G.R. No.

210621, April 04, 2016

ALFREDO MANAY, JR., FIDELINO SAN LUIS, ADRIAN SAN LUIS, ANNALEE SAN
LUIS, MARK ANDREW JOSE, MELISSA JOSE, CHARLOTTE JOSE, DAN JOHN DE
GUZMAN, PAUL MARK BALUYOT, AND CARLOS S. JOSE, Petitioners, v. CEBU
AIR,INC, Respondent.

LEONEN, J.:
The Air Passenger Bill of Rights[1] mandates that the airline must inform the passenger in
writing of all the conditions and restrictions in the contract of carriage.[2] Purchase of the contract
of carriage binds the passenger and imposes reciprocal obligations on both the airline and the
passenger. The airline must exercise extraordinary diligence in the fulfillment of the terms and
conditions of the contract of carriage. The passenger, however, has the correlative obligation to
exercise ordinary diligence in the conduct of his or her affairs.

This resolves a Petition for Review on Certiorari [3] assailing the Court of Appeals Decision[4] dated
December 13, 2013 in CA-G.R. SP. No. 129817. In the assailed Decision, the Court of Appeals
reversed the Metropolitan Trial Court Decision[5] dated December 15, 2011 and the Regional Trial
Court Decision[6] dated November 6, 2012 and dismissed the Complaint for Damages filed by
petitioners Alfredo Manay, Jr., Fidelino San Luis, Adrian San Luis, Annalee San Luis, Mark
Andrew Jose, Melissa Jose, Charlotte Jose, Dan John De Guzman, Paul Mark Baluyot, and Carlos
S. Jose against respondent Cebu Air, Incorporated (Cebu Pacific).[7]

On June 13, 2008, Carlos S. Jose (Jose) purchased 20 Cebu Pacific round-trip tickets from Manila
to Palawan for himself and on behalf of his relatives and friends. [8] He made the purchase at Cebu
Pacific's branch office in Robinsons Galleria.[9]

Jose alleged that he specified to "Alou," the Cebu Pacific ticketing agent, that his preferred date
and time of departure from Manila to Palawan should be on July 20, 2008 at 0820 (or 8:20 a.m.)
and that his preferred date and time for their flight back to Manila should be on July 22, 2008 at
1615 (or 4:15 p.m.).[10] He paid a total amount of P42,957.00 using his credit card.[11] He alleged
that after paying for the tickets, Alou printed the tickets,[12] which consisted of three (3) pages,
and recapped only the first page to him.[13] Since the first page contained the details he specified
to Alou, he no longer read the other pages of the flight information.[14]

On July 20, 2008, Jose and his 19 companions boarded the 0820 Cebu Pacific flight to Palawan
and had an enjoyable stay.[15]

On the afternoon of July 22, 2008, the group proceeded to the airport for their flight back to
Manila.[16] During the processing of their boarding passes, they were informed by Cebu Pacific
personnel that nine (9)[17] of them could not be admitted because their tickets were for the 1005
(or 10:05 a.m.)[18] flight earlier that day.[19] Jose informed the ground personnel that he personally
purchased the tickets and specifically instructed the ticketing agent that all 20 of them should be
on the 4:15 p.m. flight to Manila.[20]

Upon checking the tickets, they learned that only the first two (2) pages had the schedule Jose
specified.[21] They were left with no other option but to rebook their tickets. [22] They then learned
that their return tickets had been purchased as part of the promo sales of the airline, and the cost
to rebook the flight would be P7,000.00 more expensive than the promo tickets. [23] The sum of
the new tickets amounted to P65,000.00.[24]

They offered to pay the amount by credit card but were informed by the ground personnel that
they only accepted cash.[25] They then offered to pay in dollars, since most of them were
balikbayans and had the amount on hand, but the airline personnel still refused. [26]
Eventually, they pooled enough cash to be able to buy tickets for five (5) of their companions. [27]
The other four (4) were left behind in Palawan and had to spend the night at an inn, incurring
additional expenses.[28] Upon his arrival in Manila, Jose immediately purchased four (4) tickets
for the companions they left behind, which amounted to P5,205.[29]

