it
offers. It protects the rights of passengers especially during inopportune events w’
ate deprived of check-in or boarding, their flights are cancelled or delayed, their b
or destroyed, or when bodily harm are inflicted upon them. It establishes meas
grievances of affected air passengers and sets the level of compensation for viol:
passenger’s rights. Most importantly, it maintains the right of every air passenget
truthful information with regard to the contract of carriage they have entered into. ©...
this bill aims to protect the rights and welfare of air passengers, curb unjustand dishonestbusiness
practices, and promote efficiency in air transport service.

With these intentions in mind, the swift passage of this sper ‘

VILMA SANTOS-RECTO

© This bill was filed as House Bill No. 6191 in the Third Regular Session of the Sixteenth Congress.

Pave 2 of 13


veoees enn)

10
wu
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENATIVES

2611

H. No.

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
PROVIDING FOR A BILL OF RIGHTS FOR AIR PASSENGERS, PENALIZING
VIOLATIONS THEREOF, AND FOR OTHER PURPOSES

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 as the “Air Passenger Bill of Rights
Act.”

Sec. 2. Declaration of Policy and Objectives. ~ 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
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.

SEC. 3.Definition of Terms. ~ For the purpose of this Act, the term:

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

(b) “Airline Ticket” or “Ticket” refers to the document that sets forth in writing the
contract of air carriage that contains all the stipulations agreed upon by the air carrier and the
passenger, the relevant provisions of this Act and all other laws, treaties, or international
agreements concerning air carriage:

(©) “Baggage” refers to any personal property carried by the passenger which has
been checked-in with the air carrier;

(a) “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 cancelation is due to air carrier's fault;
2) Cancellation by the air carrier after an unduly long delay;and

3) Failure of the passenger to board a particular flight or a situation deemed
cancelled as provided under this Act;
(e) “Check-in Deadline” refers to a reasonable timebefore the published ETD as maybe
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;

Page 1 of 13


COoVaunaunn

10
a
2
3
14
15
16
v7
18
19
20
21
2
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

(f) “Check-in Period” refers to the time when the air carrier’s check-in counters are
open to accept and process 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;

(g) “Confirmed Reserved Seat” refers to a seat which has been requested by a passenger
on a specific date and on a specific flight and class of service of a carrier, and which the carrier
or its agent has verified, by appropriate notation on the ticket, as being reserved for the
accommodation of the passenger:

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

(i) “Delay” refers to the deferment of a flight to a later time:

(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, andthe
carrier’s tariff requirement, is not allowed to board the aircraft;

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

(1) “Fare” refers to the payment in consideration for the carriage of a passenger but shall
not include charges for ancillary services;

(m) “Flight Deviation” refers to the change in the airport of origin or destination;

(n) “Free Tickets” refer to tickets provided by carriers to passengers, tickets available
for free to employees, tickets claimed based on mileage, and other tickets received through sales
promotions and other similar means which do not have confirmed status, are subject to space
availability, and do not qualify as either regular or promotional fare:

(0) “General Sales Agent” refers to a natural or juridical personwho is not a bona fide
employee of an air carrier and who, as authorizedby the air carrier, by itself or through an agent,
sells or offers to sell any air transportation, or negotiates for, or holds himself out for solicitation,
advertisement or otherwise as one who sells, provides, furnishes, contracts, or arranges for such
air transportation;

(p) “Government Requisition of Space” refers to a formal request by the government or
its agencies to an air carrier company 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 CAB which, in tum, shall make a request to the airline concerned, detailing
the number, identities and affiliation of the persons requesting for space and the date, time, and
destination of the flight;

(q) “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;

(r) “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)
cach time;

(8) “Off-loaded Baggage” refers to baggage which has either not been checked-in or
checked in but subsequently removed from the cargo hold of the carrier;

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

Page 2 of 13


COVNauneunne

10
11
12
13
14
15
16
7
18
19
20
21
2
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
a2
43
44
45
46
a7

(u) “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;

(v) “Person with Disability” or “PWD” refers to persons 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;

