Laws Regulating Tourist Transportation Business

What is a common carrier?
1. Common carriers are persons, corporations, firms, or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water or air, for compensation, offering their services to the public.
Requisites
1. They are persons, corporations, firms, or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water or air;
2. Compensation is involved; and
3. Their services are offered to the public.
Public Service
1. Public service is involved in transporting tourists
2. The test is whether or not the service is offered to the public.
3. "Public"
  1. The term “public” does not denote (indicate) numerous persons being transported.
  2. IMPORTANT: Offer of service is made to all persons in general without going through any selection process
Nature of Diligence (Careful and persistent work) Required
1. Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence (the virtue of hard work) in the vigilance (the action or state of keeping careful watch for possible danger or difficulties.) over goods and for the safety of the passengers transported by them, according to all circumstances of each case.
2. Common carriers are bound to carry the passengers as safely as human care and foresight (ability to predict or plan for the future ) can provide, using the utmost diligence of very cautious persons, with due regard for all the circumstances.
Presumption of Negligence (Failure to proper care)
1. In case of death or injuries, the presumption is that the common carrier acted negligently, unless the prove otherwise.
Responsibility of common carriers for acts of employees and strangers
1. Common carriers are liable if the death or injury suffered by the passenger is due to the negligence or willful acts of the carrier’s employees, even if such employees may have acted beyond the scope of their authority or in violation of the orders of the common carriers.
How to enforce liability?
1. File a case of breach of contract or tort. (causing a disturbance, threatening, or other violent acts which break public tranquility )
  1. How to prove liability?
    1. Breach of Contract Existence of a contract; and The fact of non-performance of the contract by the common carrier.
    2. Tort Fault or negligence of a common carrier; Damage suffered or incurred by the aggrieved party; and The relation of cause and effect between the fault or negligence of the common carrier and the damage incurred by the aggrieved party.
Damages Recoverable from Common Carriers
1. Actual or compensatory
  1. This is the adequate (acceptable) compensation for pecuniary (relating to) loss suffered by a person as he has proven. It is not limited to actual damages suffered by an injured person. It extends to those damages, which could have been foreseen (predicted)by the parties at the time they entered into the contract of carriage.
2. Moral;
  1. Moral damages include physical suffering,, mental anguish (pain), fright, serious anxiety, besmirched (damage) reputation, wounded feelings, moral shock, social humiliation, and similar injury. As a general rule, MD are not recoverable in breach of contract of carriage except if the common carrier acted fraudulently or in bad faith and the mishap results in the death of a passenger.
3. Nominal;
  1. It is awarded in order that a right of a person, which has been violated or invaded by the common carrier, may be vindicated or recognized, and not for the purpose of indemnifying such person for any loss suffered by him.
4. Temperate or moderate; ;
  1. These damages are more than nominal but less than compensatory damages. It may be recovered when the court finds that some pecuniary ( relating to) loss has been suffered, but its amount cannot, from the nature of the case, be proven with certainty.
5. Liquidated
  1. Those agreed upon by the parties to a contract, to paid in case of breach thereof.
6. Exemplary
  1. This is imposed(force) by way of example or correction for the public good, in addition to other damages.
Civil Aeronautics Board (CAB)
1. Regulates the economic aspect of air transportation
2. General supervision and regulation of the jurisdiction (power/right) and control over air carriers, general sales agents, cargo sales agents, and air freight forwarders (logistics), as well as their property, property rights, equipment, facilities and franchise;
3. Fixes and determines 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.
4. Authorized to grant any foreign airline an increase in frequencies and/or capacities on international routes when, in its judgment, the national interest requires it;
5. It approves or disapproves increase and/or decrease of capital, lease, purchase and sale of aircraft of air carrier engaged in air commerce;
6. What is a Certificate of Public Convenience and Necessity?
  1. It is a permit issued by CAB authorizing a person to engage in air commerce, whether foreign or domestic.
  2. It specifies, among others, the terminal and intermediate points between which the air carrier is authorized to operate; the time of arrival and departure at each point; and the frequency of flight.
  3. When does the CAB issue the CPCN?
    1. When the applicant is fit, willing and able to perform such service; and
    2. The service is required by public convenience and necessity.
What is an Air Carrier?
1. Air carriers are persons who undertake (attempt/guarantee), whether directly or indirectly or by lease or any other arrangements, air commerce.
What is Air Commerce?
1. It means and includes air transportation for pay or hire, navigation of aircraft in furtherance of a business or navigation of aircraft from one place to another for operation in the conduct of a business.
2. Domestic Air Commerce
  1. It means and includes air transportation within the limits of the Philippine territory, is reserved only to citizens of the Philippines.
Who is a citizen of the Philippines?
1. An individual who is a citizen of the Philippines; A partnership; or A corporation or association
Air Transportation Office (ATO)
1. It is responsible for the technical and operational phase of civil aviation matters. It investigates accidents involving aircraft and reports to the CAB the facts, conditions, and circumstances relating to the accidents.
2. It also adopts a system of registration of aircraft.
International Agreements
1. Convention on International Civil Aviation.
2. Convention on the International Recognition of Rights in Aircraft.
Shipping Industry
1. Maritime Industry Authority (MARINA) – PD 474, issued on 01 June 1974
2. Mandated to implement and pursue the government’s declared national policy and objective geared towards the comprehensive(complete) and integrated development of the country’s maritime industry.
3. Functions of MARINA
  1. Promotion and development functions; Regulation and supervision functions
4. Sectors of Maritime Industry
  1. Domestic shipping; Overseas shipping; Ship building, ship repair, and shipbreaking ;Maritime manpower
Accreditation of Tourist Transport Operators
1. Mandatory accreditation is required for “primary tourism enterprises
2. Primary tourism enterprises refers to travel and tour services; land, sea, and air transport services exclusively for tourist use; accommodation establishments; convention and exhibition organizers; tourism estate management services; and such other services as may be identified as may be identified by the Tourism secretary.
3. Secondary tourism enterprises refers to all other tourism enterprises.
Documents that must be submitted in order to be accredited by the DOT
1. Mayor’s permit/Municipal license
2. Business name certificate/AOI/By-Laws or Articles of Partnership and amendments thereto;
3. Proof of ownership of contract of lease over an area adequate to serve as maintenance depot and garage for all its units;
4. A list of names of all officials and employees, and their respective designations, nationalities, home addresses, certified correct under oath by the GM/President; and
5. Such other papers or documents as may be required from time to time by DOT.
For Tourist Land Information
1. A copy of the certificate of franchise or authorization for tourist car/bus service issued by the Land Transportation Franchising Regulatory Board (LTFRB);
2. A copy of the transportation rates as approved by LTFRB; Pictures of the vehicle; and
3. Such other papers or documents as may be required from time to time by DOT.
For Tourist Water Transport
1. A copy of the CPCN issued by MARINA; A copy of the transportation rates as approved by MARINA; Pictures of the vessel; A copy of the routes to be served and schedules; and Such other papers or documents as may be required from time to time by the DOT.
For Tourist Air Transport
1. A copy of the CPCN issued by CAB; A copy of the transportation rates as approved by CAB; Pictures of the plane; A copy of the routes to be served and flight schedules; and Such other papers or documents as may be required from time to time by the DOT.
Under the law, only Filipino citizens, or corporations or associations at least sixty percent (60%) of the outstanding capital stock of which is owned by Filipino citizens can engage in transportation business.
1. Investment in Transportation Business

Next up

Laws Regulating Tourist Transportation Business

Description

Resource summary

Similar

	Created by Romeo Merjudio over 8 years ago