Later in July 2008, Jose went to Cebu Pacific's ticketing office in Robinsons Galleria to complain
about the allegedly erroneous booking and the rude treatment that his group encountered from
the ground personnel in Palawan.[30] He alleged that instead of being assured by the airline that
someone would address the issues he raised, he was merely "given a run around." [31]

Jose and his companions were frustrated and annoyed by Cebu Pacific's handling of the incident
so they sent the airline demand letters dated September 3, 2008[32] and January 20,
2009[33] asking for a reimbursement of P42,955.00, representing the additional amounts spent to
purchase the nine (9) tickets, the accommodation, and meals of the four (4) that were left
behind.[34] They also filed a complaint[35] before the Department of Trade and Industry.[36]

On February 24, 2009, Cebu Pacific, through its Guest Services Department, sent petitioners'
counsel an email[37] explaining that "ticketing agents, like Alou, recap [the] flight details to the
purchaser to avoid erroneous booking[s]."[38] The recap is given one other time by the
cashier.[39] Cebu Pacific stated that according to its records, Jose was given a full recap and was
made aware of the flight restriction of promo tickets,[40] "which included [the] promo fare being
non-refundable."[41]

Jose and his companions were unsatisfied with Cebu Pacific's response so they filed a
Complaint[42] for Damages against Cebu Pacific before Branch 59 of the Metropolitan Trial Court
of Mandaluyong.[43] The Complaint prayed for actual damages in the amount of P42,955.00,
moral damages in the amount of P45,000.00, exemplary damages in the amount of P50,000.00,
and attorney's fees.[44]

In its Answer,[45] Cebu Pacific essentially denied all the allegations in the Complaint and insisted
that Jose was given a full recap of the tickets.[46] It also argued that Jose had possession of the
tickets 37 days before the scheduled flight; hence, he had sufficient time and opportunity to check
the flight information and itinerary.[47] It also placed a counterclaim of PI00,000.00 by reason
that it was constrained to litigate and it incurred expenses for litigation. [48]

On December 15, 2011, the Metropolitan Trial Court rendered its Decision ordering Cebu Pacific
to pay Jose and his companions P41,044.50 in actual damages and P20,000.00 in attorney's fees
with costs of suit.[49] The Metropolitan Trial Court found that as a common carrier, Cebu Pacific
should have exercised extraordinary diligence in performing its contractual
obligations.[50] According to the Metropolitan Trial Court, Cebu Pacific's ticketing agent " 52] It did
not find merit, however, in the allegation that the airline's ground personnel treated Jose and his
companions rudely since this allegation was unsubstantiated by evidence. [53]

Cebu Pacific appealed to the Regional Trial Court, reiterating that its ticketing agent gave Jose a
full recap of the tickets he purchased.[54]

On November 6, 2012, Branch 212 of the Regional Trial Court of Mandaluyong rendered the
Decision dismissing the appeal.[55] The Regional Trial Court affirmed the findings of the
Metropolitan Trial Court but deleted the award of attorney's fees on the ground that this was
granted without stating any ground under Article 2208 of the Civil Code to justify its grant. [56]

Cebu Pacific appealed to the Court of Appeals, arguing that it was not at fault for the damages
caused to the passengers.[57]

On December 13, 2013, the Court of Appeals rendered the Decision granting the appeal and
reversing the Decisions of the Metropolitan Trial Court and the Regional Trial
 Court.[58] According to the Court of Appeals, the extraordinary diligence expected of common
carriers only applies to the carriage of passengers and not to the act of encoding the requested
flight schedule.[59] It was incumbent upon the passenger to exercise ordinary care in reviewing
flight details and checking schedules.[60] Cebu Pacific's counterclaim, however, was denied since
there was no evidence that Jose and his companions filed their Complaint in bad faith and with
malice.[61]

