"When Aircraft Operator is Common Carrier. ­­ There can be no doubt, under the general law of common carriers, that those airlines and aircraft owner engaged in the passenger service on regular schedules on definite routes, who solicit the patronage of the traveling public, advertise schedules for routes, times of leaving, and rates of fare, and make the usual stipulation as to baggage, are common carriers by air. A flying service company which, according to its printed advertising, will take anyone anywhere at any time, though not operating on regular routes or schedules, and basing the charges not on the number of passengers, but on the operating cost of the plane per mile, has been held to be a common carrier. It is not necessary, in order to make one carrying passengers by aircraft a common carrier of passengers that the passengers be carried from one point to another, the status and the liability as a common carrier may exist notwithstanding the passenger's ticket issued by an airplane carrier of passengers for hire contains a statement that it is not a common carrier, etc., or a stipulation that it is to be held only for its proven negligence. But an airplane owner cannot be classed as a common carrier of passengers unless he undertakes, for hire, to carry all persons who apply for passage indiscriminately as long as there is room and no legal excuse for refusing..." 6 Am. Jur., Aviation, Sec. 68, pp. 36­85.

"The test of whether one is a common carrier by air is whether he holds out that he will carry for hire, so long as he has room, goods of everyone bringing goods to him for carriage, not whether he is carrying as a public employment or whether he carries as a fixed place." (Ibid., Sec. 39, p. 99.)

THE AIRCRAFT AND CIVIL AVIATION

I. APPLICABLE LAWS. The New Civil Code provisions on Common Carriers apply to

transportation by air.

a. Civil aviation is governed by Republic Act No.9497 otherwise known as the Civil Aviation Authority Act of 2008 which was passed on March 4, 2008.

b. The economic regulation of air transportation is governed by Republic Act No. 776 and the regulations issued by the Civil Aeronautics Board pursuant thereto.

c. Treaties and conventions likewise have the effect of law in this jurisdiction. Thus, the Warsaw Convention applies to liabilities of the carriers in international transportation by air. Another international convention applied in this jurisdiction is the Chicago Convention which was signed on December 7, 1944.

1 || AVIATION LAW

II. CIVIL AVIATION. "Civil Aviation" refers to the operation of any civil aircraft for the purpose of general aviation operations, aerial work or commercial air transport operations. "Aircraft", on the other hand, refers to any machine that can derive support in the atmosphere from the reactions of the air other than the reactions of the air against the earth's surface. The term "aircraft", when used in Civil Aviation Act of 2008 or in regulations issued under the same Act, shall refer to civil aircraft only, and will not include State or public aircraft.

III. REGISTRATION OF AIRCRAFT. "Philippine aircraft" means an aircraft registered in the Philippines in accordance with the requirements of the Civil Aviation Authority Act of 2008. This is consistent with Article 17 Chapter III of the Chicago Convention which provides that "aircraft have the nationality of the State in which they are registered." The Chicago Convention likewise provides that every aircraft engaged in international air navigation shall bear its appropriate nationality and registration marks.

a. The Chicago Convention provides that "an aircraft cannot be validly registered in more than one State, but its registration may be changed from one State to another."

b. Aircraft registration is made in accordance with the provisions in Sections 43­48 and 54 of the Civil Aviation Authority Act of 2008.

c. The State of Registry refers to the State on whose register the aircraft is entered. Hence, an aircraft is a Philippine National if the same is registered with the Civil Aviation Authority of the Philippines. The Certificate of Registration issued by the Civil Aviation Authority of the Philippines shall be deemed conclusive evidence of nationality for international purposes. The Certificate of Registration shall be carried aboard the aircraft in all its operations.

d. The registry of aircraft and any transfer, lien, mortgage or other interests in aircraft or aircraft engines is maintained by the CAAP. The CAAP is given sole authority to register aircraft and liens, mortgages or other interests in aircraft or aircraft engines.

e. An aircraft shall be eligible for registration if the following requirements are present:

1. The aircraft it is owned by or leased to a citizen or citizens of the Philippines or corporations or associations organized under the laws of the Philippines at least sixty per centum (60%) of whose capital is owned by Filipino citizens; and

2 || AVIATION LAW

2. The aircraft is not registered under the laws of any foreign country.

f. Exceptionally, foreign­owned or registered aircraft may be registered if utilized by members of aero clubs organized for recreation, sport or the development of flying skills as a prerequisite to any aeronautical activities of such clubs within the Philippine airspace.

g. No aircraft can be operated in the Philippines unless it displays nationality and registration marks. Permanent marking of aircraft nationality and registration shall be painted on the aircraft or affixed by other means ensuring a similar degree of permanence. The nationality mark for Philippine registered aircraft is "RP."

h. The certificate of registration is conclusive evidence of ownership, except in a proceeding where such ownership is, or may be, at issue.

IV. RECORDING OF CONVEYANCES. All conveyances made or executed, which affects the title to, or interest in, any aircraft of Philippine Registry, or any portion thereof shall be registered with the CAAP. The pertinent provisions of the Civil Aviation Authority Act of 2008 regarding recording of conveyances are found in Sections 49­53.

a. The validity of the registration of voluntary dealings concerning aircrafts with the CAAP is subject to the following rules:

1. The registration is valid only with respect to the parties and their heirs, assignees, executors, administrators, devisees, or successors in interest, and any person having actual notion thereof.

2. The registration is valid as against all persons and any instrument, recording of which is required shall take effect from the date of its record in the books of the Authority, and not from the date of its execution.

b. The requirements are similar to the requirements in land registration. It should be noted that under Section 52 of the Property Registration Decree the owner may use such forms of deeds, mortgages, leases or other voluntary instruments as are sufficient in law. The owner's duplicate of the certificate of registration must be presented before registration is effected.

V. MARINE INSURANCE. Insurance over aircrafts falls within the coverage of Marine

3 || AVIATION LAW

Insurance under the Insurance Code. These include Air Hull Policies which may vary depending on the type of aircraft.

