OBLIGATIONS OF CARRIER IN AIR TRANSPORTATION

1. 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.
a. 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.
b. 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.
AIRWORTHINESS. Airworthiness is an important requirement in
transportation by air. Like vessels, aircraft 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 is consistent with
accepted engineering practice and in accordance with aerodynamic laws
and aircraft science.

2. TARIFF SYSTEM.
A tariff is a rule or condition of air travel that regulates and binds the
airline and passengers. Tariffs are developed and imposed by air
carriers with the approval of the Civil Aeronautics Board. These tariffs
are provided for in the tickets that are binding although they are in the
nature of contracts of adhesion.
3.CARE OF BAGGAGE. With respect to goods, the failure of the
carriers to exercise due diligence in a number of cases includes in
their failure to take care of the baggage of the carrier’s passengers.

Thus, the air carriers were made liable in the following cases:
(1) The baggage of their passengers were either damaged or their
contents were lost or stolen;
(2) The baggage was transported or diverted to another place;
(3) In case of off-loading of baggage;
4) When there was delay in the delivery of the baggage; or
5) If the baggage is lost altogether.

a. Baggage or Cargo Inside the Cabin.

In connection with carry-on baggage, Part 8 of the Civil Aviation
Regulations issued by the CAAP provides:

CARRY-ON BAGGAGE
(a) No person may allow the boarding of carry-on baggage in to
the passenger cabin unless it is adequately and securely stowed in
accordance with the operator’s approved Operations Manual
procedures.
(b) No person may allow aircraft passenger entry doors to be
closed in preparation for taxi or pushback unless at least one
required crew member has verified that each article of baggage
has been properly stowed in overhead racks with approved
restraining devices or doors, or in approved locations aft of the
bulkhead.
(c) No person may allow carry-on baggage to be stowed in a
location that would cause that location to be loaded beyond its
maximum placard mass limitation.
Note: The stowage locations shall be capable of restraining the
articles in crash impacts severe enough to induce the ultimate
inertia forces specified in the emergency landing conditions under
which the aircraft was type-certified.

CARRIAGE OF CARGO IN PASSENGER COMPARTMENTS

(a) No person may allow the carriage of cargo in the passenger
compartment of an airplane except as prescribed by the
Authority.
(b) Cargo may be carried anywhere in the passenger
compartment if it is carried in an approved cargo bin that
meets the following requirements:

(1) The bin must withstand the load factors and emergency
landing conditions applicable to the passenger seats of the
airplane in which the bin is installed, multiplied by a factor of
1.15, using the combined mass of the bin and the maximum
mass of cargo that may be carried in the bin.
(2) The maximum mass of cargo that the bin is approved to
carry and any instructions necessary to ensure proper mass
distribution within the bin must be conspicuously marked on
the bin.
(3) The bin may not impose any load on the floor or other
structure of the airplane that exceeds the load limitations of
that structure.
(4) The bin must be attached to the seat tracks or to the floor
structure of the airplane, and its attachment must withstand the
load factors and emergency landing conditions applicable to
the passenger seats of the airplane in which the bin is
installed, multiplied by either the factor 1.15 or the seat
attachment factor specified for the airplane, whichever is
greater, using the combined mass of the bin and the maximum
mass of cargo that may be carried in the bin.
(5) The bin may not be installed in a position that restricts
access to or use of any required emergency exit, or of the aisle
in the passenger compartment.
(6) The bin must be fully enclosed and made of material that is
at least flame-resistant.
(7) Suitable safeguards must be provided within the bin to
prevent the cargo from shifting under emergency landing
conditions.
(8) The bin may not be installed in a position that obscures any
passenger’s view of the “seat belt” sign, “no smoking” sign, or
any required exit sign unless an auxiliary sign or other
approved means for proper notification of the passenger is
provided.