Aggrieved, Alfredo Manay, Jr., Fidelino San Luis, Adrian San Luis, Annalee San Luis, Mark
Andrew Jose, Melissa Jose, Charlotte Jose, Dan John De Guzman, Paul Mark Baluyot, and Carlos
S. Jose (Jose, et al.) filed before this Court a Petition for Review on Certiorari [62]assailing the
Court of Appeals' December 13, 2013 Decision.[63]

Cebu Pacific was ordered to comment on the Petition. Upon compliance,[65] Jose, et al. submitted
their Reply.[66] The parties were then directed[67] to submit their respective memoranda.[68]

Jose, et al. argue that Cebu Pacific is a common carrier obligated to exercise extraordinary
diligence to carry Jose, et al. to their destination at the time clearly instructed to its ticketing
agent.[69] They argue that they have the decision to choose flight schedules and that Cebu Pacific
should not choose it for them.[70] They insist that they have made their intended flight schedule
clear to the ticketing agent and it would have been within normal human behavior for them to
expect that their entire group would all be on the same flight.[71] They argue that they should not
have to ask for a full recap of the tickets since they are under no obligation, as passengers, to
remind Cebu Pacific's ticketing agent of her duties.[72]

Jose, et al. further pray that they be awarded actual damages in the amount of P43,136.52 since
the Metropolitan Trial Court erroneously failed to add the costs of accommodations and dinner
spent on by four (4) of the petitioners who were left behind in Palawan.[73] They also pray for
PI00,000.00 in moral damages and P100,000.00 in exemplary damages for the "profound
distress and anxiety"[74] they have undergone from the experience, with PI00,000.00 in attorney's
fees to represent the reasonable expenses incurred from "engaging the services of their
counsel."[75]

Cebu Pacific, on the other hand, argues that the damage in this case was caused by Jose, et al.'s
"gross and inexplicable [negligence.]"[76]It maintains that Jose, et al. should have read the details
of their flight, and if there were errors in the encoded flight details, Jose, et al. would still have
ample time to have the error corrected.[77] It argues further that its ticketing agent did not neglect
giving Jose a full recap of his purchase since the tickets clearly indicated in the "Comments"
section: "FULL RECAP GVN TO CARLOS JOSE."[78]

Cebu Pacific further posits that according to the Parol Evidence Rule, the plane tickets issued to
Jose, et al. contain all the terms the parties agreed on, and it was agreed that nine (9) of the
passengers would be on the July 22, 2008, 1005 flight to Manila.[79] It argues that Jose, et al. have
not been able to present any evidence to substantiate their allegation that their intent was to be on
the July 22, 2008 1615 flight to Manila.[80]

From the arguments in the parties' pleadings, the sole issue before this Court is whether
respondent Cebu Air, Inc. is liable to petitioners Alfredo Manay, Jr., Fidelino San Luis, Adrian
San Luis, Annalee San Luis, Mark Andrew Jose, Melissa Jose, Charlotte Jose, Dan John De
Guzman, Paul Mark Baluyot, and Carlos S. Jose for damages for the issuance of a plane ticket
with an allegedly erroneous flight schedule.

Although it was not mentioned by the parties, a procedural issue must first be addressed before delving
into the merits of the case.
Petitioners received the assailed Court of Appeals Decision on December 27, 2013.[81] They chose to forego
the filing of a motion for reconsideration. Instead, petitioners filed before this Court a Motion for
Extension of Time[82] on January 13, 2014.

Under Rule 45, Section 2 of the Rules of Court,[83] petitioners only had 15 days or until January 11, 2014 to
file their petition. Since January 11, 2014 fell on a Saturday, petitioners could have filed their pleading on
the following Monday, or on January 13, 2014.

