Scope and Application of Guidelines
- Guidelines pertain exclusively to the approval of promotional fares and their advertisements.
- Sales promotion campaigns and activities under R.A. No. 7394 are under the Department of Trade and Industry's jurisdiction.
- Guidelines ensure transparency and compliance with consumer protection laws.
Application Procedure for Promotional Fares
- Airlines must file a letter request to the CAB Executive Director at least three days before promotion or publication.
- Request must include restrictions, duration, and other conditions of the promotional fare.
- CAB must act on the application within two days, expediting the approval process.
Criteria for Evaluation of Promotional Fare Applications
- Evaluation follows Section 10 (C)(2) of RA 776 emphasizing reasonableness and non-discrimination.
- The airline bears the burden of proving fare justness and reasonableness.
- Considerations include:
- Impact on traffic movement.
- Public interest for efficient and affordable air transport.
- Quality and character of service.
- Advantages of air transport.
- Carrier's need for sufficient revenue for sound management.
Terms of Approval and Monitoring
- Approval specifies conditions, restrictions, and duration of the promotional fare.
- Seat availability per sector need not appear in ads but must be provided to the CAB for monitoring.
Numbering System for CAB Approvals
- Every approved promotional fare receives a CAB Approval Number for identification.
- This number must appear in advertisements related to the promotional fare.
Advertisement Requirements
- Promotional fares may only be advertised after CAB approval and issuance of a permit number.
- Advertisements must include:
- Essential information such as restrictions, duration, refund and rebooking policies.
- Clear and noticeable presentation of the fare conditions and total price.
- If surcharges vary, only the range needs to be disclosed.
- Contact details for further information (phone, website, etc.).
Consumer Accessibility and Transparency
- Advertisements must provide accessible channels for consumers to obtain complete information
(e.g., number of seats, schedules, conditions).
Enforcement and Penalties
- Violations of the guidelines, after notice and hearing, are subject to penalties and sanctions under RA 776.
Effectivity and Additional Provisions
- Resolution takes effect 15 days after publication.
- Existing laws and regulations remain unaffected.
- Executive Director authorized to act on applications for promotional fares and advertisements.