Transportation Laws

Air
Transportation
 Air Transportation
Air Air Commerce Air Carrier
Transportation
In Service or carriage Air transportation A person, who undertakes
General of persons or for hire to engage in air transportation
goods by aircraft or air commerce

Domestic Air transportation Air commerce An air carrier who is:

within the limits of within the limits of *A citizen of the RP, or
the RP territory RP territory *Not a citizen of the RP but
may be allowed to
engage in domestic
and/or foreign air
commerce in the RP

Foreign Air transportation Air commerce An air carrier which is not a

between the RP between the RP citizen of the RP, or an air
and any place and any place carrier other than a domestic
outside it air carrier
outside it or
wholly outside
the RP
 Air Transportation
Regulatory Body in Air Transportation
Civil Aeronautics Board [CAB]
Requisite to Engage in Air Commerce
A Certificate of Public Convenience and
Necessity is a permit issued by the CAB
authorizing a person to engage in air
commerce and/or air transportation,
foreign and/or domestic [RA 776 Sec.
11]
Case: PAL v. CAB [270 SCRA 538]
Air Transportation

Warsaw
Convention
Warsaw Convention
In General:
1. Full Title Warsaw Convention for the
Unification of Certain Rules Relating to
International Carriage by Air
2. Date and Place Signed Warsaw
Poland, October 12, 1929
3. Formal Adherence Sep 23, 1955 by
Proclamation 201 issued by President
Ramon Magsaysay
Warsaw Convention
Applicability [Art. 1.1]
The Warsaw Convention shall
apply to:
1. All INTERNATIONAL
transportation of persons,
baggage or goods
2. Performed by aircraft for HIRE
 Warsaw Convention
Meaning of International Transportation [Art.
1.2]
Any transportation, in which according to the
CONTRACT made by the parties, the place
of departure and the place of destination,
w/n there be a break in the transportationare
situated either within the:
1. territories of 2 High Contracting Parties, or
2. territory of a single High Contracting Party,
IF there is an agreed stopping place within a
territory subject to the sovereignty, mandate
or authority of another power, even though
that power is not a party to this convention
 Warsaw Convention
Q: What is a High
Contracting Party?
A: A signatory to the
Warsaw Convention and
one who subsequently
adheres to it
 Warsaw Convention
Mapa v. CA [8 Jul 97]
Carrier:TWA
Place of purchase of
ticket: Bangkok
Sectors: LAX-NYC-BOS-
STL-CHI
Warsaw Convention
Effect when Transportation is Performed by
Several Successive Air Carriers [Art. 1.3)]
1. It shall be deemed, for the purposes of the
WC, to be one undivided transportation,
PROVIDED It has been regarded by the
parties as a single operation, whether it has
been agreed upon under the form of a single
contract or of a series of contracts, and
2. It shall not lose its international character
merely because one contract or a series of
contracts is to be performed entirely within a
territory subject to the sovereignty,
suzerainty, mandate, or authority of the
same High Contracting Party
Warsaw Convention
American Airlines v. Salas [9
Mar 2000]
Carriers: Successive
Place of purchase of ticket:
SQ in Manila
Sectors: MNL-SIN-ATH-LAR-
ROM-TUR-ZRH-GEN-CPH-
JFK
Ticket: Conjunction
Warsaw Convention
Liability of Carrier [Art. 17]
Art. 17 provides for the liability of the
carrier for damage suffered by a
passenger, sustained in the event
of:
1. the death, or
2. the wounding of a passenger, or
3. any other bodily injury
Warsaw Convention
Conditions for Liability [Art. 17]
The accident, which caused the
damage so sustained, took
place:
1. on board the aircraft, or
2. in the course of any of the
operations of embarking or
disembarking
Warsaw Convention
Liability of Carrier [Art. 18]
Art. 18 provides for the liability of the
carrier for damage sustained in
the event of the
[1] destruction or
[2] loss of, or
[3] of damage
to any checked baggage or goods
Warsaw Convention
Conditions for Liability
The occurrence, which
caused the damage, so
sustained took place
during the transportation
by air.
Warsaw Convention
Q: What comprises Transportation
by Air in reference to Art. 18[1]?
A: It shall comprise the period during
which the baggage or goods are in
charge of the carrier whether:
1. in an airport, or
2. on board an aircraft, or,
3. in the case of a landing outside an
airport, in any place whatsoever
Warsaw Convention
Q: Does the period of the transportation by
air shall extend to any transportation by
land, by sea, or by river performed
outside an airport?
A: As a General Rule, NO. 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
Warsaw Convention
Liability of Carrier for Delay [Art. 19]
The carrier shall be liable for damages
occasioned by delay in the
transportation by air of passengers,
baggage, or goods.
Warsaw Convention
Limitations to Liability of Air Carriers [Art. 22]
1. In transportation of PASSENGERS 125,000