In their Motion for Extension of Time, however, petitioners requested an additional 30 days from
January 13, 2014 within which to file their petition for review on certiorari.[84]

This Court already clarified the periods of extension in A.M. No. 00-2-14-SC:[85]

Whereas, Section 1, Rule 22 of the 1997 Rules of Civil Procedure provides:

Section 1. How to compute time. - In computing any period of time prescribed or allowed by these Rules,
or by order of the court, or by any applicable statute, the day of the act or event from which the designated
period of time begins to run is to be excluded and the date of performance included. If the last day of the
period, as thus computed, falls on a Saturday, a Sunday, or a legal holiday in the place where the court
sits, the time shall not run until the next working day.
Whereas, the aforecited provision applies in the matter of filing of pleadings in courts when the due date
falls on a Saturday, Sunday or legal holiday, in which case, the filing of the said pleading on the next
working day is deemed on time;

Whereas, the question has been raised if the period is extended ipso jure to the next working day
immediately following where the last day of the period is a Saturday, Sunday or a legal holiday, so that
when a motion for extension of time is filed, the period of extension is to be reckoned from the next
working day and not from the original expiration of the period.

NOW THEREFORE, the Court Resolves, for the guidance of the Bench and the Bar, to declare that Section
1, Rule 22 speaks only of "the last day of the period" so that when a party seeks an extension and the
same is granted, the due date ceases to be the last day and hence, the provision no longer applies. Any
extension of time to file the required pleading should therefore be counted from the expiration of the
period regardless of the fact that said due date is a Saturday, Sunday or legal holiday. (Emphasis
supplied)

Thus, petitioners' request for extension of time should have been reckoned from the original due date on
January 11, 2014, even if this day fell on a Saturday. A request for extension of 30 days would have ended
on February 10, 2014.[86]

Petitioners subsequently filed their Petition for Review on Certiorari on February 12, 2014. [87] Pursuant to
A.M. No. 00-2-14-SC,[88] this Petition would have been filed out of time.

We are not, however, precluded from granting the period of extension requested and addressing the
Petition filed on its merits, instead of outright dismissing it. After all, "[l]itigations should, as much as
possible, be decided on the merits and not on technicalities."[89]

However, it does not follow that in the relaxation of the procedural rules, this Court automatically rules in
favor of petitioners. Their case must still stand on its own merits for this Court to grant the relief
petitioners pray for.

II

Common carriers are required to exercise extraordinary diligence in the performance of its obligations
under the contract of carriage. This extraordinary diligence must be observed not only in
the transportation of goods and services but also in the issuance of the contract of carriage, including its
ticketing operations.

Article 1732 of the Civil Code defines a common carrier as "persons, corporations or firms, or associations
engaged in the business of carrying or transporting passengers or goods or both, by land, water or air, for
compensation, offering their services to the public." Articles 1733, 1755, and 1756 of the Civil Code outline
the degree of diligence required of common carriers:
....

ARTICLE 1733. Common carriers, from the nature of their business and for reasons of public policy, are
bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the
passengers transported by them, according to all the circumstances of each case.

ARTICLE 1755. A common carrier is bound to carry the passengers safely as far as human care and
foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the
circumstances.

ARTICLE 1756. In case of death of or injuries to passengers, common carriers are presumed to have been
at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as
prescribed in articles 1733 and 1755.

Respondent, as one of the four domestic airlines in the country,[90] is a common carrier required by law to
exercise extraordinary diligence. Extraordinary diligence requires that the common carrier must transport
goods and passengers "safely as far as human care and foresight can provide," and it must exercise the
"utmost diligence of very cautious persons . . . with due regard for all the circumstances." [91]

When a common carrier, through its ticketing agent, has not yet issued a ticket to the prospective
passenger, the transaction between them is still that of a seller and a buyer. The obligation of the airline to
exercise extraordinary diligence commences upon the issuance of the contract of carriage.[92] Ticketing, as
the act of issuing the contract of carriage, is necessarily included in the exercise of extraordinary diligence.

A contract of carriage is defined as "one whereby a certain person or association of persons obligate
themselves to transport persons, things, or news from one place to another for a fixed price."[93] In Cathay
Pacific Airways v. Reyes:[94]

[W]hen 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.[95] (Emphasis supplied)

Once a plane ticket is issued, the common carrier binds itself to deliver the passenger safely on the date
and time stated in the ticket. The contractual obligation of the common carrier to the passenger is
governed principally by what is written on the contract of carriage.