(c) Cargo, including carry-on baggage, must not be stowed in

toilets.
(d) Cargo, including carry-on baggage must not be stowed
against bulkheads or dividers in passenger compartments that
are incapable of restraining articles against movement
forwards, sideways or upwards and unless the bulkheads or
dividers carry a placard specifying the greatest mass that may
be placed there , provided that:
(1) It is properly secured by a safety belt or other tiedown
having enough strength to eliminate the possibility of shifting
under all normally anticipated flight and ground conditions.
(2) It is packaged or covered to avoid possible injury to
occupants.
(3) It does not impose any load on seats or in the floor
structure that exceeds the load limitation for those
components.
(4) It is not located in a position that obstructs the access to, or
use of, any required emergency or regular exit, or the use of
the aisle between the crew and the passenger compartment,
or is located in a position that obscures any passenger’s view
of the “seat belt” sign, “no smoking” sign or placard, or any
required exit sign, unless an auxiliary sign or other approved
means for proper notification of the passengers is provided.

(e) Cargo, including carry-on baggage, may be carried

anywhere in the passenger compartment of a small aircraft if it
is carried in an approved cargo rack, bin, or compartment
installed in or on the aircraft, if it is secured by an approved
means, or if it is carried in accordance with each of the
following: (1) For cargo, it is properly secured by a safety belt
or other tie-down having enough strength to eliminate the
possibility of shifting under all normally anticipated flight and
ground conditions, or for carry-on baggage, it is restrained so
as to prevent its movement during air turbulence.
(2) It is packaged or covered to avoid possible injury to
occupants.
(3) It does not impose any load on seats or in the floor
structure that exceeds the load limitation for those
components.
(4) It is not located in a position that obstructs the access to, or
use of, any required emergency or regular exit, or the use of
the aisle between the crew and the passenger compartment,
or is located in a position that obscures any passenger’s view
of the “seat belt” sign, “no smoking” sign or placard, or any
required exit sign, unless an auxiliary sign or other approved
means for proper notification of the passengers is provided.
(5) It is not carried directly above seated occupants.
(6) It is stowed in compliance with these restrictions during
takeoff and landing.
(7) For cargo-only operations, if the cargo is loaded so that at
least one emergency or regular exit is available to provide all
occupants of the aircraft a means of unobstructed exit from the
airplane if an emergency occurs.

DUTY TO PASSENGER.
The nature of the air carrier's duty with respect to passengers
was explained in this wise: “Airline companies are hereby
sternly admonished that it is their duty not only to cursorily
instruct but to strictly require their personnel to be more
accommodating towards customers, passengers and the
general public.
After all, common carriers such as airline companies are in the
business of rendering public service, which is the primary
reason for their enfranchisement and recognition in our law.
Because the passengers have a right to be treated with
kindness, respect, courtesy and consideration. The operation
of a common carrier is a business affected with public interest
and must be directed to serve the comfort and convenience of
passengers. Passengers are human beings with human
 feelings and emotions; they should not be treated as mere
numbers or statistics for revenue.”

Breach of contract
“is the failure without legal reason to comply with the terms of
a contract.”
It is also defined as the “failure, without legal excuse, to
perform any promise which forms the whole or part of the
contract.”
Contracts may be breached through delay, fraud or
negligence.

Where the carriers were made to pay moral damages to the

passengers including:
(1) Inattention to and lack of care for the interest of the
passenger and inordinate delay in addressing complaints or
claims;
(2) Rude and discourteous treatment by employees;
(3) Failure to provide accommodations and assistance to
stranded passengers;
(4) Cancellation of confirmed reservation and transfer or
downgrading to another class;
(5) Forcibly ejecting a passenger from a seat and transferring
him to another;
(6) Off-loading of passenger before the final destination;
(7) Bumping-off of or refusal to accept the passenger with
confirmed tickets because of erroneous entries in the tickets or
lack of indorsement or because of undue preference given to
other passengers;
(8) In case of cancellation of the flight due to typhoon, the
passenger was harangued and prevented from boarding the
replacement flight;
(9) After cancellation of a distressed flight, shuttling
passengers to different places and changing the stopping
places without prior notice

b. Physical Injuries to Passengers.

