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ARTICLE 21

DENIED BOARDING COMPENSATION

Section 1.  AMOUNT OF DENIED BOARDING COMPENSATION

(a)  Subject to the exceptions provided hereinafter under Section 2,  Carrier shall pay to Passengers holding confirmed reservation and who have presented themselves for carriage at the proper time and place and fully complied with Carrier's check-in and reconfirmation procedures and who are acceptable for carriage under the Carrier's Tariffs, but who have been denied boarding for unavailability of space, a compensation equivalent to the full  value of the first remaining flight coupon plus the amount of One Hundred Fifty Pesos (PHP150.00), Philippine Currency for domestic flights.  For international flights, the denied boarding compensation shall be in an amount equivalent to Two Thousand Pesos (PHP2,000.00) Philippine Currency if the passenger opts to avail of the hotel accommodations and Five Thousand Pesos (PHP5,000.00) Philippine Currency if the Passenger will not avail of the hotel accommodations.  In either case, the Passenger shall be entitled to a free of charge roundtrip ticket for the flight segment where the passenger was denied boarding, subject to the carrier's limitations and conditions.

(b)  The compensation for denied boarding due to unavailability of space shall  constitute liquidated damages for damages  incurred by the Passenger.

(c)  The Passenger shall, in addition to the liquidated damages, have priority of booking for the next available flight using the same Ticket for which he was denied boarding provided, however, that, incapacitated Passengers, the elderly and unaccompanied minors shall have priority over other Passengers.

Sec.  2.   EXCEPTIONS OF ELIGIBILITY
A Passenger shall not be eligible for denied boarding compensation if:

(a)  the flight for which the Passenger holds  confirmed reservations is unable to accommodate  him because of: (1)  government requisition of space; or (2) substitution of equipment of lesser capacity when required by operational and/or safety reasons and/or other causes beyond the control of the Carrier;

(b)  the flight is cancelled due to operational and/or safety reasons,  force majeure, weather, strikes, or other causes beyond the control of the Carrier; or

(c)  the Carrier arranges for comparable air transportation or for other transportation which, at the time such  arrangement is made, is scheduled to arrive at the place of the Passenger's  next stop-over, or place of his destination not  later than three hours from the scheduled arrival time on the flight where he holds a confirmed reservation.

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