In this case, both parties stipulated[96] that the flight schedule stated on the nine (9) disputed tickets was
the 10:05 a.m. flight of July 22, 2008. According to the contract of carriage, respondent's obligation as a
common carrier was to transport nine (9) of the petitioners safely on the 10:05 a.m. flight of July 22,
2008.

Petitioners, however, argue that respondent was negligent in the issuance of the contract of carriage since
the contract did not embody their intention. They insist that the nine (9) disputed tickets should have
been scheduled for the 4:15 p.m. flight of July 22, 2008. Respondent, on the other hand, denies this and
states that petitioner Jose was fully informed of the schedules of the purchased tickets and petitioners
were negligent when they failed to correct their ticket schedule.
Respondent relies on the Parol Evidence Rule in arguing that a written document is considered the best
evidence of the terms agreed on by the parties. Petitioners, however, invoke the exception in Rule 130,
Section 9(b) of the Rules of Court that evidence may be introduced if the written document fails to express
the true intent of the parties:[97]

Section 9. Evidence of written agreements. When the terms of an agreement have been reduced to writing,
it is considered as containing all the terms agreed upon and there can be, between the parties and their
successors in interest, no evidence of such terms other than the contents of the written agreement.

However, a party may present evidence to modify, explain or add to the terms of the written agreement if
he puts in issue in his pleading:

(a) An intrinsic ambiguity, mistake, or imperfection in the written agreement;

(b) The failure of the written agreement to express the true intent and agreement of the parties thereto;

(c) The validity of the written agreement; or

(d) The existence of other terms agreed to by the parties or their successors in interest after the execution
of the written agreement.

In ACI Philippines, Inc. v. Coquia:[98]

It is a cardinal rule of evidence, not just one of technicality but of substance, that the written document is
the best evidence of its own contents. It is also a matter of both principle and policy that when the written
contract is established as the repository of the parties stipulations, any other evidence is excluded and the
same cannot be used as a substitute for such contract, nor even to alter or contradict them. This rule,
however, is not without exception. Section 9, Rule 130 of the Rules of Court states that a party may
present evidence to modify, explain or add to the terms of the agreement if he puts in issue in his pleading
the failure of the written agreement to express the true intent and agreement of the parties. [99]

It is not disputed that on June 13, 2008, petitioner Jose purchased 20 Manila-Palawan-Manila tickets
from respondent's ticketing agent. Since all 20 tickets were part of a single transaction made by a single
purchaser, it is logical to presume that all 20 passengers would prefer the same flight schedule, unless the
purchaser stated otherwise.

In petitioners' Position Paper before the Metropolitan Trial Court, they maintain that respondent's
ticketing agent was negligent when she failed to inform or explain to petitioner Jose that nine (9)
members of their group had been booked for the 10:05 a.m. flight, and not the 4:15 p.m. flight.[100]

The first page of the tickets contained the names of eight (8) passengers.[101] In the Information box on the
left side of the ticket, it reads:

Sunday, July 20, 2008 HK PHP999.00 PHP

5J 637 MNL-PPS 08:20- 09:35
Tuesday, July 22, 2008 HK PHP999.00 PH
5J 640 PPS-MNL 16:15- 17:30[102]

In the Comments box, it reads:

R - FULL RECAP GVN TO CARLOS JOSE//AWRE

I - FULL RECAP GVN TO CARLOS JOSE//AWRE
M - FULL RECAP GVN TO CARLOS JOSE//AWRI[103]
The second page contained the names of three (3) passengers.[104] In the Information box, it reads:

Sunday, July 20, 2008 HK PHP1,998.00 PH

5J 637 MNL-PPS 08:20- 09:35
Tuesday, July 22, 2008 HK PHP999.00 PH
5J 640 PPS-MNL 16:15- 17:30[105]

Under the caption "Comments," it reads:

R - FULL RECAP GVN TO CARLOS JOSE//AWRE

I - FULL RECAP GVN TO CARLOS JOSE//AWRE
M - FULL RECAP GVN TO CARLOS JOSE//AWRI[106]