 For example, there is breach of contract if the passenger was
injured because the airline personnel failed to properly latch the
door of a serving car that swung open on takeoff and struck a
passenger‟s knee or where there was improper monitoring by
flight attendants of overhead luggage racks resulting in a suitcase
falling on a passenger‟s head.

c. Downgrading and Upgrading of Passengers.

There is breach of contract of carriage when an airline company
bumped off a passenger with confirmed reservation or
downgraded the passenger‟s seat accommodation from one class
to a lower class.
There is also breach of contract of carriage if the airline company
“upgraded the seat accommodation of a passenger.”

Thus, it was explained in Cathay Pacific Airways, Ltd. v. Spouses

Vasquez: In this case, what happened was the reverse. The
contract between the parties was for Cathay to transport the
Vazquezes to Manila on a Business Class accommodation in
Flight CX-905. After checking in their luggage at the Kai Tak Airport
in Hong Kong, the Vazquezes were given boarding cards
indicating their seat assignments in the Business Class Section.
However, during the boarding time, when the Vazquezes
presented their boarding passes, they were informed that they had
a seat change from Business Class to First Class. It turned out
that the Business Class was overbooked in that there were more
passengers than the number of seats. Thus, the seat assignments
of the Vazquezes were given to waitlisted passengers, and the
Vazquezes, being members of the Marco Polo Club, were
upgraded from Business Class to First Class. We note that in all
their pleadings, the Vazquezes never denied that they were
members of Cathay‟s Marco Polo Club. They knew that as
members of the Club, they had priority for upgrading of their seat
accommodation at no extra cost when an opportunity arises. But,
just like other privileges, such priority could be waived. The
Vazquezes should have been Consulted first whether they wanted
to avail themselves of the privilege or would consent to a change
 of seat accommodation before their seat assignments were given
to other passengers. Normally, one would appreciate and accept
an upgrading, for it would mean a better accommodation. But,
whatever their reason was and however odd it might be, the
Vazquezes had every right to decline the upgrade and insist on the
Business Class accommodation they had booked for and which
was designated in their boarding passes. They clearly waived their
priority or preference when they asked that other passengers be
given the upgrade. It should not have been imposed on them over
their vehement objection. By insisting on the upgrade, Cathay
breached its contract of carriage with the Vazquezes.”
d. Delay and Diversion of Flight. In Japan Airlines v. Court of
Appeals,29 the flight of the passenger to Manila was cancelled
because of the eruption of Mt. Pinatubo while on a stopover in
Narita Airport in Japan. The same was considered a fortuitous
event over which the carrier had no control. Moreover, the
Supreme Court reiterated the rule that airline passengers must
take such risks incident to the mode of travel. Adverse weather
conditions or extreme climactic changes are some of the perils
involved in air travel, the consequences of which the passenger
must assume or expect. Nevertheless, the fact that the flight was
cancelled due to fortuitous event does not mean that the carrier‟s
duty already ended. The carrier was still obligated to look after the
convenience and comfort of the passenger. Thus, the carrier was
obligated to make the necessary arrangements to transport the
passenger on the first available flight. In this cited case, the carrier
failed to do so and it even reclassified the passenger in question
from “transit passenger” to “new passenger.”

“ In Singapore Airlines, Ltd. v. Fernandez, the Supreme Court

reiterated the rule that delay or diversion of flight due to fortuitous
event does not terminate the contract of carriage. The carrier is
still duty-bound to safeguard the comfort, convenience and safety
of its stranded passengers.
The carrier must also communicate to its passengers the
consequences of the delay in their flight so that the passengers
can make the proper arrangements.
e. Rude Treatment.
In Northwest Airlines v. Catapang the plaintiff-respondent
Catapang was directed by his employer to go to Paris on a
business trip. As he intended to go to the United States after his
trip to Paris, he requested for a ticket that allows rebooking or
rerouting of flight. His request was granted for a fee and the
rebooking scheme was annotated in the restriction portion of the
ticket. However, he was informed that his ticket was not
“rebookable or reroutable” when he arrived in New York. He was
directed to proceed to a nearest branch of the airline company but
when he reached the branch, he was rudely informed that the
ticket was not rebookable and that he could not rebook unless he
will pay an additional amount of US$644.00. He was left without a
choice but to pay such amount.

