The Department of Trade and Industry (DTI) wants more protection for consumers under the proposed guidelines on delayed and cancelled flights of airlines, Undersecretary Zenaida Maglaya said.
The DTI has submitted its comments on the second draft of Economic Ordinance 7 entitled “Boarding Priority and Compensation for Denied Boarding, Delayed and Cancelled Flights” to be issued by the Civil Aeronautics Board (CAB).
Maglaya said the DTI wants passengers to be fully compensated in case flights are cancelled because of force majeure.
Maglaya said the DTI believes that if it is the airline’s fault that the flight is cancelled, the passenger can opt to have his ticket refunded or rebook his flight at no extra charge.
Rebooking should not cost more than what the passenger paid for in the case of tickets bought on promotional sales, Maglaya added.
At the same time, the DTI is asking airlines for full disclosure on the final or end price of a ticket bought on promo.
Maglaya said the CAB should compel carriers to list in detail other charges in their promo announcements, including the tax, fuel surcharge and airport security fee, as is being practised in the United States.
Maglaya said in the Philippines, only Philippine Airlines implements this for its international flights.
The proposed EO provides that in case of cancellation for causes attributable to the carrier, the air carrier shall provide its passengers refreshments or meals; hotel accommodation; transportation from the airport to the hotel and vice versa in cases of immediately rebooked flights; free phone calls or e-mails; and first aid, if necessary.
In case of delay of more than an hour, the air carrier shall provide refreshments or meals; free phone calls or e-mails; and first aid, if necessary.
The draft EO said if the flight is deferred until the next day, the air carrier shall provide refreshments or meals and hotel accommodation, and if a passenger opts not to fly the remaining sector, a reimbursement of the cost of the remaining sector not flown.
Under Section 7 of the proposed EO, passengers with confirmed seats who have been denied boarding for lack of space even if they presented themselves at the proper time and place, fully complied with the carrier’s check-in and reconfirmation procedures, and were acceptable for carriage under the carrier’s tariff, shall be compensated by carriers at the rate of 100 percent of the value of the sector not flown plus P3,000 for domestic flights, and 100 percent plus P5,000 or its equivalent in other currency for international flights.
Section 5 of the EO lists the procedures for denial of boarding.
The ordinance said if a carrier intends to deny a passenger or passengers from boarding, it shall first call the attention of passengers who would like to voluntarily surrender their confirmed reserved spaces in favor of other passengers.
In cases where the number of passengers who volunteer to give up their seats is insufficient or where there are no volunteers, the carrier may then deny passengers from boarding in accordance with Chapter II, and in which case it must compensate the passenger/s who is/are denied boarding.
Passengers who surrendered their confirmed reserved space should be offered by the air carrier benefits in exchange for the same.
In the event of cancellation, the carrier shall provide passengers with the written or published statement of the cause of the same.
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By: Irma Isip
Source: Malaya Business Insight, May 9, 2012
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