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Republic of the Philippines
House Or REpRESENTATIV!
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

HOUSE BILL NO. 5876

Introduced by Honorable Evelina G Escudero

EXPLANATORY NOTE

This bill seeks to provide for the full refund of an airline ticket which
was cancelled by the purchaser of the ticket or the person named on the
ticket at least three days before the scheduled flight.

In 1995, Executive Order No, 219 entitled “Establishing the Domestic
and International Civil Aviation Liberalization Policy,” issued by then
President Fidel V. Ramos, liberalized the country’s civil aviation policy. The
liberalization led to the aggressive growth of the airline industry in the
Philippines and resulted in the entry of new airlines drawing effective
competition in the domestic aviation market.

Presently, the Civil Aeronautics Board approves the conditions of
carriage of Philippine-registered airlines. ‘These conditions of carriage
include the policy on refunds. Airlines, whether local or foreign, have
similar refund policies. Airlines allow voluntary refund subject to certain
conditions including the payment of service charges or cancellation fees. It
is only in cases of involuntary refunds such as if a carrier cancels a flight,
fails to operate a flight reasonably according to schedule, fails to stop at a
point to which the passenger is destined or ticketed to stop over, causes the
passenger to miss a connecting flight on which the passenger holds a
confirmed reservation, refuses carriage to a passenger in accordance with the
conditions of carriage of the airline, or is unable to provide previously
confirmed space, that an amount equal to the fare paid is fully refunded
unless a portion of the ticket has been used. In case a portion of the ticket
has been used, the refund will be the difference between the fare paid and
the applicable fare for the transportation used. There are other analogous

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circumstances indicated in the conditions of carriage of the different airlines
when refunds are granted

This proposed measure seeks to protect the rights of passengers by
granting them the privilege of availing a full refund for the amount of their
ticket, without being imposed a service charge or cancellation fee, as long as
the cancellation is made at least three days before the scheduled flight and
subject to the submission of the ticket or other supporting documents.

In view of the foregoing, approval of this bill is earnestly sought.

EVELINA G. ESCUDERO


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Republic of the Philippines
House Or REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

HOUSE BILL NO.

Introduced by Honorable Evelina G. Escudero

AN ACT
MANDATING AIRLINES TO REFUND IN FULL THE
PURCHASERS OF AIRLINE TICKETS WHO CANCEL THEIR
FLIGHT RESERVATION AT LEAST THREE DAYS BEFORE THE
SCHEDULED FLIGHT AND PROVIDING PENALTY FOR
VIOLATION THEREOF

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

SECTION 1. Airlines operating in the country are mandated to
provide full refund of the airline ticket, or any unused portion thereof, upon
cancellation at least three (3) days before the scheduled flight by the person
named on the ticket or the purchaser of the ticket without being imposed any
service charge or cancellation fee.

The refund availed of by the passenger or the purchaser of the ticket
shall be processed and released not later than seven (7) working days after
submission of complete requirements.

Only regular fare tickets purchased in the Philippines shall be covered

by this Act.

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SEC. 2. Any violation of this Act shall be punished with a fine of Ten
Thousand Pesos (P10,000.00). The fine shall be imposed for each violation
committed.

SEC. 3. Within ninety (90) days from the effectivity of this Act, the
Secretary of Transportation and Communications, in coordination with the
Secretary of Trade and Industry and the Civil Aeronautics Board, shall
promulgate the necessary rules and regulations for the effective
implementation of this Act.

SEC. 4. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a national newspaper of general
circulation

Approved,