MANAY et al vs. CEBU AIR, INC. GR No. 210621 April 4, 2016 Leonen, J.

FACTS: On June 13, 2008, Carlos S. Jose (Jose) purchased 20 Cebu Pacific round-trip tickets from Manila to
Palawan for himself and on behalf of his relatives and friends. Jose alleged that he specified to Alou, the
Cebu Pacific ticketing agent that his preferred date and time of departure from Manila to Palawan should be on
July 20, 2008 at 8:20 a.m. and that his preferred date and time for their flight back to Manila should be on July
22, 2008 at 4:15 p.m. After paying for the tickets, Alou printed the tickets, which consisted of three (3) pages,
and recapped only the first page to him. Since the first page contained the details he specified to Alou, he no
longer read the other pages of the flight information.

After their trip or on the afternoon of July 22, 2008, the group proceeded to the airport for their flight back to
Manila. During the processing of their boarding passes, they were informed by Cebu Pacific personnel that
nine (9) of them could not be admitted because their tickets were for the 10:05 a.m. flight earlier that day. Jose
informed the ground personnel that he personally purchased the tickets and specifically instructed the ticketing
agent that all 20 of them should be on the 4:15 p.m. flight to Manila. Upon checking the tickets, they learned
that only the first two (2) pages had the schedule Jose specified. They were left with no other option but to
rebook their tickets. They then learned that their return tickets had been purchased as part of the promo sales
of the airline, and the cost to rebook the flight would be 7,000.00 more expensive than the promo tickets. The
sum of the new tickets amounted to 65,000.00.

They offered to pay the amount by credit card but were informed by the ground personnel that they only
accepted cash. They then offered to pay in dollars, since most of them were balikbayans and had the amount
on hand, but the airline personnel still refused. Eventually, they pooled enough cash to be able to buy tickets
for five (5) of their companions. The other four (4) were left behind in Palawan and had to spend the night at an
inn, incurring additional expenses. Upon his arrival in Manila, Jose immediately purchased four (4) tickets for
the companions they left behind, which amounted to 5,205.

Later in July 2008, Jose went to Cebu Pacifics ticketing office in Robinsons Galleria to complain about the
allegedly erroneous booking and the rude treatment that his group encountered from the ground personnel in
Palawan. Jose and his companions were unsatisfied with Cebu Pacifics response so they filed a Complaint for
Damages against Cebu Pacific before Branch 59 of the Metropolitan Trial Court of Mandaluyong. The
Complaint prayed for actual damages in the amount of 42,955.00, moral damages in the amount of
45,000.00, exemplary damages in the amount of 50,000.00, and attorneys fees.

The Metropolitan TC rendered its Decision ordering Cebu Pacific to pay Jose and his companions 41,044.50
in actual damages and 20,000.00 in attorneys fees with costs of suit. Cebu Pacific appealed to the RTC,
which was subsequently dismissed. Cebu Pacific appealed to the CA, arguing that it was not at fault for the
damages caused to the passengers.

On December 13, 2013, the CA rendered the Decision granting the appeal and reversing the Decisions of the
MeTC and the RTC. According to it, the extraordinary diligence expected of common carriers only applies to
the carriage of passengers and not to the act of encoding the requested flight schedule. It was incumbent upon
the passenger to exercise ordinary care in reviewing flight details and checking schedules. Cebu Pacifics
counterclaim, however, was denied since there was no evidence that Jose and his companions filed their
Complaint in bad faith and with malice.
ISSUE: Whether respondent Cebu Air, Inc. is liable for damages for the issuance of a plane ticket with an
allegedly erroneous flight schedule

HELD: NO. Common carriers are required to exercise extraordinary diligence in the performance of its
obligations under the contract of carriage. This extraordinary diligence must be observed not only in the
transportation of goods and services but also in the issuance of the contract of carriage, including its ticketing
operations. The obligation of the airline to exercise extraordinary diligence commences upon the issuance of
the contract of carriage. Ticketing, as the act of issuing the contract of carriage, is necessarily included in the
exercise of extraordinary diligence. Once a plane ticket is issued, the common carrier binds itself to deliver the
passenger safely on the date and time stated in the ticket. The contractual obligation of the common carrier to
the passenger is governed principally by what is written on the contract of carriage.

The common carriers obligation to exercise extraordinary diligence in the issuance of the contract of carriage
is fulfilled by requiring a full review of the flight schedules to be given to a prospective passenger before
payment. Based on the information stated on the contract of carriage, all three (3) pages were recapped to
petitioner Jose. The only evidence petitioners have in order to prove their true intent of having the entire group
on the 4:15 p.m. flight is petitioner Joses self-serving testimony that the airline failed to recap the last page of
the tickets to him. They have neither shown nor introduced any other evidence before the Metropolitan Trial
Court, Regional Trial Court, Court of Appeals, or this Court.

Even assuming that the ticketing agent encoded the incorrect flight information, it is incumbent upon the
purchaser of the tickets to at least check if all the information is correct before making the purchase. Once the
ticket is paid for and printed, the purchaser is presumed to have agreed to all its terms and conditions.
Considering that respondent was entitled to deny check-in to passengers whose names do not match their
photo identification, it would have been prudent for petitioner Jose to check if all the names of his companions
were encoded correctly. Since the tickets were for 20 passengers, he was expected to have checked each
name on each page of the tickets in order to see if all the passengers names were encoded and correctly
spelled. Had he done this, he would have noticed that there was a different flight schedule encoded on the
third page of the tickets since the flight schedule was stated directly above the passengers names. Moreover,
the tickets were issued 37 days before their departure from Manila and 39 days from their departure from
Palawan. There was more than enough time to correct any alleged mistake in the flight schedule.

Petitioners, in failing to exercise the necessary care in the conduct of their affairs, were without a doubt
negligent. Thus, they are not entitled to damages.

Final note: The Air Passenger Bill of Rights recognizes that a contract of carriage is a contract of adhesion, and
thus, all conditions and restrictions must be fully explained to the passenger before the purchase of the ticket.
It acknowledges that while a passenger has the option to buy or not to buy the service, the decision of the
passenger to buy the ticket binds such passenger[.] Thus, the airline is mandated to place in writing all the
conditions it will impose on the passenger. However, the duty of an airline to disclose all the necessary
information in the contract of carriage does not remove the correlative obligation of the passenger to exercise
ordinary diligence in the conduct of his or her affairs. The passenger is still expected to read through the flight
information in the contract of carriage before making his or her purchase. If he or she fails to exercise the
ordinary diligence expected of passengers, any resulting damage should be borne by the passenger.