VI. AIR TRANSPORTATION IN GENERAL. Air commerce or commercial air transport operations refers to and includes scheduled or non­scheduled air transport services for pay or hire, the navigation of aircraft in furtherance of a business, the navigation of aircraft from one place to another for operation in the conduct of a business, or an aircraft operation involving the transport of passengers, cargo or mail for remuneration or hire.

a. "Domestic air commerce" means and includes air commerce within the limits of the Philippine territory.

b. "Domestic air transport" means air transportation within the limits of Philippine territory.

c. "Foreign air transport" refers to air transportation between the Philippines and any place outside it or wholly outside the Philippines.

d. "International commercial air transport" refers to the carriage by aircraft of persons or property for remuneration or hire or the carriage of mail between any two or more countries.

VII. PERSONS INVOLVED IN AIR TRANSPORTATION. Persons and entities involved in air transportation that are regulated by the Civil Aviation Authority of the Philippines principally include the air carrier or operator. Air operators may either be a Philippine Air Carrier or a Foreign Air Carrier.

a. "Air carrier or operator" refers to a person who undertakes, whether directly or indirectly, or by a lease or any other arrangements, to engage in air transportation services or air commerce.

b. "Philippine air carrier" means an air carrier who is a citizen of the Philippines.

c. "Foreign air carrier or foreign air operator" means any operator, not being a Philippine air operator, which undertakes,whether directly or indirectly or by lease or any other arrangement, to engage in commercial air transport operations within borders or airspace of the Philippines, whether on a scheduled or chartered basis.

d. "Airmen" refers to any individual who engages, as the person in command or as pilot, mechanic, aeronautical engineer, flight radio operator or member of the crew,

4 || AVIATION LAW

in the navigation of aircraft while under way and any individual who is directly in charge of inspection, maintenance, overhauling or repair of aircraft, aircraft engine, propellers, or appliances and individual who serves in the capacity of aircraft dispatcher or air traffic control operator.

The CAB regulates persons and entities that are involved in the economic aspects of air transportations. These include not only airline companies but also such entities as General Sales Agents, Cargo Sales Agents, Charterers, Air Freight Forwarders, Off­Line Carriers, and Air Taxi Operators.

VIII. CHARTER OF AIRCRAFT. Charter trips are likewise regulated by the CAB. Charter flight or charter trip means air transportation performed by an air carrier where the entire capacity if one or more aircraft, or less than the entire capacity of an aircraft, has been engaged for the movement of persons and their personnel baggage or fort the movement of property on a time, mileage or trip basis:

a. By a person for his own use (including a direct air carrier when such aircraft is engaged solely for the transportation of company personnel or commercial traffic in cases of emergency);

b. By a representative (or representative acting jointly) of a group for the use of such group (provided no such representative is professionally engaged in the formation of groups for transportation or in the solicitation or sale of transportation services); or

c. By an airfreight forwarded holding a currently effective permit.

IX. SOVEREIGNTY AND AIR FREEDOMS. The fundamental principle stated in the Chicago Convention is with respect to the sovereignty of the contracting States. Article 1 of Chapter I thereof provides that "the contracting States recognize that every State has complete and exclusive sovereignty over the airspace above its territory." Hence, consent is necessary for other States to operate within the territory of another.

The bilateral system of air traffic negotiations is in force under the Chicago Convention. Before airlines of treaty partners are able to launch air services to, through and from another partner's territory, the convention requires that the two governments shall have negotiated a bilateral treaty between them that will define the air traffic rights each grants to the other during the life of the treaty. The resulting agreement is known as the Air Services Agreement.

5 || AVIATION LAW

OBLIGATIONS OF CARRIER IN AIR TRANSPORTATION

I. EXTRAORDINARY DILIGENCE IN AIR TRANSPORTATION.

I.A. AIRWORTHINESS. Airworthiness is an important requirement of transportation by air. Like vessels, aircrafts that are used by common carriers must also be fit to transport goods and passengers. The aircraft must be in such a condition that it must be able to withstand the rigors of the flight.

Under Section 3 of the Civil Aeronautics Act of 2008, “airworthiness” means that an aircraft, its engines, propellers, and other components and accessories, are of proper design and construction, and are safe for air navigation purposes, such design and construction being consistent with accepted engineering practice and in accordance with aerodynamic laws and aircraft science. The registered owner or operator of an aircraft in an airworthy condition, including compliance with all airworthiness directives in accordance with Civil Aviation Regulation.

I.B. INSPECTION OF AIRCRAFT AND CARGO. The Director General of the Civil Aviation Authority of the Philippines (CAAP) is authorized to have access to all civil aircraft for their inspection. The Director General is also authorized to detain civil aircraft if:

a. The aircraft may not be airworthy; or

b. The airman may not be qualified or physically or mentally capable for the flight; or

c. The operation would cause imminent danger to persons or property on the ground.

The duty to inspect cargo is mandated under Republic Act No. 6325 which prohibits acts inimical to civil aviation.

Section 8. Aircraft companies which operate as public utilities or operators of aircraft which are for hire are authorized to open and investigate suspicious packages and cargoes in the presence of the owner or shipper, or his authorized representatives if present; in order to help the authorities in the enforcement of the provisions of this Act: Provided, That if the owner, shipper or his representative refuses to have the same opened and inspected, the airline or air carrier is

6 || AVIATION LAW

authorized to refuse the loading thereof.

Section 9. Every ticket issued to a passenger by the airline or air carrier concerned shall contain among others the following condition printed thereon: "Holder hereof and his hand­carried luggage(s) are subject to search for, and seizure of, prohibited materials or substances. Holder refusing to be searched shall not be allowed to board the aircraft," which shall constitute a part of the contract between the passenger and the air carrier.

I.C. CARE OF BAGGAGE. With respect to goods, the failure of the the carriers to exercise due diligence in a number of cases consists in their failure to take care of the baggage of the carrier's passengers. In the cases where the carriers are made liable, the baggages of their passengers are either damaged or transported to another place, or are delayed or are otherwise lost altogether.

Art. 1733 of the Civil Code provides that from the very nature of their business and by reasons of public policy, common carriers are bound to observe extraordinary diligence in the vigilance over the goods transported by them. This extraordinary responsibility, according to Art. 1736, lasts from the time the goods are unconditionally placed in the possession of and received by the carrier until they are delivered actually or constructively to the consignee or person who has the right to receive them. Art.1737 states that common carriers duty to observe extraordinary diligence in the vigilance over the goods transported by them remains in full force and effect when they are temporarily unloaded or stored in transit. And Art. 1735 establishes the presumption that if the goods are lost, destroyed, or deteriorated, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they had observed extraordinary diligence as required in Art. 1733.

