Airline passengers bumped off flights due to the practice of
overbooking by carriers will now receive higher compensation for their
trouble, the Civil Aeronautics Board (CAB) has ordered.
Amid increasing passenger complaints about budget carriers bumping
off passengers arbitrarily, the CAB on Monday published Economic
Regulation No. 7 defining the rights of ticket holders.
The main provision covers an increase in compensation for passengers
who, through no fault of their own, are denied boarding a flight.
“Carriers shall pay passengers holding confirmed reserved space—who
had presented themselves for carriage at the proper time and place and
fully complied with the carrier’s check-in and reconfirmation
procedures—but who had been denied boarding for lack of space,” the new
rule says.
Passengers on domestic flights will be entitled to a full refund of
their ticket plus compensation of P3,000, up from the previous
compensation rate of P150 that was set in the 1970s.
International passengers that are bumped off would also get a refund and compensation of P5,000, up from the previous P500.
“If accepted by the passenger, the compensation shall constitute
liquidated damages for all damages incurred by the passenger as a result
of the carriers’ failure to provide the passenger with confirmed
reserved space,” the CAB said.
The new rule also states that before an airline can bump off a
passenger due to lack of space, the company should first ask for
volunteers to give up their seats. Airlines should give those who
volunteer priority boarding on the next available flight.
The CAB said that in cases where the number of volunteers is not
enough, passengers who would still be bumped off should be compensated
based on the above rates.
The new CAB rule also says that passengers who are bumped off should
be provided with refreshments or meals and hotel accommodations if the
next flight leaves the next day, as well as transportation to and from
the airport, free communications such as phone calls or Internet access
and first aid, if necessary.
Passengers affected by flight delays of more than two hours that are
an airline’s fault are also entitled to the same benefits. A passenger
that opts out of his or her flight due to protracted delays should be
given a full refund, the CAB said.
The airlines’ rights are protected by the new rule as well.
The CAB said airlines would be exempt from liability if trip delays
are caused by safety and security reasons, “acts of God,” weather, labor
strikes and other reasons beyond a company’s control.
The airlines are also absolved if it is the passenger’s fault that he missed his flight.