The third page contained the names of nine (9) passengers.[107] In the Information box, it reads:

Sunday, July 20, 2008 HK PHP999.00 PHP

5J637MNL-PPS 08:20-09:35
Tuesday, July 22, 2008 HK PHP999.00 PH
5J638PPS-MNL 10:05-11:20[108]

In the Comments box, it reads:

R - FULL RECAP GVNT O JOSE//CARLOS AWRE

R - NON-REFUNDBLE//VALID TIL 15 OCT08 O[109]

Respondent explained that as a matter of protocol, flight information is recapped to the purchaser twice:
first by the ticketing agent before payment, and second by the cashier during payment. The tickets were
comprised of three (3) pages. Petitioners argue that only the first page was recapped to petitioner Jose
when he made the purchase.

The common carrier's obligation to exercise extraordinary diligence in the issuance of the contract of
carriage is fulfilled by requiring a full review of the flight schedules to be given to a prospective passenger
before payment. Based on the information stated on the contract of carriage, all three (3) pages were
recapped to petitioner Jose.

The only evidence petitioners have in order to prove their true intent of having the entire group on the
4:15 p.m. flight is petitioner Jose's self-serving testimony that the airline failed to recap the last page of
the tickets to him. They have neither shown nor introduced any other evidence before the Metropolitan
Trial Court, Regional Trial Court, Court of Appeals, or this Court.

Even assuming that the ticketing agent encoded the incorrect flight information, it is incumbent upon the
purchaser of the tickets to at least check if all the information is correct before making the purchase. Once
the ticket is paid for and printed, the purchaser is presumed to have agreed to all its terms and conditions.
In Ong Yiu v. Court of Appeals:[110]

While it may be true that petitioner had not signed the plane ticket, he is nevertheless bound by the
provisions thereof. "Such provisions have been held to be a part of the contract of carriage, and valid and
binding upon the passenger regardless of the latter's lack of knowledge or assent to the regulation." It is
what is known as a contract of "adhesion," in regards which it has been said that contracts of adhesion
wherein one party imposes a ready made form of contract on the other, as the plane ticket in the case at
bar, are contracts not entirely prohibited. The one who adheres to the contract is in reality free to reject it
entirely; if he adheres, he gives his consent.[111]

One of the terms stated in petitioners' tickets stipulates that the photo identification of the passenger
must match the name entered upon booking:

Guests should present a valid photo ID to airport security and upon check-in. Valid IDs for this purpose
are Company ID, Driver's License, Passport, School ID, SSS Card, TIN Card. The name in the photo-ID
should match the guest name that was entered upon booking. Failure to present a valid photo ID will
result in your being refused check-in.[112]

Considering that respondent was entitled to deny check-in to passengers whose names do not match their
photo identification, it would have been prudent for petitioner Jose to check if all the names of his
companions were encoded correctly. Since the tickets were for 20 passengers, he was expected to have
checked each name on each page of the tickets in order to see if all the passengers' names were encoded
and correctly spelled. Had he done this, he would have noticed that there was a different flight schedule
encoded on the third page of the tickets since the flight schedule was stated directly above the passengers'
names.

Petitioners' flight information was not written in fine print. It was clearly stated on the left portion of the
ticket above the passengers' names. If petitioners had exercised even the slightest bit of prudence, they
would have been able to remedy any erroneous booking.

This is not the first time that this Court has explained that an air passenger has the correlative duty to
exercise ordinary care in the conduct of his or her affairs.

