Question & AnswerQ&A (CAB Resolution NO. 74)
The CAB is authorized to fix and determine reasonable individual, joint or special rates, charges or fares which an air carrier may demand, collect or receive for any service in connection with air commerce.
It declares it unlawful to publish any false, deceptive or misleading advertisement, thereby protecting the interests and general welfare of the consumer.
To establish guidelines and procedures for the approval of promotional airfares and their advertisement to ensure transparency, protect public interest, and comply with RA 7394.
The Department of Trade and Industry (DTI) has exclusive jurisdiction over sales promotion campaigns and activities under RA 7394.
An airline must file a letter request addressed to the Executive Director stating restrictions, duration, and other conditions at least three days before implementation or publication.
The CAB must act with dispatch, and in no case longer than two days before publication of the promotional fare.
The CAB may approve if the proposed rates are not unduly preferential, discriminatory, or unreasonable, and the burden of proof is on the airline to show they are just and reasonable.
Factors include the effect on traffic movement, public interest in efficient transport at lowest cost, service quality standards, inherent advantages of air transportation, and the air carrier's need for sufficient revenues.
Advertisements must include restrictions, duration, conditions (like refund and rebooking policies), the actual or total ticket price, and contact details for additional information.
Only after the promotional fares have been approved by the CAB and assigned a CAB Permit (approval) number can they be advertised.
Violations after due notice and hearing may be subject to penalties and other sanctions under RA 776.
No, it applies only to the approval and advertisement of promotional fares but excludes sales promotion campaigns and activities under DTI jurisdiction.
The approval letters must contain numbered CAB approval codes and include conditions, restrictions, and duration, which must be referenced in any related advertisement.
Airlines may provide only the range of fuel surcharges and not specific surcharges for each route.
Passengers must have access to phone numbers, websites, or other contact details where they can obtain complete or additional information about the promotion.