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MANILA – Two days before they were supposed to have taken effect, the Civil Aeronautics Board jettisoned two new rules meant to protect passengers from unfair airline industry practices.
"In view of the fact that the Board and the Department of Trade and Industry are in the process of conducting public hearings on the Passenger Bill of Rights and the approval of the Passenger Bill of Rights will affect Resolutions Numbers 28 and 29 which could in turn create confusion for the riding public, the effectivity of Resolution Nos. 28 and 29 is hereby deferred until such time that the Passenger Bill of Righs shall have been subjected to public hearings and approved," read CAB Resolution No. 44, which was issued on Wednesday.
Approved on June 13, Resolution 44 took effect immediately, or two days before Resolutions 28 and 29 would have taken hold.
Resolution 28 would prohibit overbooking, while Resolution 29 would require refunds and rebooking of flights.
Both rules would have addressed consumer complaints against bump-offs and flight delays caused by overbooking, as well as low-cost carriers’ promo airfares, which are non-rebookable and non-refundable.
"Both resolutions were interim measures undertaken by the Board to address the seemingly prevalent complaints in airports and as received by the Board. These complaints are about an apparent abuse by airlines of the option to overbook, and the imposition of non-refundability and non-rebookability conditions on certain fare types," the new resolution read.
Data from CAB showed that consumers filed 81 complaints last year, higher than the 77 in 2010. In the first quarter of this year, the regulator received 21 complaints.
Of the total number of complaints, 45 percent pertained to demands for a refund; 14 percent, unfair practices/negligence of personnel; 10 percent, cancelled flights; seven percent, delayed flights, denied boarding or lost luggage; and three percent, misleading advertisement.
Cebu Pacific, Zest Airways, Southeast Asian Airlines and Philippines Air Asia raised a howl over Resolutions 28 and 29, claiming these rules would upset the business model of LCCs.
They warned that the new rules would push up ticket prices, thus eroding industry growth as well as the government’s tourism targets.
Instead of implementing Resolutions 28 and 29, the carriers said CAB should await a Passenger Bill of Rights that the Department of Transportation and Communications is pushing.
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