Sovereignty and Air Freedoms

 The contracting States recognize that every State has complete

and exclusive sovereignty over the airspace above its territory
(Chicago Convention, Article 1 of Chapter 1)
 Air Services Agreement
1. The convention requires that the two governments shall have
negotiated a bilateral treaty between them that will define the
air traffic rights each grant to the other during the life of the
treaty

Freedoms of the Air

as enumerated by the International Civil Aviation Organization (ICAO)
1. First Freedom of the Air
o Right or privilege to fly across a State’s territory without
landing
2. Second Freedom of the Air
o Right or privilege to land in a State’s territory for non-traffic
purposes
3. Third Freedom of the Air
o Right or privilege to put down, in the territory of the first
State, traffic coming from the home State of the carrier
4. Fourth Freedom of the Air
o Right or privilege to put down, in the territory of the first
State, traffic destined for the home State of the carrier
5. Fifth Freedom of the Air
o Right or privilege to put down and to take on, in the territory
of the first State, traffic coming or destined to a third State of
the carrier

All freedoms beyond the Fifth as “so-called” because only the first five
freedoms have been officially recognized as such by international treaty.

6. Sixth Freedom of the Air

o Right or privilege of transporting via the home State of the
carrier, traffic moving between two other States
7. Seventh Freedom of the Air
o Right or privilege granted by one State to another State, of
transporting traffic between the territory of the granting State
and any third State with no requirement to include on such
operation any point in the territory of the recipient State (i.e,
the service need not connect to or be an extension of any
service to/from the home State of the carrier)
 8. Eighth Freedom of the Air
o Consecutive cabotage: Right or privilege of transporting
cabotage traffic between two points in the territory of the
granting State on a service which originates or terminates in
the home country of the foreign carrier, or outside the
territory of the granting State
9. Ninth Freedom of the Air
o Right or privilege of transporting cabotage traffic of the
granting State on a service performed entirely within the
territory of the grating State

Kuwait Airways Corp v. PAL

Kuwait Airways and Philippine Airlines (PAL) entered into a
Commercial Agreement to assist each other to develop traffic on the
route Kuwait-Bangkok-Manila and vice-versa. They obligated to share
revenue earned from the uplift of passenger. Effective upon the signing
of the Confidential Memorandum of Understanding (CMU), the exercise
of the third and fourth freedom traffic rights shall not be subject to any
royalty payment or commercial agreements. A month later, Kuwait
Airways sent a letter informing PAL that by virtue of the CMU the
termination of the royalty payment is in effect. PAL insisted that the
Agreement should continue to be in force and petitioner is still
obligated to pay PAL revenue until such date. Kuwait Airways refused
to pay.

The "freedom traffic rights" referred to in the Agreement are the so

called "five freedoms" contained in the International Air Transport
Agreement (IATA) signed in Chicago on 7 December 1944. Under the
IATA, each contracting State agreed to grant to the other contracting
states, five "freedoms of air."

Among these freedoms were "[t]he privilege to put down passengers,

mail and cargo taken on in the territory of the State whose nationality
the aircraft possesses" (Third Freedom); "[t]he privilege to take on
passengers, mail or cargo destined for the territory of the State whose
nationality the aircraft possesses" (Fourth Freedom); and the right to
carry passengers from one's own country to a second country, and
from that country to a third country (Fifth Freedom). In essence, the
Kuwait Airways flight was authorized to board passengers in Kuwait
and deplane them in Manila, as well as to board passengers in Manila
and deplane them in Kuwait. At the same time, with the limitation in the
exercise of Fifth Freedom traffic rights, the flight was barred from
boarding passengers in Bangkok and deplaning them in Manila, or
boarding passengers in Manila and deplaning them in Bangkok.

Cancellation of Commercial Agreement

 The government, through the Civil Aeronautics Board (CAB) has
the indispensable authority to compel local air carriers to comply
with government determined policies, even at expense of
economic rights
 CAB has the “general supervision and regulation of, and
jurisdiction and control over, air carriers as well as their property,
property rights, equipment, facilities and franchise (Section 10 of
RA 776)

