Wednesday, September 19, 2018
  • share this

CebuPac pays P52-M penalty

/ 05:17 AM January 30, 2015


MANILA, Philippines—Cebu Pacific, the country’s biggest budget carrier, has fully paid the P52.1-million penalty slapped on it by the government for numerous flight delays and cancellations during the busy Christmas holidays.

Civil Aeronautics Board (CAB) Executive Director Carmelo Arcilla on Thursday said the government had received the full amount. A Cebu Pacific spokesperson also confirmed the payment on Thursday.


“The amount was directly deposited in the account of the National Treasury in accordance with the rules,” Arcilla said.

The payment was made after the CAB earlier this month found Cebu Pacific in violation of its certificate of public convenience and necessity.

In deciding on the fine, the CAB cited “operational lapses and mishandling of passengers” on Dec. 24 to 26, 2014. As many as 10,400 passengers were affected during the period, the CAB said.

Cebu Pacific, which earlier blamed bad weather and airport congestion, also admitted in a hearing last week that the situation was caused by a high amount of absenteeism by the ground handling staff that it contracted from a third-party provider.

Cebu Pacific CEO Lance Golongwei also apologized for the blunder last week.

As noted, the fine went directly to the government, not to the affected passengers, prompting some lawmakers to suggest that the CAB should play a bigger role in this regard.

The CAB, however, explained the limitations of its power and role.

Arcilla said passengers, with its assistance, could seek “satisfaction of their rights from the airline” or they could pursue a legal case through the local courts.

“The CAB is an administrative agency invested with authority under its charter to oversee the aviation industry, through the issuance of pertinent orders and regulations,” Arcilla said.


“However, it may not be within the prerogative of the CAB under its limited jurisdiction to assess a situation as the Dec. 24-25 event, and determine compensation, in a manner that is akin to an adjudication of rights and award of damages that properly pertains to the courts of law,” he added.

The 2012 Air Passenger Bill of Rights outlines how passengers can be compensated. Specifically, a delay of at least six hours grants a passenger either a free rebooking or refund on top of “compensation” equal to the value of the ticket, Arcilla said.

Cebu Pacific, a subsidiary of Gokongwei-led JG Summit Holdings Inc., is the only profitable domestic carrier operating today and is largely credited with bringing down the overall cost of air travel in the Philippines.


Cebu Pacific offers full refund to passengers in airport chaos

Cebu Pacific execs grilled over holiday chaos at Naia 3


Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Cebu Pacific, flight delays, JG Summit Holdings Inc., Lance Gokongwei, Penalty
For feedback, complaints, or inquiries, contact us.

Canada opioid deaths hits 8,000

September 19, 2018 07:43 AM


Sex with Trump ‘least impressive’ for Stormy Daniels

September 19, 2018 07:02 AM


All-time low ratings for ‘lackluster’ Emmys

September 19, 2018 06:50 AM


China imposes retaliatory tariffs on $60bn in US goods

September 19, 2018 06:42 AM

© Copyright 1997-2018 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.