Republic of the Philippines , Department of Transportation and Communications CIVIL AERONAUTICS BOARD OLD MIA ROAD, PASAY CITY, = METRO MANILA * Gieertepther th INRE: Motions for the Reconsideration of Resolution Nos. 28 and 29, s. 2012, Suspending the Airlines’ Option to Overbook and Restrictions on Refundability and Rebookability of Air Fares, Respectively. CEBU AIR, INC., ZEST AIRWAYS, INC., AIRASIA, INC. SEAIR, INC. ‘Movants. RESOLUTION NO. 44 (BM4-06-13-2012) WHEREAS, The Civil Aeronautics Board (the Board), in the exercise of its regulatory powers, adopted on 11 May 2012 Resolution Nos. 28 and 29, series of 2012, which suspended, until further notice, overbooking as a revenue-management option, and the non-rebookability and non-refundability conditions attached to low-cost or promotional fares for domestic flights of local carriers; WHEREAS, the Board saw the suspensions as a necessary step while it conducts further studies and investigations to ensure that the practices are not inherently inimical to public interests, citing a need to re-examine, among others, the propriety of the mentioned airline practices vis-a-vis their obligation to provide services that are efficient and convenient for passengers; WHEREAS, while Sec. 22 of R.A. No. 776 empowers the Board, to suspend any permit or the exercise of any privilege or authority whenever this is necessary to avoid serious or irreparable damage or inconvenience to the public, the same provision is without prejudice to any interested person filing with the Board a protest or memorandum in support of or opposition to such Suspension; WHEREAS, On 7 June 2012, herein movants Cebu Air Inc., Zest Airways, Inc., and AirAsia Inc. (Movants), filed their respective Motions for Reconsideration, praying that Resolution Nos. 28 and 29 be set aside. SEAIR Inc. submitted its Motion for Reconsideration and appeared before the Board on even date; WHEREAS, while the Board should promote the growth and development of local air carriers, it as an equally paramount objective to secure the protection and convenience of the users of air transportation services; NOW, THEREFORE, the Board has RESOLVED, as it hereby RESOLVES, to DENY the Movants’ Motions for Reconsideration insofar as they pray for the Board to set aside the assailed Resolutions. The Board, however, also RESOLVED, as it hereby RESOLVES, to MODIFY the application of Resolution Nos. 28 and 29, as follows: Rationale 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 same resolutions both expressly state that they are the guidelines to be followed until further notice, which means that the practices are under continuous Airline MRs/BM 6-13-12 Page 1review and investigation by the Board for possible fine-tuning of the abovementioned regulations, as befitting in an industry as dynamic as scheduled air services. 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 Resolution 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 Rights shall have been subjected to public hearings and approved. Effectivity This resolution shall take effect immediately upon its approval by the Board. Adopted 13 June 2012 Mandaluyong City, Philippines. AR b> HON: Gost) PERPETVO M, LOTILLA UNDERSECRETARY FOR LEGAL SERVICES Department Of Transportation and Communications Alternate Chairman HON. DANIEL G. CORPUZ UNDERSECRETARY FOR PLANNING AND PROMOTIONS DEPARTMENT OF TOURISM Alternate Vice Chairman as DIR. GEN. RAMON S. GUTIERREZ (COL, PAF RET) CIVIL AVIATION AUTHORITY OF THE PHILIPPINES Member Member Member Attested by: BLDRIC i tan ing Boaydl Secretary Noted: ae L. ARCILLA Executive Director Page 2