Cabotage
 Two types:
1. Consecutive Cabotage
 Right or privilege, in respect of scheduled international
air services, of transporting cabotage traffic between
two points in the territory of the granting State on a
service which originates or terminates in the home
country of the foreign carrier outside the territory of the
granting State
2. Stand Alone Cabotage
 Right or privilege of transporting cabotage traffic of the
granting State on a service performed entirely within
the territory of the granting State
 The Philippines has not granted the right of cabotage in this
jurisdiction
 Chapter 8
Obligations of Carrier in Air Transportation
Extraordinary Diligence in Air Transportation
 Obligation to make sure that the aircraft is airworthy
 That the vessel has a competent captain and crew
 That the captain and crew exercised extraordinary diligence in
operating the aircraft

Not complied with if:

 Pilot had been inflicted with a tumor for a long time
 Plane did not take the designated route which could have avoided
a crash

Issuance of Tickets
 Is a guarantee to the passenger that the airline would honor the
tickets, assume him of a space in the flight, and transport him for
that segment of his trip corresponding to the confirmed ticket

Airworthiness
 The aircraft must be in such a condition that it must be able to
withstand the rigors of the flight
 That an aircraft, its engines, propellers and other components and
accessories, are of proper design and construction, and are safe
for air navigation purposes, such design and construction being
consistent with accepted engineering practice and in accordance
with aerodynamic laws and aircraft science
 Under the Civil Aviation Regulation, the registered owner or
operator of an aircraft is responsible for maintaining that aircraft in
an airworthy condition

Tariff System
 A tariff is a rule or condition of air travel that regulates and binds
the airline and passengers
 Developed and imposed by air carriers with the approval of the
Civil Aeronautics Board
 Provided for in the tickets that are binding, although they are in the
nature of contracts of adhesion
Care of Baggage
 Air carriers are liable when:
1. The baggage of their passengers were either damaged, or
their contents were lost or stolen
2. The baggage was transported or diverted to another place
3. In case of off-loading of baggage
4. When there was delay in the delivery of the baggage
5. If the baggage is lost altogether

Baggage or Cargo Inside the Cabin

Section 8 of the Civil Aviation Regulations issued by the CAAP provides:

8.9.2.14
CARRY-ON BAGGAGE

a) No person may allow the boarding of carry-on baggage into the

passenger cabin unless it is adequately and securely stowed in
accordance with the operator's approved Operations Manual
procedures.
b) No person may allow aircraft passenger entry doors to be closed
in preparation for taxi or pushback unless at least one required
crew member has verified that each article of baggage has been
properly stowed in overhead racks with approved restraining
devices or doors or in approved locations aft of the bulkhead.
c) No person may allow carry-on baggage to be stowed in a
location that would cause that location to be loaded beyond its
maximum placard mass limitation.

Note: The stowage locations shall be capable of restraining the articles

in crash impacts severe enough to induce the ultimate inertia forces
specified in the emergency landing conditions under which the aircraft
was type-certified.

