Airlines told to stop overbooking of flights

MANILA, Philippines - The Civil Aeronautics Board (CAB) has ordered local airlines to stop overbooking on their domestic flights.

The CAB issued the directive amid the “prevailing public outrage” over local airlines’ delayed and cancelled flights as well as passengers’ complaints over denied boarding or being bumped off from flights due to overbooking.

The CAB said there is a need to “re-examine the propriety of overbooking as a revenue-management option practiced by airlines in the domestic sector vis-a-vis their obligation under their Certificate of Public Conveyance and Necessity to provide services that are efficient and conducive to the convenience of passengers.”

In Resolution 28, issued last May 4, the CAB said the suspension of airlines’ overbooking option will be in effect “until further notice or conditions are such as to assure the board that the practice is not inherently inimical to public interest.”

The resolution laid down the compensation and other obligations of airlines to passengers denied boarding or bumped off from a flight and those whose flights were delayed or cancelled.

Under amended CAB Economic Regulation 7 approved by the board last May 14, airlines have to give passengers of delayed and cancelled flights refreshments or meals, whether breakfast, lunch or dinner as the case may be; hotel accommodation that is conveniently accessible from the airport; transportation from airport to hotel; first aid medicine if necessary; and free communication such as phone calls, text and emails.

The amended ER 7, titled Economic Regulations on Boarding Priority and Compensation for Denied Boarding, Delayed and Cancelled Flights, also laid down the compensation due passengers denied boarding. Both local and foreign airlines should compensate passengers denied boarding due to lack of space or seats P3,000 for domestic flights and P5,000 for international flights and reimburse them the full value of their ticket.

Airlines usually bump off passengers when they have oversold tickets for a given flight. 

Airlines also offload passengers when the aircraft suffer mechanical problems and have to be replaced with a unit with lesser seat capacity.

The compensation covers passengers who got their ticket under promo fares.

Carriers shall be exempt from liability when the flight was cancelled or delayed due to “operational, safety and/or security reasons, force majeure, weather, strikes or other causes beyond the control of the air carrier,” ER 7 added.

The regulation also set exemptions on compensation for passengers denied boarding, saying airlines are not liable to provide compensation on cases of government requisition of the space or seat or if there is a need for a substitution of equipment “of lesser capacity when required by operational safety and/or security reasons and other causes beyond the control of the carrier.” 

Transportation Secretary Manuel Roxas II earlier asked the CAB to look into passenger complaints over delayed and cancelled flights as well as lost or misrouted baggage.

Roxas instructed CAB executive director Carmelo Arcilla to come up with a Passenger’s Bill of Rights that will lay down the basic rights of airline passengers for both local and international flights. 

He said the Department of Transportation and Communications will coordinate with the Department of Trade and Industry (DTI) as well as the country’s leading local airlines to gather and address airline passengers’ complaints.

Roxas designated Undersecretary for Operations Rafael Santos to head a technical working group to undertake the project.