Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No.__2957

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO.

EXPLANATORY NOTE

This measure seeks to address the problems of airline passenger which includes
poor services, delay and cancellation of flights, baggage loss, disappearance of
reservations, and the likes

«The Constitution, Article XVII, Section 9, provides:

“Section 9. The State shall protect consumers from trade malpractice and from substandard
or hazardous products.”

The Philippine: airline industry is thriving as tourism in the country flourished,
inevitably air travel becomes the preferred mode of transportation because of its
convenience

However, the growth of the industry brings along several problems to airline
passengers as mentioned above. Hence, this proposal hopes to establish a national
policy of fair treatment of airline travelers that prohibits unfair and deceptive practices
and unfair methods of competition by air carriers.

In view of the foregoing, immediate passage of this bill is hereby sought.

MARCELINO “MARCY” R. TEODORO.

Representative, 1$* District
City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

: FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 295?

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO

AN ACT
ESTABLISHING A NATIONAL POLICY OF BASIC CONSUMER FAIR TREATMENT FOR
AIRLINE PASSENGERS

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

SECTION 1. Short Title. - This Act shall be known as the “Airline Passenger
Fairness Act of 2010.”

SECTION 2. Definition of Terms. - For the purpose of this Act, the terms

(A) " Air Carrier’ means any citizen of the Philippines who undertakes, whether
directly or indirectly or by a lease or any other arrangement, to engage in air transportation.

(B)"Air Transportation” means domestic, overseas, or foreign air transportation.

(C) "Confirmed Reserved Space" means a space on specific date and on a specific
flight and class of service carrier which has been requested by a passenger and which the
carrier or its agent has verified, by appropriate notation on the ticket or in any other manner
provided by the carrier, as being reserved for the accommodation of the passenger.

(D)'Foreign Air Carrier “ means any person, not a citizen of the Philippines, who
undertakes, whether directly or rica! or by any other arrangement, to engage in foreign
air transportation

(E) “ Secretary ' means the Secretary of Transportation and Communications

(F)'Ticket Agent’ means any person,not a carrier or a foreign air carrier and not a
bona __ fide employee of an air carrier and not a bona fide employee of an air carrier or
foreign air carrier, who, as principal agent, sells or offers for sale any air transportation, or
negotiates for, holds himself out by solicitation, advertisement, or otherwise as one who
sells, provides, furnishes, contracts or arranges for, such transportation.

SECTION 3. Unfair and Deceptive Practices and Unfair Methods of
Competition. -

(A) Duty of Secretary. - On the initiative of the Secretary of the complaint of an air
carrier, foreign air carrier, or ticket agent, and if the Secretary considers it is in the public
interest, the Secretary may investigate and decide whether an air carrier, foreign air carrier,
or ticket agent has been engaged in an unfair or deceptive practice or an unfair method of
competition in air transportation or the sale of air transportation. If the Secretary, after notice
and opportunity for a hearing, finds that an air carrier, foreign air carrier, or ticket agent is
engaged in an unfair or deceptive practice or an unfair method of competition, the Secretary
shall order the air carrier , foreign air carrier, or ticket agent to stop the practice or method.


(B) Specific Practices. - For purposes of paragraph (A), the terms’ unfair or deceptive
practice’ and unfair method of competition’ include an air carrier's failure

(1) to inform a ticketed passenger, upon request, whether the flight on which the
passenger is ticketed is overloaded;

(2) To permit a passenger's holding a confirmed reserved space on a flight to use
portions of that passenger's ticket for travel, rather than the entire ticket, regardless of the,
reason any other portion of the ticket is not used;

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

(4) To provide a consumer full access to all fares for that carrier, regardless of the
technology the consumer uses to access the fares if such information is requested by that
‘consumer;

(5) To provide notice to each passenger holding a confirmed reserved space on a
flight with reasonable prior notice when a schedule flight will be delayed for any reason
other than reasons of national security;

(6) To inform the passenger accurately and truthfully of the reason for the delay,
cancellation or diversion of a flight; -

(7) To refund the full purchase price of an unused ticket if the passenger requests a
refund within forty-eight (48) hours after the ticket is purchased;

(8) To disclose to consumer information that would enable them to make informed
decisions about the comparative value of frequent flyer programs among airlines, including -

(a) The number of seats redeemable on each flight; and

. (b) The percentage of successful and failed redemptions on each airline and on
each flight.

SECTION 4. Report. - The Secretary shall include information about violations of
Section 3 by air carriers in Air Travel Consumer Report which shall be published monthly by
the Department of Transportation and Communications.

SECTION 5. Implementing Rules and Regulations. - Within ninety (90) days after
the enactment of this Act, the Secretary, in consultation with Air Transportation Office and
the Civil Aeronautics Board Shall make rules and regulations implementing the provision of
this Act.

SECTION 6. Penalties. - Any violation of Section 3 of this Act shall result to
suspension of the certificate of public convenience of the domestic carrier, or the license to
operate of a foreign air carrier, or a fine of One Hundred Thousand Pesos (P100,000.00), or
both.

In case of grave and repetitive violations, the penalty shall be revocation of the
certificate of convenience of the domestic carrier or the license to operate of a Foreign Air
Office and the Civil Aeronautics Board, shall have conducted a hearing into the manner.

SECTION 7. Separability Clause. - If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision shall remain valid and subsisting.

SECTION 8. Repealing Clause. - Any law, presidential decree, issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,