8.9.2.15
CARRIAGE OF CARGO IN PASSENGER COMPARTMENTS

a) No person may allow the carriage of cargo in the passenger

compartment of an airplane except as prescribed by the
Authority.
b) Cargo may be carried anywhere in the passenger compartment if
it is carried in an approved cargo bin that meets the following
requirements:
 (1) The bin must withstand the load factors and emergency
landing conditions applicable to the passenger seats of the
airplane in which the bin is installed, multiplied by a factor
of 1.15, using the combined mass of the bin and the
maximum mass of cargo that may be carried in the bin.
(2) The maximum mass of cargo that the bin is approved to
carry and any instructions necessary to insure proper
mass distribution within the bin must be conspicuously
marked on the bin.
(3) The bin may not impose any load on the floor or other
structure of the airplane that exceeds the load limitations
of that structure.
(4) The bin must be attached to the seat tracks or to the floor
structure of the airplane, and its attachment must
withstand the load factors and emergency landing
conditions applicable to the passenger seats of the
airplane in which the bin is installed, multiplied by either
the factor 1.15 or the seat attachment factor specified for
the airplane, whichever is greater, using the combined
mass of the bin and the maximum mass of cargo that may
be carried in the bin.
(5) The bin may not be installed in a position that restricts
access to or use of any required emergency exit, or of the
aisle in the passenger compartment.
(6) The bin must be fully enclosed and made of material that
is at least flame resistant.
(7) Suitable safeguards must be provided within the bin to
prevent the cargo from shifting under emergency landing
conditions.
(8) The bin may not be installed in a position that obscures
any passenger's view of the "seat belt" sign, "no smoking"
sign, or any required exit sign, unless an auxiliary sign or
other approved means for proper notification of the
passenger is provided.
c) Cargo, including carry-on baggage, must not be stowed in toilets.
d) Cargo, including carry-on baggage must not be stowed against
bulkheads or dividers in passenger compartments that are
incapable of restraining articles against movement forwards,
sideways or upwards and unless the bulkheads or dividers carry
a placard specifying the greatest mass that may be placed there,
provided that:
(1) It is properly secured by a safety belt or other tie-down
having enough strength to eliminate the possibility of
 shifting under all normally anticipated flight and ground
conditions.
(2) It is packaged or covered to avoid possible injury to
occupants.
(3) It does not impose any load on seats or in the floor
structure that exceeds the load limitation for those
components.
(4) It is not located in a position that obstructs the access to,
or use of, any required emergency or regular exit, or the
use of the aisle between the crew and the passenger
compartment, or is located in a position that obscures any
passenger's view of the "seat belt" sign, "no smoking" sign
or placard, or any required exit sign, unless an auxiliary
sign or other approved means for proper notification of the
passengers is provided.
e) Cargo, including carry-on baggage, may be carried anywhere in
the passenger compartment of a small aircraft if it is carried in an
approved cargo rack, bin, or compartment installed in or on the
aircraft, if it is secured by an approved means, or if it is carried in
accordance with each of the following:
(1) For cargo, it is properly secured by a safety belt or other
tie-down having enough strength to eliminate the
possibility of shifting under all normally anticipated flight
and ground conditions, or for carry-on baggage, it is
restrained so as to prevent its movement during air
turbulence.
(2) It is packaged or covered to avoid possible injury to
occupants.
(3) It does not impose any load on seats or in the floor
structure that exceeds the load limitation for those
components.
(4) It is not located in a position that obstructs the access to,
or use of, any required emergency or regular exit, or the
use of the aisle between the crew and the passenger
compartment, or is located in a position that obscures any
passenger's view of the "seat belt" sign, "no smoking" sign
or placard, or any required exit sign, unless an auxiliary
sign or other approved means for proper notification of the
passengers is provided.
(5) It is not carried directly above seated occupants.
(6) It is stowed in compliance with these restrictions during
takeoff and landing.
(7) For cargo-only operations, if the cargo is loaded so that at
 least one emergency or regular exit is available to provide
all occupants of the aircraft a means of unobstructed exit
from the airplane if an emergency occurs.

Duty to Passenger
 Because the passengers in a contract of carriage do not contract
merely for transportation, they have a right to be treated with
kindness, respect, courtesy and consideration
 The operation of a common carrier is a business affected with
public interest and must be directed to serve the comfort and
convenience of passengers
 Passengers are human beings with human feelings and emotions;
they should not be treated as mere numbers or statistics for
revenue

Saludo Jr v. CA
Petitioners brought the remains of their mother Crispina Saludo
through a PAL flight leaving San Francisco for Manila. The casket was
switched with another remains thereby causing the delay of the
delivery thereof to the relatives.

Are the Petitioners are entitled to moral and nominal damages due to
the actions of Trans World Airlines (TWA)’s employees?

NO for moral damages; YES for nominal damages.

Petitioner were agonized over the possibility of losing their mother's

mortal remains, unattended to and without any assurance from the
employees of TWA that they were doing anything about the situation.
They were entitled to the understanding and humane consideration
called for by and commensurate with the extraordinary diligence
required of common carriers, and not the cold insensitivity to their
predicament. Airline companies are hereby sternly admonished that it
is their duty not only to cursorily instruct but to strictly require their
personnel to be more accommodating towards customers, passengers
and the general public. After all, common carriers such as airline
companies are in the business of rendering public service, which is the
primary reason for their enfranchisement and recognition in our law.

Moral damages may be awarded for wilful or fraudulent breach of

contract or when such breach is attended by malice or bad faith. The
censurable conduct of TWA's employees cannot, however, be said to
have approximated the dimensions of fraud, malice or bad faith. It can
be said to be more of a lethargic reaction produced and engrained in
some people by the mechanically routine nature of their work and a
racial or societal culture which stultifies what would have been their
accustomed human response to a human need under a former and
different ambience.

Nonetheless, the facts show that petitioners' right to be treated with

due courtesy in accordance with the degree of diligence required by
law to be exercised by every common carrier was violated by TWA and
this entitles them, at least, to nominal damages from TWA alone.

Breach of contract
 Failure without legal reason to comply with the terms of a contract
 Failure, without legal excuse, to perform any promise which forms
the whole or part of the contract
 Contracts may be breached through: delay, fraud or negligence