Air Transportation Reviewer
Air Transportation Reviewer
Air Transportation Reviewer
an aircraft is a Philippine National if the same is registered with the Civil Aviation
Authority of the Philippines.
The registry of aircraft and any transfer, lien, mortgage or other interests in aircraft or
aircraft engines is maintained by the CAAP.
All conveyances made or executed, which affects the title to, or interest in, any aircraft of
Philippine registry, or any portion thereof shall be registered with the CAAP.
The validity of the registration of voluntary dealings is subject to the following rules:
1. The registration is valid only with respect to the parties and their heirs, assignees,
executors, administrators, devisees, or successors in interest, and any person
having actual notice thereof.
2. The registration is valid as against all persons and any instrument, recording of
which is required shall take effect from the date of its record in the books of the
Authority, and not from the date of its execution.
Under Section 52 of the Property Registration Decree25 the owner may use such forms of
deeds, mortgages, leases or other voluntary instruments as are sufficient in law. The
owner’s duplicate of the certificate of registration must be presented before registration is
effected.
MARINE INSURANCE
Falls under the Insurance Code includes Air Hull Policies which may vary depending on
the type of aircraft.
“Domestic air commerce” includes air commerce within the limits of the Philippine
territory.
“Domestic air transport” means air transportation within the limits of the Philippine
territory.
“Foreign air transport” refers to air transportation between the Philippines and any
place outside it or wholly outside the Philippines.
CIVIL AERONAUTICS BOARD (CAB) – regulates persons and entities that are
involved in the economic aspects of air transportation. Examples are:
1. Airline companies
2. General Sales Agents – a person, who, pursuant to an authority from an airline, by
itself or through an agent, sells or offers for sale any air transportation or
negotiates for or holds himself by
solicitation, advertisement, or otherwise as one who sells, provides,
furnishes, contracts or arranges for, such air transportation.
3. Cargo Sales Agents - any person who does not directly operate an aircraft for the
purpose of engaging in air transportation or air commerce and who, as principal or
agent, sells, or offers for sale any air transportation of cargo, or negotiates for, or
holds himself out by solicitation, advertisement or otherwise as one who provides,
sells, furnishes, contracts or arranges for, such air transportation of cargo.
4. Charterers / Charter Flight or Charter Trip – Regulated by CAB. Air
transportation performed by an air carrier where the entire capacity of one or
more aircraft, or less than the entire capacity of an aircraft, has been engaged
for the movement of persons and their personnel baggage or for the movement of
property on a time, mileage or trip basis.
a. By a person for his own use (including a direct air carrier
when such aircraft is engaged solely for the transportation of company
personnel or commercial traffic in cases of emergency)
b. By a representative (or representative acting jointly) of a
group for the use of such group (provided no such representative is
professionally engaged in the formation of groups for transportation or in
the solicitation or sale of transportation services)
c. By an airfreight forwarded holding a currently effective permit
5. Air Freight Forwarders – any indirect air carrier which, in the ordinary and usual
course of its undertaking, assembles and consolidates or provides for assembling
and consolidating such property and performs or provides for the performance of
break-bulking and distributing operations with respect to consolidated shipments,
and is responsible for the transportation of property from the point of receipt to the
point of destination and utilizes for the whole or any part of such transportation the
services of a direct air-carrier.
6. Off-Line Carriers – any foreign air carrier not certificated
by the Board, but who maintains office or who has designated or appointed agents
or employees in the Philippines, who sells or offers for sale any air transportation
in behalf of said foreign air carrier and/or other, or negotiate for, or holds itself out
by solicitation, advertisement, or otherwise sells, provides, furnishes, contracts, or
arranges for such transportation.
7. Air Taxi Operators – an air carrier utilizing small aircraft
for charter trip and/or individual service transportation within the territory of the
Republic of the Philippines with proper certification and permit from the CAB.
Chicago Convention - 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.”
Consent is necessary for other States to operate within the territory of another.
The so-called Sixth Freedom of the Air, unlike the first five freedoms, is not incorporated
as such into any widely recognized air service agreements such as the “Five Freedoms
Agreement.”
Each contracting State agreed to grant to the other contracting states, five “freedoms of
air.”
The privilege to put down passengers, mail and cargo taken on in the territory of
the State whose nationality the aircraft possesses - Third Freedom
The privilege to take on passengers, mail or cargo destined for the
territory of the State whose nationality the aircraft possesses - Fourth
Freedom
The government through the Civil Aeronautics Board (CAB) has the indispensable
authority to compel local air carriers to comply with government determined policies,
even at the expense of economic rights.