The Supreme Court ruled that there was a breach of contract of

carriage.
(1) The carrier may be held liable for the rude and discourteous
treatment of its passengers not only by the crew inside the vessel
but also the staff in the airport as well as the staff in branch offices
of the carrier.Thus, moral damages were awarded in one case
where the passenger was subjected to very poor service, verbal
abuse and abject lack of respect and consideration.

f. Over-booking.
“In Northwest Airlines, Inc. v. Spouses Heshan” respondent
spouses and their child first checked- in their luggage at the
airport‟s “curbside check-in” near the entrance three hours early.
Since they arrived three hours early, the passengers whiled away
the time at a nearby coffee shop. When the check-in counter
opened, the respondents took to the line where they were second
in the queue. When their turn came and presented the tickets to
carrier‟s customer service agent to get the boarding passes, they
were asked to step aside and wait to be called again. After all the
other departing passengers were given their boarding passes, the
 respondents were told to board the plane without any boarding
pass given to them and to just occupy open seats therein. Inside
the plane, the respondents noticed that only one vacant passenger
seat was available, which was offered to their child, while
respondent were directed to occupy two “folding seats” located at
the rear portion of the plane. To respondents, the two folding seats
were crew seats intended for the stewardesses. The carrier was
made to pay the respondents moral damages amounting to
P500,000. The carrier “failed to satisfactorily explain why it did not
issue boarding passes to respondents who were confirmed
passengers, even after they had checked-in their luggage three
hours earlier.” The fact “that respondents did not have reserve
seats prior to checking-in did not excuse the non-issuance of
boarding passes.” “It is gathered that respondents were made to
wait for lastminute cancellations before they were accommodated
onto the plane. This, coupled with petitioner‟s failure to issue
respondents their boarding passes and the eleventh-hour directive
for them to embark, reinforces the impression that the flight was
overbooked.”

g. Cancellation due to Engine Malfunction.

In Savel- lano v. Northwest Airlines, the Supreme Court ruled
that: “When, as a result of engine malfunction, a commercial airline
is unable to ferry its passengers on the original contracted route, it
nonetheless has the duty of fulfilling its responsibility of carrying
them to their contracted destination on the most convenient route
possible.. However, moral damages cannot be awarded without
proof of the carrier‟s bad faith, ill will, malice or wanton conduct.
Neither will actual damages be granted in the absence of
convincing and timely proof of loss. But nominal damages may be
allowed under the circumstances in the case herein.”

DENIED BOARDING PASSENGERS.

GR: 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. 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. If he is not so transported, then the carrier opens itself to
a suit for breach of contract of carriage.

a. 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.
b. While an air carrier will not be liable if the passenger fails to
present himself on time at the airport counter, the burden of
proving that the passenger is a “no-show” passenger rests with the
carrier.
c. The applicable rule that should be applied when a passenger is
denied boarding is” when the denial is due to honest mistakes.

“Existing jurisprudence explicitly states that overbooking amounts

to bad faith, entitling passengers concerned to an award of moral
damages.

In Alitalia Airways v. Court of Appeals, where passengers with

confirmed booking were refused carriage on the last minute, this
Court held that when an airline issues a ticket to a passenger
confirmed on a particular flight, on a certain date, a contract of
carriage arises, and the passenger has every right to expect that
he would fly on that flight and on that date. If he does not, then the
carrier opens itself to a suit for breach of contract of carriage.
Where an airline had deliberately overbooked, it took the risk of
having to deprive some passengers of their seats in case all of
them would show up for check in. For the indignity and
inconvenience of being refused a confirmed seat on the last
minute, said passenger is entitled to moral damages. What this
Court considers as bad faith is the willful and deliberate
overbooking on the part of the airline carrier. The above-mentioned
law clearly states that when the overbooking does not exceed ten
 percent (10%), it is not considered as deliberate and therefore
does not amount to bad faith.

