Cebu Pacific to appeal new CAB policy on overbooking, rebooking and fare refund

Budget carrier Cebu Pacific on Tuesday said that it will appeal the Civil Aeronautics Board (CAB) policy resolutions that stop airlines from overbooking flights, allowing flight rebooking and refunding of promo fares.

 

“Cebu Pacific will file a motion to reconsider CAB Resolution Nos. 28 and 29 on rebooking, refunds, and overbooking because of their far-reaching consequences,” the budget carrier said in a statement released on Tuesday.

 

“The current CAB resolutions will increase the cost of airline operations, forcing airlines to raise their fares and stop offering the piso and other value fares,” it added.

 

CAB Resolution 28 stops budget carriers from overbooking flights as revenue-management practice, while Resolution 29 authorizes low-cost carriers to refund fares and rebook flights even under promo prices.

 

The resolutions were issued last May 4, and received a number of criticisms from local budget carriers.

 

On June 1, CAB upheld the resolutions which take effect after June 15.

 

CAB Resolution No. 29 further notes that the policy on refund and rebooking of flights has been under review as “complaints stemming from the non-refundability and non-rebookability of low-cost fares have become prevalent.”

 

The CAB resolutions only apply to domestic flights, precisely because international airlines would never accept such restrictions, the company said.

 

Cebu Pacific argued that airlines overbook certain flights “in an attempt to fill seats left empty by passengers who do not show up for their flights or do not cancel prior to the flight’s departure.”

 

“Trains, ships and hotels and every other airline worldwide also overbook,” the Cebu Pacific claimed.

 

The CAB resolutions “will slow if not drop” the number of passengers choosing air transport, the airline also claimed.

 

“These CAB resolutions will deprive passengers the choice to fly; for the average Juan, it is back to buses, boats or trains,” the company claimed.

 

As value fares became prevalent, domestic passengers increased from 8.5 million in 2006 to 18.8 million in 2011, Cebu Pacific noted. —Rouchelle Dinglasan/GMA News