In Crisostomo v. Court of Appeals,[113] Estela Crisostomo booked a European tour with Caravan Travel
and Tours, a travel agency. She was informed by Caravan's travel agent to be at the airport on Saturday,
two (2) hours before her flight. Without checking her travel documents, she proceeded to the airport as
planned, only to find out that her flight was actually scheduled the day before. She subsequently filed a
suit for damages against Caravan Travel and Tours based on the alleged negligence of their travel agent in
informing her of the wrong flight details.[114]

This Court, while ruling that a travel agency was not a common carrier and was not bound to exercise
extraordinary diligence in the performance of its obligations, also laid down the degree of diligence
concurrently required of passengers:

Contrary to petitioner's claim, the evidence on record shows that respondent exercised due diligence in
performing its obligations under the contract and followed standard procedure in rendering its services to
petitioner. As correctly observed by the lower court,the plane ticket issued to petitioner clearly reflected
the departure date and time, contrary to petitioner's contention. The travel documents, consisting of the
tour itinerary, vouchers and instructions, were likewise delivered to petitioner two days prior to the trip.
Respondent also properly booked petitioner for the tour, prepared the necessary documents and procured
the plane tickets. It arranged petitioner's hotel accommodation as well as food, land transfers and
sightseeing excursions, in accordance with its avowed undertaking.

Therefore, it is clear that respondent performed its prestation under the contract as well as everything else
that was essential to book petitioner for the tour. Had petitioner exercised due diligence in the conduct of
her affairs, there would have been no reason for her to miss the flight. Needless to say, after the travel
papers were delivered to petitioner, it became incumbent upon her to take ordinary care of her
concerns. This undoubtedly would require that she at least read the documents in order to assure herself
of the important details regarding the trip.[115] (Emphasis supplied)

Most of the petitioners were balikbayans.[116] It is reasonable to presume that they were adequately versed
with the procedures of air travel, including familiarizing themselves with the itinerary before departure.
Moreover, the tickets were issued 37 days before their departure from Manila and 39 days from their
departure from Palawan. There was more than enough time to correct any alleged mistake in the flight
schedule.

Petitioners, in failing to exercise the necessary care in the conduct of their affairs, were without a doubt
negligent. Thus, they are not entitled to damages.

Before damages may be awarded, "the claimant should satisfactorily show the existence of the factual
basis of damages and its causal connection to defendant's acts."[117] The cause of petitioners' injury was
their own negligence; hence, there is no reason to award moral damages. Since the basis for moral
damages has not been established, there is no basis to recover exemplary damages [118] and attorney's
fees[119] as well.

III

Traveling by air for leisure is a fairly new concept to the average Filipino. From 1974, there was only one
local airline commanding a monopoly on domestic air travel.[120] In 1996, respondent introduced the
concept of a budget airline in the Philippines, touting "low-cost services to more destinations and routes
with higher flight frequency within the Philippines than any other airline." [121] In its inception, respondent
offered plane fares that were "40% to 50% lower than [Philippine Airlines]."[122]

On March 1, 2007, to celebrate its new fleet of aircraft, respondent offered a promo of P1.00 base fare for
all their domestic and international destinations.[123] The fare was non-refundable and exclusive of taxes
and surcharges.[124]

Despite the conditions imposed on these "piso fares," more people were enticed to travel by air. From
January to June 2007, respondent had a total number of 2,256,289 passengers while Philippines Airlines
had a total of 1,981,267 passengers.[125] The domestic air travel market also had a 24% increase in the first
half of 2007.[126]

Promotional fares encouraged more Filipinos to travel by air as the number of fliers in the country
increased from 7.2 million in 2005 to 16.5 million in 2010.127 The emergence of low-cost carriers
"liberalized [the] aviation regime"[128] and contributed to an "unprecedented and consistent double digit
growth rates of domestic and international travel"[129] from 2007 to 2012.

This development, however, came with its own set of problems. Numerous complaints were filed before
the Department of Trade and Industry and the Department of Transportation and Communications,
alleging "unsatisfactory airline service"[130] as a result of flight overbooking, delays, and cancellations.[131]

This prompted concerned government agencies to issue Department of Transportation and

Communications-Department of Trade and Industry Joint Administrative Order No. 1, Series of 2012,
otherwise known as the Air Passenger Bill of Rights.