The only exception to the foregoing responsibility of the common carrier is when the loss, destruction, or deterioration of the goods us due to any of the following causes: Flood, storm, earthquake, lightning, or other natural disaster or calamity; Act of the public enemy in war, whether international or civil; Act or omission of the shipper or owner of the goods; The character of the goods or defects in the packing or in the containers; or Order or act of competent public authority.

7 || AVIATION LAW

II.C.A. ADDITIONAL PROVISIONS. The Joint DOTC­DTI Administrative Order No. 1 Series of 2012 provides a Bill of Rights for Air Passengers and Carrier Obligations.

Section 14. Right to Compensation for Delayed, Lost, and Damaged Baggage. A passenger shall have the right to have his/her baggage carried on the same flight that such passenger takes, subject to considerations of safety, security, or any other legal and valid cause.

14.1 In case a checked­in baggage has been off­loaded for operational, safety, or security reasons, the air carrier shall inform the passenger at the soonest practicable time and in such manner that the passenger will readily know of the off­loading (i.e. that his/her baggage has been off­loaded and the reason therefore). If the passenger’s baggage has been off­loaded, the air carrier should make the appropriate report and give the passenger a copy thereof, even if it had already announced that the baggage would be on the next flight.

The air carrier shall carry the off­loaded baggage in the next flight with available space, and deliver the same to the passenger either personally or at his/her residence. For every twenty­four (24) hours of delay in such delivery, the air carrier shall tender an amount of Two Thousand Pesos (Php2,000.00) to the passenger, as compensation for the inconvenience the latter experienced. A fraction of a day shall be considered as one day for purposes of calculating the compensation.

For the purposes of this section, the twenty four (24)­hour period shall commence one (1) hour from the arrival of the flight of the passenger carrying such baggage.

14.2 Should such baggage, whether carried on the same or a later flight, be lost or suffer any damage attributable to the air carrier, the passenger shall be compensated in the following manner:

(a) For international flights, the relevant convention shall apply.

(b) For domestic flights, upon proof, a maximum amount equivalent to half of the amount in the relevant convention (for international flights) in its Peso equivalent.

14.3 For compensation purposes, a passenger’s baggage is presumed to have been permanently and totally lost, if within a period of seven (7) days, counted from the time the passenger or consignee should have received the same, the baggage is not delivered to said passenger or consignee.

The Warsaw Convention further supplies provisions concerning international

8 || AVIATION LAW

transportation of baggage or goods performed by an aircraft gratuitously or for hire. These are provided in Sections Two and Three of said convention

Section II ­ Luggage Ticket

Article 4

1. For the carriage of luggage, other than small personal objects of which the passenger takes charge himself, the carrier must deliver a luggage ticket.

2. The luggage ticket shall be made out in duplicate, one part for the passenger and the other part for the carrier.

3. The luggage ticket shall contain the following particulars:

a. the place and date of issue;

b. the place of departure and of destination;

c. the name and address of the carrier or carriers;

d. the number of the passenger ticket;

e. a statement that delivery of the luggage will be made to the bearer of the luggage ticket;

f. the number and weight of the packages;

g. the amount of the value declared in accordance with Article 22(2);

h. a statement that the carriage is subject to the rules relating to liability established by this Convention.

4. The absence, irregularity or loss of the luggage ticket does not affect the existence or the validity of the contract of carriage, which shall none the less be subject to the rules of this Convention. Nevertheless, if the carrier accepts luggage without a luggage ticket having been delivered, or if the luggage ticket does not contain the particulars set out at (d), (f) and (h) above, the carrier shall not be entitled to avail himself of those provisions of the Convention which exclude or limit his liability.

9 || AVIATION LAW

Section III ­ Air Consignment Note

Article 5

1. Every carrier of goods has the right to require the consignor to make out and hand over to him a document called an "air consignment note"; every consignor has the right to require the carrier to accept this document.

2. The absence, irregularity or loss of this document does not affect the existence or the validity of the contract of carriage which shall, subject to the provisions of Article 9, be none the less governed by the rules of this Convention.

Article 6

1. The air consignment note shall be made out by the consignor in three original parts and be handed over with the goods.

2. The first part shall be marked "for the carrier," and shall be signed by the consignor. The second part shall be marked "for the consignee"; it shall be signed by the consignor and by the carrier and shall accompany the goods. The third part shall be signed by the carrier and handed by him to the consignor after the goods have been accepted.

3. The carrier shall sign on acceptance of the goods.

4. The signature of the carrier may be stamped; that of the consignor may be printed or stamped.

5. If, at the request of the consignor, the carrier makes out the air consignment note, he shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor.

Article 7

The carrier of goods has the right to require the consignor to make out separate consignment notes when there is more than one package.

Article 8

The air consignment note shall contain the following particulars:

a. the place and date of its execution;b. the place of departure and of destination;

10 || AVIATION LAW

c. the agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercises that right the alteration shall not have the effect of depriving the carriage of its international character;

d. the name and address of the consignor; e. the name and address of the first carrier; f. the name and address of the consignee, if the case so requires; g. the nature of the goods;

h. the number of the packages, the method of packing and the particular marks or numbers upon them;

i. the weight, the quantity and the volume or dimensions of the goods; j. the apparent condition of the goods and of the packing;

k. the freight, if it has been agreed upon, the date and place of payment, and the person who is to pay it;l. if the goods are sent for payment on delivery, the price of the goods, and, if the case so requires, the amount of the expenses incurred;

m. the amount of the value declared in accordance with Article 22 (2); n. the number of parts of the air consignment note;

o. the documents handed to the carrier to accompany the air consignment note;p. the time fixed for the completion of the carriage and a brief note of the route to be followed, if these matters have been agreed upon;q. a statement that the carriage is subject to the rules relating to liability established by this Convention.

Article 9

If the carrier accepts goods without an air consignment note having been made out, or if the air consignment note does not contain all the particulars set out in Article 8(a) to (i) inclusive and (q), the carrier shall not be entitled to avail himself of the provisions of this Convention which exclude or limit his liability.