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.
Section 10 of R.A. 776 grants to the CAB the “general supervision and
regulation of, and jurisdiction and control over, air carriers as well as their
property, property rights, equipment, facilities and franchise,”
Stand Alone Cabotage which is the right or privilege of transporting cabotage traffic of
the granting State on a service performed entirely within the territory of the granting
State.
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
Aircrafts must also be fit to transport goods and passengers.
Aircraft must be in such a condition that it must be able to withstand the
rigors of the flight
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
A contract of adhesion, wherein one party imposes a ready-made form of contract on the
other, is not strictly against the law. A contract of adhesion is as binding as ordinary
contracts, the reason being that the party who adheres to the contract is free to reject it
entirely. Contrary to petitioner’s contention, not every contract of adhesion is an invalid
agreement.
CARE OF BAGGAGE.
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.
(1) The baggages of their passengers were either damaged or their contents
were lost or stolen;
(2) The baggage were 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;
(5) If the baggage is lost altogether.
DUTY TO PASSENGER.
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.
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.
Passengers in a contract of carriage do not contract merely
for transportation, they have a right to be treated with kindness, respect, courtesy and
consideration.
“[f]ailure, without legal excuse, to perform any promise which forms the whole or
part of the contract.”
(1) Inattention to and lack of care for the interest of the passenger and inordinate delay
in addressing complaints or claims;
(5) Forcibly ejecting a passenger from a seat and transferring him to another;
(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.
There was improper monitoring by flight attendants of overhead luggage racks resulting
in a suitcase falling on a passenger’s head.
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.”
Japan Airlines v. Court of Appeals – Flight of the passenger to Manila was cancelled
because of the eruption of Mt. Pinatubo while on a stopover in Narita Airport in Japan.
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.
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. 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.”
Rude Treatment.
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.
Over-booking.
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 last-minute 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.”
Savel-lano v. Northwest Airlines – 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. Failing in
this, it cannot just unilaterally shuttle them, without their consent, to other routes or
stopping places outside of the contracted sectors. 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.”
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.
(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.
Air carrier will not be liable if the passenger failed to present
himself on time in the airport counter, the burden of proving that the passenger is a
“no-show” passenger rests with carrier.
Applicable rule – Economic Regulation No. 7 (as Amended) dated May 14, 2012 of
the Civil Aeronautics Board which provides for rules on “Boarding Priority and
Compensation for Denied Boarding, Delayed and Cancelled Flights” when the
denial is due to honest mistakes.
United Airlines, Inc. v. Court of Appeals – Existing jurisprudence explicitly states that
overbooking amounts to bad faith – entitling passengers concerned to an award of moral
damages.
Alitalia Airways v. Court of Appeals – 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.
Economic Regulations No. 7, as amended, 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.
Applicability.
Economic Regulation No. 7 shall apply to every Philippine and foreign air carrier with
respect to the following:
Honest Mistakes.
Economic Regulation is designed to cover only honest mistakes on the part of carriers
and excludes deliberate and wilful acts of non-accommodation.
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.
Overbooking.
Overbooking not exceeding 10% of the seating capacity of the aircraft shall not be
considered as a deliberate and wilful act of non-accommodation. this provision no longer
appears in Section 3 of Economic Regulation No. 7. Nevertheless, 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.
Priority Rules.
1. Willful Misconduct
2. Gross negligence
3. Absence of baggage check
4. If there was waiver in the part of the carrier
5. Estoppel – When the carrier is estopped from invoking the provision of limit of liability
Venue of Action
1. Domicile of carrier
2. Principal place of business of carrier
3. Where the carrier has an establishment which has been made
4. The court of the place of destination
Must complain the carrier or else it is a prima facie evidence that the same has been received in
good condition.
Period to file
3 days baggage
14 days in case of delay counted from the time the baggage was placed at the disposal of the
passenger
Prescription – 2 years reckoned from the date of arrival at the destination (Art 29 WC) or from
the date on which the aircraft ought to have arrived, or from the date on which the carrier
stopped.
The method of calculating the period of limitation shall be ddetermined by the law of the Court
seized of the case.
The WC provides the basic contents of Passenger ticket, baggage check and airway bill and non-
compliance therewith may result in the non-application of the limit of applicability.