THE AIRCRAFT AND CIVIL AVIATION

APPLICABLE LAWS. The New Civil Code provisions on Common Carriers apply to transportation by air.
Hence, the discussions in Chapters 1 to 5 of this work on common carriers likewise apply to airline
companies.

Civil aviation is governed by R.A. 9497 otherwise known as the Civil Aviation Authority Act of 2008 which
was passed on March 4, 2008 as well as the Civil Aviation Regulations issued by the Civil Aviation
Authority of the Philippines (CAAP). The economic regulation of air transportation is governed by R.A.
776 and the regulations issued by the Civil Aeronautics Board pursuant thereto.

CAAP – Civil aviation authority of the Philippines

REGULATORY PERSPECTIVE

- Authority to operate air services is granted by legislature

- Subject to other laws e.g. RA 776
- regulatory power to the CAB over the economic aspect of air transportation. Third, there is a
very significant public interest in state regulation of air travel in view of considerations of public
safety, domestic and international commerce, as well as the fact that air travel necessitates
steady traversal of international boundaries, the amity between nations.

Registration of aircraft

"Philippine aircraft" means an aircraft registered in the Philippines in accordance with the requirements
of the Civil Aviation Authority Act of 2008. This is consistent with Article 17. Chapter III of the Chicago
Convention which provides that "aircraft have the nationality of the State in which they are registered."
The Chicago Convention likewise provides that every aircraft engaged in international air navigation shall
bear its appropriate nationality and registration marks."

a. The Chicago Convention provides that "an aircraft cannot be validly registered in more than one
State, but its registration may be changed from one State to another."
b. Aircraft registration is made in accordance with the following provisions of the Civil Aviation
Authority Act of 2008.
c. The State of Registry refers to the State on whose register the aircraft is entered." Hence, an aircraft
is a Philippine National if the same is registered with the Civil Aviation Authority of the Philippines,"
The Certificate of Registration issued by the Civil Aviation Authority of the Philippines" shall be
deemed conclusive evidence of nationality for international purposes." The Certificate of
Registration shall be carried aboard the aircraft in all its operations.
d. The CAAP is given the sole authority to register aircraft and liens, mortgages or other interests in
aircraft or aircraft engines.

An aircraft shall be eligible for registration if the following requirements are present

(1) The aircraft is owned by or leased to a citizen or citizens of the Philippines or corporations or
associations organized under the laws of the Philippines at least sixty per centum (60%) of whose capital
is owned by Filipino citizens; and
(2) The aircraft is not registered under the laws of any foreign country.
Exceptionally, foreign-owned or registered aircraft may be registered if utilized by members of aero
clubs organized for recreation, sport or the development of flying skills as a prerequisite to any
aeronautical activities of such clubs within the Philippine airspace.

No aircraft can be operated in the Philippine unless it displays nationality and registration marks.
Permanent marking of aircraft nationality and registration shall be painted on the aircraft or affixed by
other means ensuring a similar degree of permanence. The nationality mark for Philippine registered
aircraft is "RP."

The certificate of registration is conclusive evidence of ownership, except in a proceeding where such
ownership is, or may be, at issue.

SOVEREIGNTY AND AIR FREEDOMS. The fundamental principle stated in the Chicago Convention relates
to the sovereignty of the contracting States. Article 1 of Chapter I thereof provides that "the contracting
States recognize that every State has complete and exclusive sovereignty over the airspace above its
territory." Hence, consent is necessary for other States to operate within the territory of another.

The bilateral system of air traffic negotiations is in force under the Chicago Convention." "Before airlines
of treaty partners are able to launch air services to, through and from another partner's territory, the
convention requires that the two governments shall have negotiated a bilateral treaty between them
that will define the air traffic rights each grants to the other during the life of the treaty." The resulting
agreement is known as the Air Services Agreement.