Article 10

1. The consignor is responsible for the correctness of the particulars and statements relating to the goods which he inserts in the air consignment note.2. The consignor will be liable for all damage suffered by the carrier or any other person by reason of the irregularity, incorrectness or incompleteness of the said particulars and statements.

11 || AVIATION LAW

Article 11

1. The air consignment note is prima facie evidence of the conclusion of the contract, of the receipt of the goods and of the conditions of carriage.

2. The statements in the air consignment note relating to the weight, dimensions and packing of the goods, as well as those relating to the number of packages, are prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the goods do not constitute evidence against the carrier except so far as they both have been, and are stated in the air consignment note to have been, checked by him in the presence of the consignor, or relate to the apparent condition of the goods.

Article 12

1. Subject to his liability to carry out all his obligations under the contract of carriage, the consignor has the right to dispose of the goods by withdrawing them at the aerodrome of departure or destination, or by stopping them in the course of the journey on any landing, or by calling for them to be delivered at the place of destination or in the course of the journey to a person other than the consignee named in the air consignment note, or by requiring them to be returned to the aerodrome of departure. He must not exercise this right of disposition in such a way as to prejudice the carrier or other consignors and he must repay any expenses occasioned by the exercise of this right.

2. If it is impossible to carry out the orders of the consignor the carrier must so inform him forthwith.

3. If the carrier obeys the orders of the consignor for the disposition of the goods without requiring the production of the part of the air consignment note delivered to the latter, he will be liable, without prejudice to his right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the air consignment note.

4. The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with Article 13. Nevertheless, if the consignee declines to accept the consignment note or the goods, or if he cannot be communicated with, the consignor resumes his right of disposition.

Article 13

1. Except in the circumstances set out in the preceding Article, the consignee is

12 || AVIATION LAW

entitled, on arrival of the goods at the place of destination, to require the carrier to hand over to him the air consignment note and to deliver the goods to him, on payment of the charges due and on complying with the conditions of carriage set out in the air consignment note.

2. Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the goods arrive.

3. If the carrier admits the loss of the goods, or if the goods have not arrived at the expiration of seven days after the date on which they ought to have arrived, the consignee is entitled to put into force against the carrier the rights which flow from the contract of carriage.

Article 14

The consignor and the consignee can respectively enforce all the rights given them by Articles 12 and 13, each in his own name, whether he is acting in his own interest or in the interest of another, provided that he carries out the obligations imposed by the contract.

Article 15

1. Articles 12, 13 and 14 do not affect either the relations of the consignor or the consignee with each other or the mutual relations of third parties whose rights are derived either from the consignor or from the consignee.

2. The provisions of Articles 12, 13 and 14 can only be varied by express provision in the air consignment note.

Article 16

1. The consignor must furnish such information and attach to the air consignment note such documents as are necessary to meet the formalities of customs, octroi or police before the goods can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier or his agents.

2. The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents.

13 || AVIATION LAW

II. DUTY TO PASSENGER. Article 1755 of the New Civil Code provides that a common carrier is bound to carry the safely as far as human care ad foresight can provide, using the utmost diligence a very cautious persons, with a due regard for all the circumstances.

Article 17 of the Warsaw Code provides for the liability of the carrier on the safety of passengers, to wit: The carrier shall be liable for damage sustained in the event of the death or wounding of a passenger or any other bodily injury suffered by a passenger, is the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking.

The nature of the air carrier's duty with respect to passengers was explained in this wise (Saludo, Jr. V. Court of Appeals, G.R. No. 95536, March 23, 1992.):

"Airline companies are hereby sternly admonished that it is their duty not only to cursorily instruct but to strictly require their personnel to be more accommodating towards customers, passengers and the general public. After all, common carriers such as airline companies are in the business of rendering public service, which is the primary reason for their enfranchisement and recognition in our law. Because the passengers in a contract of carriage do not contract merely for transportation, they have a right to be treated with kindness, respect courtesy and consideration. A contract to transport passengers is quite different in kind and degree from any other contractual relation, and generates a relations attended with public duty. The operation of common carrier is a business affected with public interest and must be directed to serve the comfort and convenience of passengers. Passengers are human beings with human feelings and emotions; they should not be treated as mere numbers or statistics for revenues.”

II.A. PASSENGER BILL OF RIGHTS. Joint Department of Transportation and Communication and Department of Trade and Industry Administrative Order No. 01 Series of 2012 provides the rights of air passengers and carriers obligations, as follows:

Section 4. Right to Full Fair, and Clear Disclosure of the Service Offered and All the Terms and Conditions of the Contract of Carriage. Every passenger, shall, before purchasing any ticket for a contract of carriage by the air carriage or its agent, be entitled the full, fair and clear disclosure of all the terms and conditions of the contract of carriage about to be purchased. The disclosure shall include, among others, document required to be presented at check­in, provisions on

14 || AVIATION LAW

check­in deadlines, refund and rebooking policies, and procedures and responsibility for delayed and/or cancelled flights. These terms and conditions may include liability limitations, claim­filing deadlines and other crucial conditions.

II.B. OBLIGATION OF CARRIER.

a. Cause the disclosure to be printed on or attached to the passenger ticket and/or boarding pass, or the incorporation of such terms and conditions of carriage by reference. Incorporation by reference means that the ticket and/or boarding pass shall clearly state that the complete terms and conditions of carriage are available for perusal and/or review on the air carrier’s website, or in some other document that may be sent to or delivered by post or electronic mail to the passenger upon his/her request.

b. Ensure that passengers receive an explanation of key terms identified on the ticket from any location where the carrier’s tickets are sold, including travel agencies. In case of online bookings, the air carrier must establish a system wherein the purchaser is fully apprised of the required disclosures.

c. The same shall be verbally explained to the passenger by the air carrier and/ or its agent/s in English or Filipino, or in a language that is easily understood by the purchase, placing emphasis on the limitations and/or restrictions attached to the ticket.

Any violation of the afore­mentioned provisions shall be a ground for the denial of subsequent applications for approval of promotional fare, or for the suspension or recall of the approval made on the advertised fare/rate.

Section 5. Right to Clear and Non­Misleading Advertisement of, and Important Reminders Regarding Fares. Advertisement of fares shall be clear and not misleading.

