CATHAY PACIFIC AIRWAYS LTD.

, VS SPOUSES VAZQUEZ

FACTS:

Cathay Pacific Airways LTD was a common carrier engaged in the business of transporting passengers
and goods by Air. In its marketing strategy, Cathay accords its frequent flyers in its membership to
Marco Polo Club wherein the members enjoy privileges such as upgrading of flight booking without
extra charges whenever an opportunity arises.

Respondent-spouses Vazquezes, Dr. Daniel Vazquez and Mrs. Maria Luisa Vazquez booked a flight with
Cathay Pacific Airways for their way back to Manila from Hongkong together with their made and
friends. But at the departure gate, they were informed that their seat accommodation was upgraded
from Business Class to First Class due to their membership in Marco Polo Club wherein they were
privileged to enjoy such upgrade. Dr. Vazquez refused the upgrade and inform the ground steward that
it would not be nice for them as hosts, to travel in First Class while their guests, in the Business Class.
Moreover, Dr. Vazquez added that they would be discussing business matters during the flight. He also
added told Ms. Chiu that she could have other passengers be transferred to First Class instead of them.
Ms. Chiu, upon consulting her supervisor was told to handle the situation and convince Dr. Vazquez to
accept the upgrading. She told Dr. Vazquez that the Business Class Section was fully booked and that
being a member of Marco Polo Club they had the privilege to be upgraded to First Class Section. But still,
Dr. Vazquez refused the upgrading. Ms. Chui then told Dr. Vazquez that if they will not avail themselves
of the privilege, they will not be allowed to take the flight. Eventually, after talking with his friends, Dr.
Vazquez and his wife proceeded to First Class cabin.

ISSUE:

Whether or not the involuntary upgrading of seat accommodation of the spouse Vazquez constitutes
breach of contract?

HELD:

Yes. Although the Vazquezes had the priority of upgrading their seat accommodation such priority may
be waived, like what Dr. Vazquez did. It should have not been imposed on them over their vehement
objection. By insisting on the upgrade, Cathay Pacific Airways breached its contract of carriage with the
Vazquezes.