Section 4 of the Joint Administrative Order requires airlines to provide the passenger with accurate
information before the purchase of the ticket:

Section 4. Right to Full, Fair, and Clear Disclosure of the Service Offered and All the
Terms and Conditions of the Contract of Carriage. Every passenger shall, before purchasing any
ticket for a contract of carriage by the air carrier or its agents, be entitled to the full, fair, and clear
disclosure of all the terms and conditions of the contract of carriage about to be purchased. The disclosure
shall include, among others, documents required to be presented at check-in, provisions on check-in
deadlines, refund and rebooking policies, and procedures and responsibility for delayed and/or cancelled
flights. These terms and conditions may include liability limitations, claim-filing deadlines, and other
crucial conditions.
4.1 An air carrier shall cause the disclosure under this Section to be printed on or attached to the
passenger ticket and/or boarding pass, or the incorporation of such terms and conditions of carriage by
reference. Incorporation by reference means that the ticket and/or boarding pass shall clearly state that
the complete terms and conditions of carriage are available for perusal and/or review on the air carrier's
website, or in some other document that may be sent to or delivered by post or electronic mail to the
passenger upon his/her request.
....

4.3 Aside from the printing and/or publication of the above disclosures, the same shall likewise be
verbally explained to the passenger by the air carrier and/or its agent/s in English and Filipino, or in a
language that is easily understood by the purchaser, placing emphasis on the limitations and/or
restrictions attached to the ticket.
.....

4.5 Any violation of the afore-stated provisions shall be a ground for the denial of subsequent applications
for approval of promotional fare, or for the suspension or recall of the approval made on the advertised
fare/rate. (Emphasis in the original)

The Air Passenger Bill of Rights recognizes that a contract of carriage is a contract of adhesion, and thus,
all conditions and restrictions must be fully explained to the passenger before the purchase of the ticket:

WHEREAS, 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;[132]

Section 4.4 of the Air Passenger Bill of Rights requires that "all rebooking, refunding, baggage allowance
and check-in policies" must be stated in the tickets:

4.4 The key terms of a contract of carriage, which should include, among others, the rebooking, refunding,
baggage allowance and check-in policies, must be provided to a passenger and shall substantially be stated
in the following manner and, if done in print, must be in bold letters:
(English)

"NOTICE:

The ticket that you are purchasing is subject to the following conditions/restrictions:

1. _______________
2. _______________
3. _______________

Your purchase of this ticket becomes a binding contract on your part to follow the terms
and conditions of the ticket and of the flight. Depending on the fare rules applicable to your
ticket, non-use of the same may result in forfeiture of the fare or may subject you to the
payment of penalties and additional charges if you wish to change or cancel your booking.

For more choices and/or control in your flight plans, please consider other fare types."

(Filipino)

"PAALALA:
Ang tiket na ito ay binibili ninyo nang may mga kondisyon/ restriksyon:

1. _______________
2. _______________
3. _______________

Sa pagpili at pagbili ng tiket na ito, kayo ay sumasang-ayon sa mga kondisyon at

restriksyon na nakalakip dito, bilang kontrata ninyo sa air carrier. Depende sa patakarang
angkop sa iyong tiket, ang hindi paggamit nito ay maaaring magresulta sa pagwawalang
bisa sa inyong tiket o sa paniningil ng karagdagang bayad kung nais ninyong baguhin o
kanselahin ang inyong tiket.

Para sa mas maraming pagpipilian at malawak na control sa inyong flight, inaanyayahan

kayong bumili ng iba pang klase ng tiket galing sa air carrier." (Emphasis in the original)

The Air Passenger Bill of Rights acknowledges 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[.]"[133] Thus, the airline is
mandated to place in writing all the conditions it will impose on the passenger.

However, the duty of an airline to disclose all the necessary information in the contract of carriage does
not remove the correlative obligation of the passenger to exercise ordinary diligence in the conduct of his
or her affairs. The passenger is still expected to read through the flight information in the contract of
carriage before making his or her purchase. If he or she fails to exercise the ordinary diligence expected of
passengers, any resulting damage should be borne by the passenger.

WHEREFORE, the Petition is DENIED.

SO ORDERED.