FREEDOMS OF THE AIR

The air traffic rights that may be agreed in the Air Services Agreement upon are referred to as the
freedoms of the air.

Cancellation of commercial agreement - the CAB has ample power under its organizing charter, to
compel an airline, in proper cases, to terminate whatever commercial agreements the carrier may have.

OBLIGATIONS OF CARRIER IN AIR TRANSPORTATION

EXTRAORDINARY DILIGENCE IN AIR TRANSPORTATION. Due diligence in air transportation includes the
obligation to make sure that the aircraft is airworthy, that the vessel has a competent captain and crew,
and that the captain and his crew exercised extraordinary diligence in operating the aircraft.

Extraordinary diligence likewise requires the carrier to provide competent and well-trained crew. This
duty is therefore not complied with if the pilot had been inflicted with a tumor for a long time.

The carrier is likewise deemed to have failed to exercise extraordinary diligence if the plane did not take
the designated route and the tragic crash could have been avoided had it taken said designated route.

ISSUANCE OF TICKETS. The issuance of a confirmed ticket by an airline "is a guarantee to the passenger
that the airline would honor the tickets, assure him of a space in the flight, and transport him for that
segment of his trip corresponding to the confirmed ticket."

It follows that the carrier must make sure that the entries in the tickets are correct including the date
and time of the flight.
AIRWORTHINESS. Airworthiness is an important requirement in transportation by air. Like vessels,
aircrafts that are used by common carriers must also be fit to transport goods and passengers. The
aircraft must be in such a condition that it must be able to withstand the rigors of the flight. Section 3
of the Civil Aeronautics Act of 2008 explains that "airworthiness" means that an aircraft, its engines,
propellers, and other components and accessories, are of proper design and construction, and are safe
for air navigation purposes, such design and construction being consistent with accepted engineering
practice and in accordance with aerodynamic laws and aircraft science.

Examples of breach of contract of carriage

- Physical injuries to passengers

- Downgrading and upgrading of passengers
- Delay and diversion of flight
o XPN: Due to fortuitous event.
o It does not terminate the contract
o Carrier is still obligated to make necessary arrangements to transport the passenger on
the first available flight.
o To look after the convenience and comfort of passengers
- Rude treatment
o There is also a breach of contract when airport staff are rude to passenger
- Overbooking
o When the overbooking does not exceed 10%, it is not considered as deliberate and does
not amount to bad faith
- Cancellation due to engine malfunction
- Denied boarding passengers
o general rule is that the air carrier is duty bound to accept and board a passenger with
confirmed tickets if the passenger presents himself on time in the airline counter in the
airport.
o There would be breach of contract on the part of the carrier if its employees will refuse
to accept the passenger with confirmed tickets. The passenger has every right to expect
that he be transported on that flight and on that date.
o If he is not so transported, then the carrier opens itself to a suit for breach of contract of
carriage.
o Under the Civil Aviation Regulations, an operator may deny transportation if a passenger
(1) refuses to comply with the instructions regarding exit seating restrictions prescribed
by the CAAP; or (2) has handicap that can be physically accommodated only by an exit
row seat.
- The carrier is likewise not deemed to have exercised extraordinary diligence if it did not exercise
its duty to inspect
o Unlike buses or jeepneys, passengers and goods in aircrafts are subject to rigorous
inspection
o Under R.A. 6235, the carrier is bound to inspect and investigate suspicious packages that
are being brought into the aircraft.
BILL OF RIGHTS OF PASSENGERS

- "air carrier ticket constitutes a contract of carriage between an air carrier and a passenger,
whereby the air carrier, for consideration, obligates itself to transport a passenger by air safely,
efficiently and conveniently along a stipulated route at a given date and time, subject to certain
conditions and restrictions."
- It further provides that "such a contract of carriage creates an asymmetrical relationship
between an air carrier and a passenger, considering that, while a passenger has the option to
buy or not to buy the service, the decision of the passenger to buy the ticket binds such
passenger, by adhesion, to all the conditions and/or restrictions attached to the air carrier ticket
on an all-or-nothing basis, without any say, whatsoever, with regard to the reasonableness of
the individual conditions and restrictions attached to the air carrier ticket."