(w) “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 and non-scheduled services;

(x) “Promotional Fare”, refers to fare that is generally lower than a regular fare, and is
offered only for a specific limited period. Promotional fare includes, but is not limited to, offers
of “no-frills” fare, wherein the non-essential features for flights have been removed to keep the
price low, and discounted fares, which require prior approval by the CAB;

(y) “Regular Fare” refers to any fare that is offered on a regular basis, is non-discounted,
and offers the advantage of cancellation, flight itinerary amendments, rerouting, rebooking,
among others, by the passenger, whether or not subject to a fee or penalty;

(2) “Sales Promotion” refers to techniques intended for broad consumer participation
which contain promises 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/or goodwill of a product; and

(aa) “Scheduled Services” refer to an arrangement wherein an air carrier follows a fixed,
regular, and published timetables and routes and which does not have the flexibility in terms of
time, schedules, routes and choices of airports and similar operational characteristics.

(bb) “Tarmac Delay” refers to a delay that occurs while passengers are already on board
the aircraft;

(cc) “Terminal Delay” refers to a delay that occurs while passengers are still inside the
terminal waiting for boarding.

Sec. 4.Scope of Application. ~ This Act shall apply to all aspects of contracts 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 air carriers, flights and 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 provision 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. In cases of treaties or
convention where the Philippines is not a signatory, the provisions of such treaty or convention
shall have the suppletory effect in the implementation of this Act insofar as the same are not

contrary to the provisions contained herein.
CHAPTER II
CONTRACT OF CARRIAGE BY AIR

SEC. 6.Contract of Air Carriage. ~By the contract of air carriage, an air carrier obliges to
transport the passenger or one’s baggage, if any, from one place to another, through airspace,
without any damage or injury upon the passenger, or loss, damage or unreasonable deterioration
of the passenger’s baggage, if any, and when the passenger obliges to pay a just and reasonable
air fare.

Page 3 of 13


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 the
passenger, who accepts and holds it in possession, with the corresponding 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 air carriage is
effective.

Sec. 9.Presumption of Negligence. — In case of damage or injury to the passenger, or
loss, damage, or unreasonable deterioration of the passenger's baggage, if any, the air carrier
shall be presumed negligent, unless it is proven that the latter exerted extraordinary diligence to
avert the same.

Diligence observed in the selection and supervision of employees shall provide no relief
against the presumption of negligence. Air carriers may be held liable for failure to exercise
diligence in the selection and supervision of employees, pursuant to provisions of Republic Act
No. 386, as amended, otherwise known as “The Civil Code of the Philippines.”

In the case of carriage of goods and baggage, the presumption of negligence shall not
apply if the loss, damage, or unreasonable deterioration is caused or occasioned by any of the
following:

(a) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

(b) Act of the public enemy in war, whether international or civil;

(c) Act or omission of the shipper or owner of the baggage/goods;

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

(ce) Order or act of competent authority.

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

(a) Infrastructure limitation as certified by the CAAP;

(b) Safety reasons due to a technical problem;

(c) Security reasons; or

(d) 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.Statutory 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, 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) Fare and other fees and ancillary charges (taxes, insurance, fuel surcharge, seat
reservation, etc.);

(b) Travel restrictions;

(c) Baggage allowance and limitations;

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

Page 4 of 13


CoVvausune

10
a
12
13
14
15
16
17
18
19
20
2a
22
2B
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

45
46
47
48
49
50

(©) Air carrier’s responsibilities and passenger’s rights and compensation for delayed
and cancelled flights, for deaths and injuries and lost,delayed or damaged baggage;

(0) Air carriers® liability limitation;

(g) Procedures for claims against the air 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,
or incorporate such terms and conditions of carriage by reference.

Incorporation by reference means that the ticket or 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 or delivered by post or electronic
‘mail to a passenger upon request.

The air carriers are required under this Act to post in their website, or other online
accounts, the information which a passenger has a right of full access and disclosure.