Section 6. Right Against Misleading and Fraudulent Sales Promotion. Consistent with the declared policy of the State to protect the interests of the consumers, which includes protection from misleading and fraudulent sales promotion practices, all sales promotion campaigns and activities of air carriers shall be carried out with honesty, transparency and fairness, and in accordance

15 || AVIATION LAW

with the requirements of the Consumer Act of the Philippines, and it Implementing Rules and Regulations.

Section 7. Right to Transportation and Baggage Conveyance. Every passenger is entitled to transportation, baggage conveyance and ancillary services, in accordance with the terms and conditions of contract of carriage with the carrier. Thus, any violation of terms and conditions of carriage due to the fault or negligence of the air carrier shall entitle the passenger to compensation or alternative arrangements.

Section 8. Right to be Processed for Check­in. In accordance with the usual air procedures, a passenger holding a confirmed ticket, whether promotional or regular, with complete documentary requirement, and who has complied with the check­in procedures, shall be processed accordingly at the check­in counter within the check­in deadline. The airline shall, therefore, and subject to infrastructure limitations, clearly designate the boundaries of its assigned check­in area/s or counter/s.

A passenger within the air carrier’s cordoned or other designated check­in area as herein defined at least one (1) hour before the published estimated time of departure (ETD) shall not be considered late or no­show and shall not be denied check­in. The carrier shall exert utmost diligence in ensuring that passengers within the cordoned or other designated check­in area and/or line up check­in counters are checked in for their flights before the check­in deadline.

A passenger who is late in accordance with the preceding paragraph may be denied check­in and directed to a standby or rebooking counter, as the case may be, for proper processing.

Section 9. Right to Sufficient Processing Time. Passengers shall be given enough time before the published ETD within which to go through the check­in and final security processes.

International Airports – two (2) hours before ETD

Domestic Airports – one (1) hour before ETD

To ensure that PWDs and senior citizens shall have equal access to air

16 || AVIATION LAW

transportation services. Accordingly, an air carrier shall designate at least one (1) check­in counter which will prioritize PWDs, senior citizens and persons requiring special assistance or handling. If this is not practicable, the air carrier shall instead provide for priority handling and processing such passengers. The air carrier shall likewise coordinate with the appropriate authorities for the use of proper airport equipment, entryways and/or aerobridges, as the case may be, when the same are available, to facilitate transactions, movement, boarding and/or disembarkation of PWDs, senior citizen, and/or persons requiring special equipment, at the airport.

Persons accompanying the PWD, a senior citizen or a person requiring special assistance or handling should also be accompanied at the designated check­in counter mentioned. It is the duty of the air carrier or it authorized agent to inform its passengers if additional costs will be incurred for the use of facilities designed for passengers needing special assistance in airports located in other countries.

It is the responsibility of a PWD to declare his/her need for special assistance or handling to the airline, upon booking his/her flight. If the PWD fails to do so, the airline may not be held liable for any services it was not able to provide the passenger and/or for any additional costs incurred for the use of special assistance facilities.

Section 10. Right to Board Aircraft for the Purpose of Flight. A passenger checked in for a particular flight has the right to board the aircraft for the purpose of flight, except for but not limited to the following legal or valid cause, to wit:

a. Immigration issues

b. Safety and security

c. Health concerns

d. Non­appearance at the boarding gate at the appointed boarding time

e. Government requisition of space

Other than these causes, no passenger may be denied boarding without his/her consent.

10.1 While it is an accepted practice for an air carrier to overbook its flights, any expense, consequence or inconvenience caused to affected passengers must be borne by the air carrier as follows:

a. The air carrier shall determine the number of passengers in excess of

17 || AVIATION LAW

the total seat capacity of the aircraft.

b. The air carrier shall announce that the flight is overbooked and that it is looking for volunteers willing to give up their seats in exchange for air carrier compensation.

c. The air carrier shall provide the interested passengers or volunteers a list of amenities and offers, which they can choose from, which list amenities shall always include the option to be given priority booking in the next flight with available space or to be endorsed to another air carrier upon payment of any fare difference, and provided that space and other circumstances permit such accommodation, at the option of the passenger, and/or cash incentive.

d. In case the number of volunteers is not enough to resolve the overbooking, the air carrier shall increase the compensation package by certain degrees or by adding more amenities/services until the required number of volunteers is met.

Section 11. Right to Compensation and Amenities in Case of Cancellation of Flight.

11.1 In case of flight cancellation attributable to the carrier, a passenger shall have the right to:

a. Be notified beforehand via public announcement, written/published notice and flight status update service (text);

b. Be provided with the following, if he/she is already at the airport at the time the announcement of the flight cancellation:

­ Sufficient refreshment or meals (e.g. snacks consisting of at least a bottle of water and a sandwich, or breakfast, lunch or dinner, or a voucher for the same, as the case maybe);Hotel accommodation (conveniently accessible from the airport);

­ Transportation from the airport to the hotel, v.v.;

­ Free phone calls, text or e­mails; and

­ First­aid kits, if necessary

c. Reimbursement of the value of the fare, including taxes and surcharges, of the sector cancelled, or both/all sectors, in case the passenger decides

18 || AVIATION LAW

not to fly the ticket or all routes/sectors; or

d. Be endorsed to another air carrier without paying any fare difference at the option of the passengers, and provided that space and other circumstances permit such re­accommodations; or

e. Rebook the ticket, without additional charges, to the next flight with available space, or within thirty (30) days, to a future trip within the period of validity of the ticket. However, for rebooking made in excess of the aforementioned thirty (30) days for a trip likewise within the validity of the ticket, fees and/or fare difference shall apply.

In case the air carrier cancels a flight at least twenty­four (24) hours before the ETD, it shall not be liable for the foregoing amenities, except, it shall be obliged to notify the passenger, and in accordance with the preceding provisions, to rebook or reimburse the passenger, at the option of the latter.

11.2 In case the air carrier cancels the flight because of force majeure, safety and/ or security reasons, as certified by the Civil Aviation Authority of the Philippines, a passenger shall have the right to be reimbursed for the full value of the fare.

Section 12. Right to Compensation and Amenities in Case of Flight Delay and Exceptions Thereto.