d. Applicability
Economic Regulation No. 7 shall apply to every Philippine and
foreign air carrier with respect to the following:
(1) flights or portion of flights within the territory of the Philippines;
(2) flights or portion of flights from the territory of the Philippines
operated by a domestic or foreign carrier;
(3) denied boarding for reasons other than no-show or
cancellations of booking voluntarily made by passengers;
(4) delayed flights; and
(5) cancelled flights.

e. Honest Mistakes.
The Economic Regulation is designed to cover only honest
mistakes on the part of carriers and excludes deliberate and willful
acts of non-accommodation. Consequently, if the carrier‟s
employee denied the boarding of one passenger because the
person given preference is a friend, the carrier would not be able
to enjoy the limitation on liability imposed under Economic
Regulation No. 7. In addition, the carrier would still be liable
independent of the reason for the denial of the boarding of a
passenger if the carrier‟s officer or employee was guilty of rude or
uncalled for conduct and the passenger was the victim of ill
treatment.

f. Overbooking

Previously, the rules provide that overbooking not exceeding 10%

of the seating capacity of the aircraft shall not be considered as a
deliberate and willful act of nonaccommodation. Section 4 of
Economic Regulation No. 7 and Economic Regulation No. 9
expressly recognize the practice of overbooking, that is, there can
be oversold flight.

h. Priority Rules
 For the purpose of determining which passenger holding
confirmed reserved space shall be denied boarding on an oversold
flight, every carrier shall observe the following priorities:
(a) Thru Passengers Over Originating Passengers — Whenever a
flight is scheduled via an Intermediate station, “Section 3 in
relation to Section 6 of CAB Economic Regulation No. 7. ^Section
3, CAB Economic Regulation No. 7. PART II — AVIATION LAW
Chapter 8 — Obligations of Carrier in Air Transportation 361 thru
passengers on board said flight shall have first priority at said
intermediate station.
(b) Connecting Confirmed Passengers — Connecting confirmed
passengers excluding stop-over passengers at any station shall have
second priority at the connecting intermediate stations.
(c) Originating Confirmed Passengers — Originating confirmed
passengers at any station shall have third priority.
(d) Passengers with Conditional Reservation Tickets — Passengers
holding conditional reservation tickets shall have fourth priority. (e)
Chance Passengers — Chance passengers shall be accommodated
on a “first come, first served” basis.43 h. The following important
terms are defined in Section 2 of Economic Regulation No. 7: (a)
“Cancellation” is the act of calling off a flight with the uncertainty of
knowing when such flight will happen. (b) “Conditional Reservation
Ticket” means a ticket sold by a domestic or foreign carrier on the
basis of a tentative listing on a specific flight, on a specific date, and a
class of service and for which space is conditionally reserved. (c)
“Confirmed Reserved Space” means space on a specific date and on
a specific flight and class of service of a carrier which has been
requested by a passenger and which the carrier or this agent has
verified, by appropriate notation on the ticket, as being reserved for
the accommodation of destination. (d) “Delay” is the act of deferring a
flight to a later time. (e) “Fare” is payment in consideration for the
carriage of a passenger. (f) “Regular Fare” is any fare that is offered
on a regular basis and does not qualify as promotional or special fare
such as free tickets provided by airlines to passengers, tickets
available for free to employees, and tickets claimed based on
mileage. 48Section 4, CAB Economic Regulation No. 7. (g)
“Promotional Fare” is any fare other than regular fare; it is a low,
special, excursion, or apex (advance purchase excursion fare) fare
which has more fences or restrictions than a regular fare. (h)
“Scheduled Domestic Carrier” refers to a Philippine carrier granted a
Certificate of Public and Convenience and Necessity (CPCN) to
operate scheduled or regular services within points in the Philippines
or to and from the territory of the Philippines. (i) “Scheduled Foreign
Carrier” refers to an air carrier who is not a citizen of the Philippines,
and/or an air carrier, at a point between the place of departure and
the place of destination. 0) “Stop-over” means a deliberate
interruption of a journey by the passenger, agreed to in advance by
the carrier, at a point between the place of departure and the place of
destination. (k) “Value of the first remaining flight coupon” means the
applicable one-way fare, including any surcharge, less any applicable
discount on the sector where boarding is denied.
i. Other rules concerning denied-boarding passengers are
provided for in Economic Regulation No. 7:

