This is a re-posted article.

Air industry regulators have toned down rules to improve passenger service after local carriers protested these were discriminatory and added costs besides, an official said yesterday.

"In its regular board meeting on June 13 and after hearing airline companies’ arguments, the CAB (Civil Aeronautics Board) resolved to refine the provisions of Resolution Nos. 28 and 29 in the interest of balancing passenger rights and the concerns of the airlines," Eldric Paul A. Peredo, CAB’s acting board secretary, said via e-mail.

Those rules, which were to have taken effect today, banned local carriers from overbooking flights (Resolution No. 28) as well as no-refund and no-rebooking conditions for budget flights (Resolution No. 29).

AirAsia Philippines, Cebu Pacific and Zest Airways last week filed separate appeals, arguing the rules were discriminatory since they covered only local carriers and would drive up manpower cost.

Under the June 13 resolution, airlines will be allowed to overbook up to 5% of flight capacity from the previous industry practice of 10%.

"Overbooking will still be discouraged, and will be strictly and closely monitored," Mr. Peredo said. "While the practice is that airlines overbook by at most 10% of capacity, the CAB target is to have overbooking at half that percentage, even when the rate of no-shows is relatively high."

He added that carriers will also have to meet "stringent reportorial requirement."

In the same e-mail, Mr. Peredo said passengers should also rebook flights or ask for refunds a day before their scheduled flights at the latest. "The CAB… looks to provide a 24-hour cutoff before the estimated time of departure, so that a passenger wanting to change his flight plan…or does not show up at all may still have the option to rebook, subject to reasonable administrative, rebooking and non-user costs," he said.

CAB Executive Director Carmelo A. Arcilla said via text the latest resolution will take effect "upon service to the airlines, either tomorrow (today) or Monday."

Officials of Cebu Pacific, Zest Air and AirAsia Philippines declined to comment until they get a copy of the resolution.

Mr. Peredo described current rules as "interim measures", pending a passenger bill of rights the Transportation department hopes to finalize next quarter.

In another resolution last month, CAB raised compensation due passengers bumped off because of overbooking for both domestic and international flights.

By: C. H. C. Venzon
Source: BusinessWorld, 15 June 2012
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