francs [or equivalent], but carrier and pax
may agree to a higher limit of liability;
2. In transportation of CHECKED BAGGAGE or
GOODS 125 francs [or equivalent] per kilo,
unless the consignor declares a higher value
and pays a supplementary sum
3. As regards OBJECTS of which pax takes
charge HIMSELF [hand carried luggage]
5,000 francs [or equivalent] per pax
Warsaw Convention
Cases:
1. Pan Am v. IAC [164 SCRA 286]
2. Alitalia v. IAC [192 SCRA 9]
3. PAL v. CA [207 SCRA 100]
4. Sabena v. CA [Mar 14,1996]
5. British Airways v. CA [Jan 29,1998]
Warsaw Convention
Q: When is an Air Carrier NOT
entitled to the WC provisions
which EXCLUDE or LIMIT
Liability?
A: When the loss or damage is
caused by the WILLFUL
MISCONDUCT of the carrier
or its agent x x x [Art. 25]
Warsaw Convention
Q: What is the effect of receipt by
the person entitled to delivery of
luggage or goods without
complaint?
A: It is prima facie evidence that
the goods have been delivered
in good condition and in
accordance with the document
of transportation [Art. 26]
Warsaw Convention
Q: What is the duty of the shipper or consignee when the
goods are DAMAGED or when there is DELAY in their
delivery?
A: He must make a complaint to the carrier:
1. In case of DAMAGE the complaint must be made
forthwith after the discovery of the damage, and,
at the latest, within:
a. 3 days from the date of receipt in the case of
luggage, and
b. 7 days from date of receipt in the case of goods
2. In case of DELAY - the complaint must be made at
the latest within 14 days from the date on which
the luggage or goods have been placed at his
disposal [Art. 26]
Warsaw Convention
Form of the Complaint:
1. in writing upon the document of
carriage, or
2. by separate notice in writing
dispatched within the times
aforesaid [Art. 26]
Warsaw Convention
Effect of Failure to File
Complaint within Periods
Provided:
1. General Rule no action
shall lie against the carrier
2. Exception save in the case
of fraud on his [carriers] part
[Art. 26]
Warsaw Convention
Jurisdiction Art. 28[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 of the domicile of the
carrier or of his principal place of
business, or where he has a place of
business through which the contract has
been made, or before the court at the
place of destination.
Warsaw Convention
Where a Complaint for Damages
Against an Air Carrier May be
Instituted [Art. 28]:
1. The court of the domicile of the carrier;
2. The court of its principal place of
business;
3. The court where it has a place of
business through which the contract
had been made;
4. The court of the place of destination.
Warsaw Convention
Cases:
1. American Airlines v. CA [Mar
9, 2000]
2. Mapa v. CA
[Jul 8, 1997]
Warsaw Convention
Prescriptive Period in Filing a Case for
Damages against Carrier [Art. 29]:
Within two [2] years, reckoned from:
1. the date of arrival at the destination, or
2. the date on which the aircraft ought to
have arrived, or
3. the date on which the transportation
stopped
Warsaw Convention
Effect of Failure to File Action
against the Carrier within 2 years:
The right to damages shall be
extinguished
Warsaw Convention
Rule when Transportation Performed by
Successive Carriers under Art. 1.3
Each carrier who accepts pax, baggage or
goods shall be:
1. subject to the rules set out in the WC,
and
2. deemed to be one of the contracting
parties to the contract of transportation
insofar as the contract deals with the
part of transportation which is
performed under his supervision [Art.
30]
Warsaw Convention
Against whom can Pax take Action:
1. General Rule only against the carrier
who performed the transportation
during which the accident or delay
occurred,
2. Exception against the first carrier
when, by express agreement, it has
assumed liability for the whole journey
Warsaw Convention
Cases
1. KLM v. Mendoza [22 Jul 1975]
2. LUFTHANSA v. CA [24 NOV 1994]
3. China Airlines v. Chiok [30 Jul 2003]
Warsaw Convention
Rule with Respect to Baggage or Goods
1. The pax or consignor shall have a right to action
against the FIRST carrier
2. The pax or consignee who is entitled to delivery
shall have a right of action against the LAST
carrier
3. Each may take action against the carrier WHO
PERFORMED the transportation during which
the destruction, loss, damage or delay took
place
4. The carriers shall be JOINTLY liable to the pax
or to the consignor or consignee
Warsaw Convention
Q: Is the Warsaw Convention Binding in the
Philippines?
1. General Rule YES, it has the force and effect
of a law, being a treaty commitment assumed by
the Philippine Government
2. However it does NOT operate as:
a. an EXCLUSIVE enumeration of the
instances for declaring a carrier liable for
breach of contract of carriage, or
b. an ABSOLUTE limit of the extent of that
liability
Warsaw Convention
The WC must NOT be construed as to
PRECLUDE the operation of the Civil
Code and other pertinent laws