COMPENSATION FOR DENIED BOARDING AND

CANCELLATION Section 5. Procedure for Denied Boarding.
(a) If carrier intends to deny a passenger or passengers
from boarding it should first call the attention of passengers
who would voluntarily surrender their confirmed reserved
spaces in favor of other passengers;
(b) Passenger or passengers who surrendered their
confirmed reserved spaces should be offered by the air
carrier benefits in exchange for the same; and
(c) In case where the number of passengers who
volunteered to give up their seats is insufficient, the carrier
may then deny passengers from boarding in accordance
with Chapter II, and in which case it must compensate the
passenger who was denied boarding. No passenger shall
be denied from boarding for two (2) consecutive times, on
the same day except in circumstances set forth in Section
10 of this regulation.
Section 6. Cancellation.
In the event of cancellation, the carrier shall provide
passengers with the written or published statement of the
cause of the same. This section shall not apply to no show
or cancellations of booking voluntarily made by passengers.

Section 7. Amount of Compensation for Denied

Boarding.
Subject to the exceptions under Section 10 hereinafter
provided, carriers shall pay to passengers holding confirmed
reserved space and who have presented themselves for
carriage at the proper time and place and fully complied with
the carrier’s check-in and reconfirmation procedures and
who are acceptable for carriage under the carrier’s tariff,
who have been denied boarding for lack of space, a
compensation at the rate of:
(a) For passengers for domestic flights —100% of the value
of the sector not flown, plus an amount Three thousand
pesos (Php3,000.00), and
(b) For passengers for international flights — 100% of the
value of the sector not flown, plus an amount of Five
thousand pesos (Php5,000.00) or its equivalent in other
currency.
(c) In cases the airline provides for higher compensation the
same shall prevail.

If accepted by the passenger, the compensation shall

constitute liquidated damages for all damages incurred by
the passenger as a result of the carrier’s failure to provide
the passenger with confirmed reserved space.

The passenger shall in addition to the damages have priority

booking for the next available flight using the same ticket for
which he was denied boarding. This provision shall also
apply to passengers holding promotional fares.
 Section 8. Rights of Passengers in case of cancellation.
In case of cancellation for causes attributable to the carrier,
the passenger shall have the following rights:
a) The air carrier shall provide the following:
a. 1 Refreshments or meals; (breakfast, lunch, or dinner as
the case may be)
a. 2 Hotel accommodation; (conveniently accessible hotel
from the airport)
a. 3 Transportation from the airport to the hotel;
a.4 Free communication such as phone calls, text or emails;
and
a.5 First aid medicine, if necessary.

b) In case the passenger opts not to fly the ticket,

reimbursement of the value of any fare, including taxes,
surcharges, of the sector cancelled; and if both sectors are
cancelled, the carrier shall reimburse the total value of the
fare, taxes and surcharges. For reasons other than
fortuitous event, the carrier shall comply with the
requirements of Resolution 155 (2001) Rules and
Procedures Concerning Flight Schedules and Changes in
Flight Schedules of Domestic Air Carriers; and submit a
sworn statement to the Board from the concerned technical
personnel of the carrier setting forth the reasons for the
cancellation is attributable to the latter.

Section 9. Rights of Passengers in case of Delay.