Terminal Delay of at least three (3) hours after the ETD, whether or not attributable to carrier, a passenger shall have the right to:

a. Be provided with refreshments or meals (sufficient snacks, breakfast, lunch or dinner, as the case maybe, free phone calls, text or e­mails, and first­aid, if necessary; and

b. Rebook or refund his/her ticket in accordance with the preceding Section or to be endorsed to another carrier, in accordance with the preceding Section.

Terminal Delay extends more than six (6) hours after the ETD for causes attributable to the carrier:

a. Be deemed cancelled for the purpose of making available to the

19 || AVIATION LAW

passenger the rights and amenities required to be provided in case of actual cancellation; and b. In addition, an affected passenger shall be given the following:

­ Additional compensation equivalent to at least the value of the sector delayed or deemed cancelled to be paid in the form of cash or voucher, at the discretion of the carrier; and

­ The right to board the flight if it takes place more than six (6) hours after the ETD and the affected passenger has not opted to rebook and/or refund. For this purpose, the air carrier is obliged to exert all efforts to contact the passenger for the flight.

Tarmac Delay of at least two (2) hours after ETD, reckoned from the closing of the aircraft doors, or when the aircraft is at the gate with the doors still open but the passengers are not allowed to deplane, a passenger has the right to:

a. Provided with sufficient food and beverages.

Section 15. Right to Compensation in case of Death or Bodily Injury of a Passenger.

International Flights

a. In case of death or bodily injury sustained by a passenger, the relevant

convention and inter­carrier agreement shall apply:

Under the Warsaw Convention, the carrier is liable in international air transportation in the following circumstances:

Art. 17. The Carrier shall be liable for damage sustained in the event of the death or wounding of a passenger or any other bodily injury suffered by a passenger if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking.

Art. 19. The carrier shall be liable for damage occasioned by delay in the

20 || AVIATION LAW

transportation by air of passengers, baggage or goods.

In the cases covered by the above­quoted provisions, it is provided in the Convention that the “action for damages, however, founded, can only be brought subject to conditions and limits set out” therein, as follows:

Art. 22. (1) In the transportation of passengers, the liability of the carrier for each passenger shall be limited to the sum of 125,000 francs. Where in accordance with the law of the court to which the case is submitted, damages may be awarded in the form of periodical payments, the equivalent capital value of the said payments shall not exceed 125,000 francs. Nevertheless, by special contract, the carrier and the passenger may agree to a higher limit of liability.

b. For an international carriage performed under the 1996 Montreal Inter­Carrier Agreement, which includes a point in the United States of America as a point of origin, a point of destination or agreed stopping place, the limit of liability for each passenger for death, wounding or other bodily injury shall be the sum of Seventy­Five Thousand United States Dollars (US$75,000.00), inclusive of legal fees and cost. Provided, in the case of a claim brought in a state where a provision is made for a separate award for legal fees and costs, the limit shall be the sum of Fifty­Eight Thousand United States Dollars (US$58,000.00), exclusive of legal fees and costs.

Domestic Flights

a. The compensation shall be based on the stipulated amount in the relevant convention which governs international flights, the same shall to be given in Peso denomination.

II.C. BREACH OF CONTRACT. Breach of Contract is defined as the failure without legal reason to comply with the terms of a contract. It is also defined as “failure, without legal cause, to perform any promise which forms the whole or part of the contract.”

21 || AVIATION LAW

The following were instances considered the existence of breach of contract in the duty of the airline carrier to its passengers:

a. When an airline company bumped off a passenger with confirmed reservation or downgraded the passenger’s seat accommodation from one class to a lower class.

b. When an airline company upgraded the seat accommodation of a passenger if the passenger has not consented thereto.

c. When an airline did not looked after the convenience and comfort of the passenger even if the flight was cancelled due to fortuitous event.

d. When an airline did not safeguard the comfort, convenience and safety of its stranded passenger because the Supreme Court rules that delay or diversion of flight due to fortuitous event does not terminate the contract of carriage. The carrier must also communicate to its passenger the consequences of the delay in their flight so that the passenger can make proper arrangements.

e. The carrier may be held liable for the rude and discourteous treatment of its passengers not only by the crew inside the vessel but also the staff in the airport as well as the staff in branch offices of the carrier. Thus, moral damages may be awarded in one case where the passenger was subjected to a very poor service, verbal abuse and abject lack of respect and consideration.

II.C.A.PROVISIONS OF THE NEW CIVIL CODE.

Art. 1756. In case of death or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they have proved that they observed extraordinary diligence as prescribed in Articles 1733 and 1755.

Art. 1733. Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all circumstances of each case.

Art. 1755. A common carrier is bound to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of a very cautious person, with due regard for all the circumstances.

22 || AVIATION LAW

Art. 1757. The responsibility of a common carrier for the safety of passengers as required under 1733 and 1755 cannot be dispensed with or lessened by stipulation, by the posting of notices, statements on tickets, or otherwise.

Art. 1758. When a passenger is carried gratuitously, a stipulation limiting the common carrier’s liability for negligence is valid, but not for wilful act or negligence.

The reduction of fare does not justify any limitation of the common carrier’s liability.

Art. 1759. Common carriers are liable for the death of or injuries to passengers through the negligence or wilful acts of the former’s employees, although such employees may have acted beyond the scope of their authority or in violation of the orders of the common carriers.

This liability of the common carriers does not cease upon proof that they exercised all the diligence of a good father of a family in the selection and supervision of their employees.

Art. 1760. The common carrier’s responsibility prescribed in the preceding article cannot be eliminated or limited by stipulation, by the posting of notices, by statements on the tickets or otherwise.

Art. 1761. The passenger must observe the diligence of a good father of family to avoid injury to himself.

Art. 1762. The contributory negligence of the passenger does not bar recovery of damages for his death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the amount of damages shall be equitably reduced.

Art. 1763. A common carrier is responsible for injuries suffered by a passenger on account of the wilful acts or negligence of other passengers or of strangers, if the common carrier’s employees through the exercise of the diligence of good father of a family could have prevented or stopped the act or omission.

II.C.B. ACTION FOR DAMAGES.

AVAILABLE REMEDIES FOR AN INJURED PASSENGER

a. Civil case for breach of contract of carriage against the common carrier and not against the driver because the contract of carriage is between the common carrier

23 || AVIATION LAW

and the passenger. The driver was merely acting as an agent of the common carrier.