Inspections of aircraft and cargo

The duty to inspect aircraft is mandated under R.A. 6235 which prohibits acts inimical to civil aviation.

(1) Aircraft companies which operate as public utilities or operators of aircraft which are for hire are
authorized to open and investigate suspicious packages and cargoes in the presence of the owner
or shipper, or his authorized representatives if present; in order to help the authorities in the
enforcement of the provisions of R.A. 6235. If the owner, shipper or his representative refuses to
have the same opened and inspected, the airline or air carrier is authorized to refuse the loading
thereof.
(2) Every ticket issued to a passenger by the airline or air carrier concerned shall contain among others
the following condition printed thereon: "Holder hereof and his hand-carried luggage(s) are subject
to search for, and seizure of, prohibited materials or substances. A holder who refuses to be
searched shall not be allowed to board the aircraft and such condition shall constitute a part of the
contract between the passenger and the air carrier."

The Director General of the CAAP is authorized to have access to all civil aircraft for their inspection. The
Director General is also authorized to detain civil aircraft if:

(1) The aircraft may not be airworthy; or mentally capable for the flight; or
(2) The airman may not be qualified or physically or
(3) The operation would cause imminent danger to persons or property on the ground.

Jurisprudence

- It is the duty of the carrier to make inquiry as to the general nature of the articles shipped and
its value before it consents to carry them
- Failure to do so will not defeat the right of the shipper
- However, where a common carrier has reasonable ground to suspect that the offered goods are
of a dangerous or illegal character, the carrier has the right to know the character of such goods
and to insist on an inspection, if reasonable and practical under the circumstances, as a
condition of receiving and transporting such goods.
WARSAW CONVENTION

The Warsaw Convention to which the Republic of the Philippines is a party and which has the force and
effect of law in this country applies to all international transportation of persons, baggage or goods
performed by an aircraft gratuitously or for hire.

Constitutionality

- The Court explained that "the treaty which is the subject matter of this petition was a joint
legislative executive act. The presumption is that it was first carefully studied and determined to
be constitutional before it was adopted and given the force of law in this country.

The Warsaw Convention on Air Transport applies to international air carriage. The Warsaw Convention
provides that the carrier is liable in international air transportation for loss, damage or delay in the
delivery of cargoes and death or injury to passengers.

- Does not apply to consignee/consignor

- Experimental trials

MEANING OF INTERNATIONAL TRANSPORTATION. There is international transportation within the

contemplation of the Warsaw Convention when:

(1) The place of departure and the place of destination are within the territories of two contracting
countries regardless of whether or not there was a break in the transportation or transshipment;
(2) The place of departure and the place of destination are within the territory of a single contracting
country if there is an agreed stopping place within a territory subject to the sovereignty, mandate or
authority of another power, even though the power is not a party to the Convention."

PERIOD COVERED BY INTERNATIONAL TRANSPORTATION.

International transportation by air under the War saw Convention means the period during which the
baggage or goods are in charge of the carrier, whether in an airport or on board an aircraft, or, in the
case of a landing outside an airport, in any place whatsoever." It does not cover any transportation by
land, by sea, or by river performed outside an airport.

WHEN INTERNATIONAL CARRIER IS LIABLE. The carrier is liable if:

(1) there is death or an injury to a passenger;

(2) the death on injury was caused by accident; and
(3) the accident happened on board, the aircraft, or while the passenger is embarking or disembarking.

"We conclude that liability under Article 17 of the Warsaw Convention arises only if a passenger's injury
is caused by an unexpected or unusual event or happening that is external to the passenger.