In case of delay, passengers shall have the following rights:
a) Delay for more than two (2) hours — the air carrier shall
provide the following:
a.1. Refreshments or meals (depending on the time of the
flight); (breakfast, Lunch, or dinner as the case may be).
a.2. Free communication such as phone calls, text or
emails; and
a. 3. First Aid medicine, if necessary.
 b) Flight deferred until the next day — the air carrier shall
provide the following:
b. 1 Refreshments and meals (depending on the time of
flight); (breakfast, lunch, or dinner as the case may be),
b. 2 Hotel accommodation; (conveniently accessible hotel
from/to the airport),
b. 3 Free communication such as phone calls, text or
emails, b. 4 If passenger opts not to fly the remaining sector,
reimbursement of the value of any fare, including
surcharges, of the remaining sector not flown. The carrier
shall likewise comply with the requirements of Resolution
No. 155 (2001), and submit a Sworn Statement PART II —
AVIATION LAW 365 Chapter 8 — Obligations of Carrier in
Air Transportation to the Board from the concerned technical
personnel of the carrier setting forth the reasons for the
delay.

Section 10. Exceptions to Eligibility.

Denied Boarding Compensation. The carrier shall be
exempt from liability to pay denied boarding compensation
under the following instances:
(a) the flight for which the passenger holds confirmed
reserved space is unable to accommodate him because of
(1) government requisition of space;
(2) substitute of equipment of lesser capacity when required
by operational, safety and/or security reasons, and other
causes beyond the control of the carrier; subject to the
requirements set forth in the last paragraph of Sec. 8 and
Board Resolution 155 (2001).

(c) The carrier arranges for comparable air transportation, or for

other transportation accepted [i.e., used) by the passenger,
which at the time either of such arrangements is made, is
scheduled to arrive at the place of the passenger’s next stop-
over, (or, if none, at the place of his destination) not later than
three (3) hours in the case of domestic flights or not later than
four (4) hours in the case of international flights, from the
scheduled time of arrival of the flight on which he was denied
boarding or accommodation; and

The carrier shall be exempt from liability for delay and

cancellation under the following instances:
(a) The flight is canceled or delayed due to operational, safety
and/or security reasons, force majeure, weather, strikes, or
other causes beyond the control of the air carrier.
(b) Fault is attributable to passenger.

Section 11. Written Explanation and Tender of Payment.

The carrier shall:
(a) furnish passengers, in cases of denied boarding,
cancellation and delay, a written or published statement setting
forth the circumstances of denied boarding, cancellation, and
delay as herein provided in any manner practicable;
(b) tender to each such passenger who is eligible to claim the
abovementioned benefits on the day and place the denied
boarding, cancellation, or delay occurs, or at any branch or at
the main office of the carrier, at the discretion of the passenger,
a check for the amount specified or cash in case of denied
boarding, and the document necessary to claim the benefits
mentioned In cases of cancellation and delays; and
(c) if denied boarding compensation is accepted by the
passenger, the same shall relieve the carrier from any liability
for all claims for damages arising from the abovementioned
acts.

WRITTEN REPORTS
Section 12. Written Report on Denied Boarding,
Cancellation and Delay.
Carriers shall file with the Board a monthly report on the name
and addresses of revenue passengers who have been denied
boarding, or whose flights were delayed or had been cancelled
under the following categories: (
 a) Denied boarding for lack of space on a flight otherwise
normally operated;
(b) Denied boarding due to lack of space resulting from
equipment substitution to smaller aircraft;
(c) Denied boarding compensation due to other exceptions
under Section 10 of this regulation. Carriers shall attach to said
report a true copy of the manifest in which the name of each
confirmed passenger who has been denied boarding appears;
(d) Cancellation of flights in accordance with the procedure set
forth in Board Resolution No. 155 (2001)
(e) Delayed flights for more than two (2) hours; and
(f) Delayed flights resulting to deferment on the following day.

Duty to passenger
a. Breach of contract
b. Physical injuries to passengers
c. Downgrading and Upgrading of passengers
d. Delay and division of flight
e. Rude treatment
f. Over-booking
g. Cancwllation due to engine malfunctions

Denied Boarding Passengers