Liability of Common Carrier : Direct and Primary

Quantum of Evidence Required : Preponderance of Evidence

Defense of due diligence in the selection and supervision of employee, though may mitigate liability, is not a complete defense in culpa contractual or breach of contract of carriage. The burden of proof lies in the common carrier that it exercise extraordinary diligence to avoid injury to passengers.

b. A criminal case against the driver for reckless imprudence resulting in physical injuries or homicide or damaged to properties.

Quantum of Evidence Required : Proof Beyond Reasonable Doubt

Liability of Driver : Direct and Primary

Liability of Common Carrier : Subsidiary Liable in terms of civil

liability in case of insolvency of the

driver

c. A case of culpa aquiliana or quasi­delict against the common carrier even if there is a pre­existing contractual relationship between them. However, in cases of culpa aquiliana or quasi­delict the injured passenger has the burden of proving negligence of the common carrier and his driver, and the defense of due diligence in the selection and supervision of employee is a complete defense of the common carrier as employer to avoid civil liability.

Art. 1764. Damages in cases comprised in this section shall be awarded in accordance with Title XVIII of this Book (New Civil Code), concerning Damages. Article 2206 shall also apply to the death of a passenger caused by the breach of contract by a common carrier.

Art. 2206. The amount of damages for death caused by a crime or quasi­delict shall be at least Three thousand pesos (P3,000.00), even though there may have

24 || AVIATION LAW

been mitigating circumstances. In addition:

1. The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of permanent physical disability not caused by the defendant, had no earning capacity at the time of his death;

2. If the deceased was obliged to give support according to the provisions of Article 291, the recipient who is not an heir called to the decedent’s inheritance by the law of testate or intestate succession, may demand support from the person causing the death, for a period not exceeding five year, the exact duration to be fixed by court.

3. The spouse, legitimate and illegitimate descendants or ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.

II.C.C. PRESCRIPTIVE PERIOD. Action must be filed within 2 years from: a. date of arrival at the destination; b. date of expected arrival; and c. date on which the transportation stopped. (Art. 29)

Art. 29 (Warsaw Convention)1. The right to damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.2. The method of calculating the period of limitation shall be determined by the law of the Court seised of the case.

II.C.D. JURISDICTION.

Investigation of air accidents is within the jurisdiction of the director general of the CAAP and the Aircraft Accident Investigation and Inquiry Board (AAIIB), which is also under the CAAP (section 49, CAAP Law). As its system, the AAIIB follows ICAO annex 13 on Aircraft Accident and Incident Investigation. The AAIIB has the power to promulgate rules and regulations governing the notification and the reporting of accidents and incidents involving aircraft (section 42(a), CAAP Law).

25 || AVIATION LAW

In respect of death of, or injury to, passengers or loss or damage to baggage or cargo in respect of domestic carriage are governed by Civil Code on Laws on Common Carrier.

With respect to international transportation and tt the option of the plaintiff, the action for damages may be filed in the (Art. 28(1) Warsaw Convention):

a. Court of domicile of the carrier;b. Court of its principal place of business;c. Court where it has a place of business through which the contract has been made; ord. Court of the place of destination.

It is the passenger’s “ultimate destination” not “an agreed stopping place” that determines the country where suit is to be filed.

Art. 28 (Warsaw Convention)1. An action for damages must be brought, at the option of the plaintiff, in the territory of one of the High Contracting Parties, either before the Court having jurisdiction where the carrier is ordinarily resident, or has his principal place of business, or has an establishment by which the contract has been made or before the Court having jurisdiction at the place of destination.2. Questions of procedure shall be governed by the law of the Court seised of the case.

III. CIVIL AVIATION AUTHORITY OF THE PHILIPPINES AND CIVIL AERONAUTICS BOARD. Two government bodies regulate aviation in the Philippines: the Civil Aviation Authority of the Philippines (CAAP) by virtue of Republic Act No. 9497 or the CAAP Law and the Civil Aeronautics Board (CAB) by virtue of Republic Act No. 776, as amended by Presidential Decree 1462.

The CAAP acts as the public registry for aircraft and generally regulates the technical, operational, safety and security aspects of aviation while the CAB regulates the economic aspect of air transport, and has the general supervision, control and jurisdiction over air carriers, general sales agents, cargo sales agents and airfreight forwarders.

The CAAP, through its director general, prescribes rules, regulations, or minimum standards governing practices, methods and procedures that are necessary to provide adequately safe civil aviation. The director general has the power (Sec. 35 of the CAAP

26 || AVIATION LAW

Law), among others:

a. to issue airmen certificates to individuals who possesses the proper qualifications for, and are physically able to, perform the duties pertaining to the position for which the airman certificate is sought;

b. to issue airworthiness certificates for Philippine­registered aircraft, after it is found that the aircraft conforms with the appropriate type of certificate and is in a condition allowing for safe operation; and

c. to issue air operator certificates to air carriers that are properly and adequately equipped and have demonstrated the ability to conduct safe operations.

The safety regulations for both commercial and non­commercial air transport are contained in the Philippine Civil Aviation Rules (PCAR) promulgated by the CAAP.

Only foreign air carriers duly designated by their respective governments with, which the Philippines has an air service agreement (ASA), can operate in the Philippines by applying for a foreign air carrier’s permit (FACP) with the CAB. The foreign air carrier must submit an FACP application form, together with the required attachments (including articles of incorporation and by­laws of the foreign air carrier, Securities and Exchange license to conduct business in the Philippines, and a note verbal designating the applicant as an official carrier to the Philippines), to the CAB. Upon publication of the application and notice to affected airlines, the CAB will conduct a hearing to determine whether it will issue a FACP in favor of the foreign carrier applicant.

Generally, a permit authorizing a person to engage in domestic air commerce or air transport can only be granted to a Philippine citizen. A Philippine citizen is defined in Section 3(r) of RA 776 and Section 3(gg) of CAAP Law as:

a. an individual who is a citizen of the Philippines;

b. a partnership of which each member is such an individual;

c. a corporation or association created or organized under the laws of the Philippines, of which the directing head and two­thirds or more of the board of directors and other managing officers are citizens of the Philippines, and in which 60 per cent of the voting interest is owned or controlled by persons who are citizens of the Philippines

Note, however, that foreigners residing in the Philippines who are members of aero clubs organized purely for recreation, sport, or the development of flying skills, may be issued permits as a prerequisite to any aeronautical activities within Philippine airspace.