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 the 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 include an agreement, in English and Filipino, to the terms
and conditions specific to the ticket purchased.

SEC. 15.Advertisement. — Advertisement 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;

(c) Government taxes and fuel surcharges;

(d) Other fees and charges;

(e) Contact details of the carrier which include phone numbers, websites, electronic
mailing addresses, and other online accounts;

() 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
otheravailable information portal or office where the passenger can read or ask for the full terms
and conditions of the fare and the air passenger bill of rights; and

(g) 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.

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 services that they
purchased. An air carrier shall not deny nor diminish any service that an air passenger has paid
for: Provided, That an air carrier may upgrade its services in favor of a passenger free of charge,
subject to the consent of the passenger.

Page 5 of 13


CaVanaunne

10
uw
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
a
42
43
44
45
46
47

49
50

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 persons concerned are required to show competent proof of
identity, such as identification cards issued by duly-recognized public and private educational
stitutions, and government agencies and instrumentalities.

A student availing of the discount must be enrolled in a duly-recognized academic,
vocational or technical school or institution at the time of the purchase of the airline ticket. For
the purposes of this Act, the discount on regular fares shall not be extended to students taking up
post-graduate courses like medicine, law, and master’s and doctorate degrees, as well as those
enrolled in short-term training courses and seminars.

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 regular fare and the promotional fare shall be offered to the passenger.

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

SEC. 18.Right fo Refund. — Every passenger holding a refundable airline ticket shall have
the right to the refund of fares and payments made for optional services. This includes the refund
of terminal fees and other fees such as checked baggage fees, insurance, and seat selector fees, 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 ancillary services charges, 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 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 and terminal fees.

Sec. 20.Right 10 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 for in the rebooking policy.

SEC. 21.Right (0 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, therefor, 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 of 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.

SEC. 22.Right to 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

Page 6 of 13,


weVaoununn

10
ca
12
13
14
15
16
7
18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
4
42
43

45
46
47
48
49
50

concerns, 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
lation 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 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.

SEC, 24.Right (0 be Respected. ~ Air passengers shall have the right to be respected at all
times by the air carrier. Airline employees and crew shall serve all passengers with utmost
courtesy and respect.

vi

D, RIGHT TO SAFETY

SEC, 25.Right to Obtain 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 to proper application of first aid procedures during
emergency situations or when the passenger’s health requires it. Air carriers shall train flight
personnel and crew in handling and responding to emergency situations and shall provide at least
one (1) flight crew who possesses a certification in first-aid application. An air carrier shall
always inform its passengers of emergency measures in cases of evacuation before the start or
during the first hour of flight.

A passenger has a right to disembark from an aircraft when in the passenger's
determination, continuing the journey or being onboard the aircraft constitutes a risk to health.
‘The air carrier personnel 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 comfortable cabin ventilation.

SEC. 26.Right to Bring Action, Satisfaction, or Relief of a Wrong or an Injury. — Every
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.

SEC. 27.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, and loss or unreasonable 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 in this Act or in
any other laws or treaties concerning air transportation.

An air carrier liable for any of the required compensation provided under this Act shall
make the same available to the affected passenger at the air carrier’s counter 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 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.

SEC. 28.Rights of a Passenger for Delayed Flights. — Every passenger has a rightto be
compensated for flights not flown within a reasonable time from the ETD. The provisions of this,

Page 7 of 13


weervausune

10

12
13
14
1s
16
7
18
19
20
2.
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

41
42
43

45
46
47
48
49
50

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, a passenger shall have the right to:

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

(2) Be provided immediately with a minimum level of careat terminals and/or stations
while waiting for the beginning or the continuation of the delayed journey:

(3) Be offered, free of charge: (i) sufficient meals and refreshments within a reasonable
period covering the waiting time: (ii) free phone calls, text messaging, facsimile, electronic mail,
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
children, pregnant women, senior citizens, and PWDs.

(4) Declare the cancellation of reservation and be entitled for refund or rebooking in
accordance with Sections 18 and 20 hereof; or ask for endorsement to another carrier.