The liability of the carrier for injuries to passengers under the Warsaw Convention in 200,000 francs.
However, by special contract, the carrier and the passenger may agree to a higher limit of liability.
DEFENSES AGAINST LIMIT OF LIABILITY. The limit of liability is not applicable in case of

(1) willful misconduct,

(2) gross negligence,
(3) absence of baggage check,
(4) if there was waiver on the part of the carrier, and
(5) if the carrier is estopped from invoking the provision on limit of liability.

Defenses against liability

Other provisions of the Warsaw Convention provide other defenses that may be raised by the carrier.
For example, Article 20(1) provides that "the carrier is not liable if he proves that he and his agents have
taken all necessary measures to avoid the damage or that it was impossible for him or them to take such
measures." On the other hand, Article 21 provides that "if the carrier proves that the damage was
caused by or contributed to by the negligence of the injured person the Court may, in accordance with
the provisions of its own law, exonerate the carrier wholly or partly from his liability."

TORT LIABILITY. The Warsaw Convention does not provide for an exclusive enumeration of instances
when the carrier is liable. It does not provide for an absolute limit of liability and it does not preclude the
application of the Civil Code and other pertinent local laws. Hence, a complaint for quasi-delict can still
be filed even if the filing is beyond the prescriptive period provided for under the Convention so long as
it is within the prescriptive period of four years under the Civil Code.

Jurisprudence:

The Warsaw Convention does not operate as an enumeration of the instances of an airline's liability, or
as an absolute limit of the extent of that liability

Within our jurisdiction we have held that the Warsaw Convention can be applied, or ignored, depending
on the peculiar facts presented by each case. Thus, we have ruled that the Convention's provisions do
not regulate or exclude liability for other breaches of contract by the carrier or misconduct of its officers
and employees, or for some particular or exceptional type of damage. Neither may the Convention be
invoked to justify the disregard of some extraordinary sort of damage resulting to a passenger and
preclude recovery therefor beyond the limits set by said Convention.

"In United Airlines u. Uy, this Court distinguished between the (1) damage to the passenger's baggage
and (2) humiliation he suffered at the hands of the airline's employees. The first cause of action was
covered by the Warsaw Convention which prescribes in two years, while the second was covered by the
provisions of the Civil Code on torts, which prescribes in four years.

Venue of action

Under Article 28(1) of the Warsaw Convention, the plaintiff must bring the action for damages before:

(1) the court where the carrier is domiciled:

(2) the court where the carrier has its principal place of business;
(3) the court where the carrier has an establishment by which the contract has been made; or
(4) the court of the place of destination.

Article 28(1) of the Warsaw Convention is jurisdictional in character.

Period to file

Under the Warsaw Convention, complaint must be filed within the following period:

(1) Three days from receipt of the baggage; or

(2) Seven days from receipt of goods; or
(3) 14 days, in case of delay, counted from the time the baggage was placed at the disposal of the
passenger.

The complaint or notice of claim is a condition precedent.

When Not Applicable. It should be noted however that under Article 26 of the Warsaw Convention, the
requirement that there is a notice of claim within the given period is not applicable if there is fraud on
the part of the carrier. In addition, the failure on the part of the passenger to file a notice of claim
within the prescribed period is also excused if such delay can be attributed to the acts or omissions of
the carrier.

PRESCRIPTION. The prescriptive period under the Warsaw Convention is provided for in Section 29
thereof that provides:

Article 29

1. The right to damages shall be extinguished if an action is not brought within two years, reckoned
from the date of arrival at the destination, or from the date on which the aircraft ought to have
arrived, or from the date on which the carriage stopped.
2. The method of calculating the period of limitation shall be determined by the law of the Court
seised of the case.

NOTE: Two-year prescriptive period is not applicable for quasi-delict.

LIABILITY OF AGENT. The fact that a successive carrier is considered an agent does not necessarily
excuse the agent from liability. The agent is liable for its own negligent acts or omission in the
performance of its duties.