It does not regulate, much less exempt the

carrier from liability for damages for
violating the rights of the passengers
under the contract of carriage,
ESPECIALLY if willful misconduct on the
part of then carriers employees is found
or established.
Air Transportation

Bar
Questions
 Bar Questions
2003 # XI
Vivian was booked by PAL, which acted as ticketing agent of Far
East Airlines [FEA], for a round trip flight on FEA's aircraft,
from MNL-HKG-MNL. The ticket was cut by an employee of
PAL. The ticket showed that Vivian was scheduled to leave
Manila at 5:30 p.m. on 05 Jan 2002 aboard FEA 007.
Vivian arrived at the NAIA an hour before the time scheduled in
her ticket, but was told that FEA 007 had left at 12:10 p.m.
It turned out that the ticket was inadvertently cut and
wrongly worded. PAL employees manning the airport's
ground services nevertheless scheduled her to fly 2 hours
later aboard their plane. She agreed and arrived in HKG
safely.
The aircraft used by FEA developed engine trouble, and did not
make it to HKG but returned to MNL. Vivian sued both PAL
and FEA, for damages because of her having unable to
take the FEA flight. Could either or both airlines be held
liable to Vivian? Why? [6%]
 Bar Questions
1993 # XV
Z shipped 13 boxes through LG Airlines from Teheran to Manila.
Z did not declare an inventory of the contents or the value
of the 13 boxes. After the boxes arrived in Manila, Z was
able to claim only 12 pieces. Z advised LG of the loss of
one box. Efforts of LG to trace the missing box were
fruitless. Z filed an action for breach of contract with
damages against the LG.
LG alleged that the Warsaw Convention which limits the liability
of the carrier to a sum of $20 per kilo or $9.07 per pound,
unless a higher value is declared in advance and
additional charges are paid by the pax and the conditions
of the contract as set forth in the air waybill, expressly
subject the contract of the carriage of cargo to the WC.
May the allegation of LG be sustained? Explain.