(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.

(©) Arrival Delay

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

If the 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) 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 the
reason of the delay: Provided, That in case of connecting flights with other carrier/s, 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 the journey.

SEC. 29.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) Ifa flight is cancelled due to a cause attributable to the air carrier, a passenger shall
have the right to:

(1) Be notified of the situation beforchand or as soon as possible via public
announcement, written or published notice, and flight status update service either through short
message service or electronic mail;

(2) Be provided immediately with a minimum level of careat terminals and/or stations;

(3) Be offered free of charge: (i) sufficient meals and refreshments within a reasonable
period covering 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; (iii) transportation service between the airport and the place of

Page 8 of 13


Corvaunsunn

10
a
2
3
14
15
16
7
18
19
20
21
2
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
a
42
43
44
45
46
a7
48
49

accommodation; (iv) free phone calls, text messaging, facsimile, electronic mail, or other means
of communications; (v) free internet access; and (vi) 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
children, pregnant women, senior citizens, and PWDs;

(4) Be reimbursed within five (5) days, either in 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, subject to the
provisions of Sections 10 and 19 hereof.If the 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 costs 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.

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 the air carrier.

(b) In case the air 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 flight to another future flight, subject to the payment of the fare
difference, if any;

(2) Reimburse the value of the fare;

(3) Be endorsed 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. 30.Rights of a Passenger 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 case 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 or 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 sanctioned by the CAAP or
legal order of the authorities, the passenger concemed shall be entitled to refund, rebooking or
endorsement to another carrier subject to the 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

Page 9 of 13


CeVauaune

10

12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45,
46
47
48
49
50

(d) Incase 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 children shall be given
preference against denied boarding.

Sec. 31. Filling-Up of Empty Seats. ~ Vacant seats due to cancellations by passengers
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.

SEC. 32.Loss, Damage, and Delay of Baggage. ~ Every passenger has a right
tocompensation 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:

(a) For international flights, twenty dollars(USD20) per kilogram for checked-
inbaggage and four hundred dollars (USD400) for hand-carried baggage.

(6) 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 concernedat the soonest practicable time and in
such manner that the passenger shall readily know that the 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, notwithstanding the announcement that
the baggage shall be loaded 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 the passenger's 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.

Damaged baggage shall be compensated at one hundred pesos (P100.00) 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, rates in item (a) under this paragraph shall apply.

SEC. 33.Compensation for Death and Bodily Injuries. -

(a) _In 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) In case of domestic flights, the passenger shall be entitled to the compensation
subject to the provision of the contract of carriage or the compensation as provided in the
provision of the relevant convention, in its Philippine currency equivalent, whichever is higher.

SEC. 34. 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

Page 10 of 13


wearvan

10
uv
12
13
14
15
16
7
18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

45
46
47
48
49

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. 35.Prevention of Harm to Passengers and Maintenance of Aircrafis. -An air cartier
shall prevent harm and hazard to passengers by adhering to all regulations on the airworthiness
of the aircraft, complying with rules on hazardous materials, protecting the passengers from
unreasonable harm, and actively responding to harm caused by aircraft structure, materials and
chemicals.

SEC. 36.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
counterdedicated for a flight nearing check-in deadline to facilitate the check-in of passengers at
least an hour before the published ETD.

SEC. 37.Special Accommodation of PWDs, Persons with Special Needs, Senior Citizens,
Pregnant Women and 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 shall,
whenever applicable, form part of this Act as far as the passenger in this section are concerned:

(a) Batas Pambansa Ble. 344;

(b) Republic Act No. 7277 or theMagna Carta for Disabled Persons, as amended by
Republic Act No. 9442 and Republic Act No. 10754; and

(©) Republic Act No. 7432, as amended by Republic Act No. 9257 and Republic Act
No. 9994 or the Expanded Senior Citizens Act.

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

Air carriers and its agents, in coordination with the agencies charged with protecting the
rights and welfare of the above-mentioned passengers, shall implement a system allowing these
groups of people ample and convenient opportunities 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 to
PWDs, persons with special needs, senior citizens, pregnant women and children.