Air carriers must seek specific approval from the CAB to operate as such. The CAB

27 || AVIATION LAW

requires air carriers to have a minimum paid­up capital ranging from 10 million pesos for carriers with domestic non­scheduled flights to 50 million pesos for carriers with domestic and international scheduled flights.

Philippine rules and regulations require that any person or entity wishing to engage in air commerce or transport, whether foreign or domestic, must secure a certificate of public convenience and necessity from the CAB.

Foreign carriers who wish to operate to and from the Philippines must also secure a permit from the CAB before they can operate in the Philippines. These permits ensure that the person or entity wishing to engage in air transport has the financial and technical capability to perform such services.

IV. WARSAW CONVENTION.

IV.A. PURPOSE AND APPLICABILITY. The Warsaw Convention on Air Transport applies to international air carriage. The Warsaw Convention to which the Republic of the Philippines is a party and which has the force and effect of law in this country applies to all international transportation of persons, baggage or goods performed by an aircraft gratuitously or for hire. As enumerated in the Preamble of the Convention, one of the objectives is "to regulate in a uniform manner the conditions of international transportation by air."

IV.B. LIABILITY OF CARRIER. The Warsaw Convention provides that the carrier is liable in international air transportation in the following instances:

Art. 17. The carrier shall be liable for damages sustained in the the event of the death or wounding of a passenger or any other bodily injury suffered by a passenger if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking

Art. 18. (1) The carrier shall be liable for damage sustained in the event of the destruction or loss of, or of damage to, any checked baggage, or any goods, if the occurrence which caused the damage so sustained took place during the transportation by air.

28 || AVIATION LAW

(2) The transportation by air within the meaning of the preceding paragraph shall comprise the period during which the baggage or goods are in charge of the carrier, whether in an airport or on board an aircraft, or, in the case of a landing outside an airport, in any place whatsoever.

(3) The period of the transportation by air shall not extend to any transportation by land, by sea, or by river performed outside an airport, if, however, such transportation takes place in the performance of a contract for transportation by air, for the purpose of loading, delivery, or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the transportation by air.

Art. 19. The carrier shall be liable for damage occasioned by delay in the transportation by air of passengers, baggage, or good.

In the cases covered by the above­quoted provisions, it is provided in the Convention that the "action for damages, however, founded, can only be brought subject to conditions and limits set out therein. The limitations provided for in the first paragraph of Article 22 are as follows:

Art. 22. (1) In the transportation of passengers, the liability of the carrier for each passenger shall be limited to the sum of 125,000 francs. Where in accordance with the law of the court to which the case is submitted, damages may be awarded in the form of periodical payments, the equivalent capital value of the said payments shall not exceed 125,000 francs. Nevertheless, by special contract, the carrier and the passenger may agree to a higher limit of liability; (2) In the transportation of checked baggage and of goods, the liability of the carrier shall be limited to 250 francs per kilogram, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of the value of delivery and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that the sum is greater than the actual value to the consignor at delivery; (3) As regards objects of which the passenger takes charge himself, the liability of the carrier shall be limited to 5000 francs per passenger; (4) The sums mentioned above shall be deemed to refer to the French franc consisting of 65­1/2 milligrams of gold at the standard of fineness of nine hundred thousandths.

29 || AVIATION LAW

These sums may be converted into any national currency in rounded figures.

c. The Warsaw Convention however denies to the carrier resort to "the provisions which exclude or limit his liability, if the damage is caused by his willful misconduct or by such default on his part as, in accordance with the law of the court seized of the case, is considered to be equivalent to willful misconduct," or "if the damage is (similarly) caused... by an agent of the carrier acting within the scope of his employment." The Hauge Protocol amended the Warsaw Convention by removing the provision that if the airline took all necessary steps to avoid the damage, it could exculpate itself completely, and declaring the stated limits of liability not applicable "if it proved that the damage resulted from an act or omission of the carrier, its servants or agents, done with intent to cause damage or recklessly and with knowledge that damage would probably result." The same deletion was effected by the Montreal Agreement of 1966, with the result that a passenger could recover unlimited damages upon proof of willful misconduct.

IV.C. LIMIT OF LIABILITY. The liability of the carrier for injuries to passengers under the Warsaw Convention is 250,000 francs. However, by special contract, the carrier and the passenger may agree to a higher limit of liability.

a. With respect to registered baggage and cargoes, the limit of liability is 250 francs per kilogramme. If the passenger or consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires, the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that sum is greater than the actual value to the consignor at delivery.

b. In determining the amount to which the carrier's liability, only the total weight of the package or packages concerned shall be considered except when the value of other packages covered by the same baggage check or the same air waybill are affected, the total weight of such other packages or packages shall also be taken into consideration in determining the limit of liability.

c. With respect to objects which the passenger takes charge himself, the limit of liability is 5,000 francs per passenger.

d. The Guatemala Protocol of 1971 increased the limit for passengers to $100,000.00 and $1,000 for baggage. However, the Supreme Court noted in Santos III v. Northwest Orient Airlines, et al. that the Guatemala Protocol is still

30 || AVIATION LAW

ineffective.

IV.D. MEANING OF INTERNATIONAL TRANSPORTATION. There is international transportation within the contemplation of the Warsaw Convention when:

a. The place of departure and the place of of destination are within the territories of two contracting countries regardless of whether or not the there was a break in the transportation or transhipment;

b. The place of departure and the place of destination are within the territory of a single contracting country if there is an agreed stopping place within a territory subject to the sovereignty, mandate or authority of another power, even though the power is not a party to the Convention.

IV.D. TORT LIABILITY. The Warsaw Convention does not provide for an exclusive enumeration of instances when the carrier is liable. It does not provide for an absolute limit of liability and it does not preclude the application of the Civil Code and other pertinent local laws. Hence, a complaint for quasi­delict cans till be filed even if the filing is beyond the prescriptive period provided for under the Convention so long as it is within the prescriptive period of four years under the Civil Code.

31 || AVIATION LAW