Sec. 38.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 exce:
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;

(c) Provide the interested passenger/s or volunteer/s 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 where 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
number of required volunteers are met.

s of the actual seat capacity of the

Page 11 of 13


eavaonsunne

10
1
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

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

SEC. 39.Duty of the Carrier in the Event of Flight Deviation. ~ In case of flight deviation,
the 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 originally-designated destination, as the case may be.

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

SEC, 40.Provision of Assistance Desk. — Air carriers shall provide Customer Service
Representatives (CSR) who can address common problems in situ, which include arranging for
meals and/or hotel accommodation for stranded passengers, writing checks for denied boarding
compensation, resolving baggage issues, and settling other routine claims or complaints.

In addition, the CAB shall provide for 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 complaints.

SEC. 41.Remedies of the Passengers. — Every passenger whose rights provided in this Act
have been violated shall have the remedies as may be respectively set by the CAB under the
rules and regulations to be promulgated to effectively carry out the proper implementation of this
Act, including, but not limited to: (i) assistance in filing, processing and documenting
complaints; (ii) negotiating for a resolution acceptable to the affected passengers and the air
carrier; and (iii) elevation of complaint/s to appropriate authorities.

Sec, 42.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. 43./mmediate 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 passenger concerned at the soonest practicable time and in such manner that the
passenger shall readily know that the baggage has been off-loaded and the reason
thereof Subsequently, the air carrier shall make the appropriate report and give the passenger a
copy thereof, notwithstanding the announcement that the baggage shall be loaded on the next
flight.

CHAPTER V
OBLIGATIONS OF THE CAAP, CAB AND AIRPORT OPERATORS

SEC. 44.Availability of Check-in Counters. — The CAAP, airport authorities or airport
operators, as the case may be, shall provide an 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 shalll the queue exceed twenty (20) persons per check-in counter.

SEC. 45.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.

SEC. 46.Complaint Desk. — The CAB shall provide the necessary personnel to cater to
unresolved complaints of passengers 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

Page 12 of 13


CoVaunasune

10
oe
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

49
50

REMEDIES AND GRIEVANCE PROCEDURES

Sec. 47.Amicable Settlement. — The passenger and the air carrier shall exhaust all efforts
towards settling disputes 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
case.

CHAPTER VII
PENAL PROVISIONS

Sec. 48.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, as
amended; Republic Act No. 7394 or the Consumer Act of the Philippines, as amended; Republic
Act No. 9442; Batas Pambansa Blg. 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
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.

SEC. 49.Review of Penalties. - The CAB, in coordination and in 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 VIIL
FINAL PROVISIONS

Sec. 50. Report to Congress. The DOTC, in coordination with the DTI, CAAP, CAB,
airport operators and air carriers, shall submit to Congress, either in printed form or by way of
electronic document, an annual report on the status of implementation of this Act. The
information contained in the report shall include, but not be limited to:

(a) complaints filed by passengers;

(b) all pertinent information on managed and resolved complaints by the DTI, CAAP,
CAB, airport operators and air carriers.

The Secretary of Transportation and Communications and the Agency's web
administrator or equivalent shall be responsible for ensuring that said reports are posted on the
Agency’s official website.

Sec. 51. 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
inued implementation of this Act shall be included in the annual General Appropriations

francl

co
Act.

SEC. 52./mplementing Rules and Regulations. ~ Within sixty (60) days from the
effectivity of this Act, the CAB shall, in coordination with the DOTC, DTI and CAAP, and after
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.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.

SEC. 54.Repealing Clause. ~All laws, executive orders, presidential decrees, issuances,
rules and regulations or parts thereof inconsistent with the provision of this Act are hereby
repealed or modified accordingly.

Page 13 of 13,


1 Sec. 55. Effectivity. — This Act shall take effect fifteen (15) days following its publication
2 inat least two (2) newspapers of general circulation or in the Official Gazette.
3 Approved,