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
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;
Compensation is involved; and
Their services are offered to the public.
Public Service
Public service is involved in transporting tourists
The test is whether or not the service is offered to the public.
"Public"
The term “public” does not denote (indicate) numerous persons being transported.
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
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.
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)
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
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?
File a case of breach of contract or tort. (causing a disturbance, threatening, or other violent acts
which break public tranquility )
How to prove liability?
Breach of Contract Existence of a contract; and The fact of non-performance of the contract by the
common carrier.
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
Actual or compensatory
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.
Moral;
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.
Nominal;
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.
Temperate or moderate; ;
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.
Liquidated
Those agreed upon by the parties to a contract, to
paid in case of breach thereof.
Exemplary
This is imposed(force) by way of example or correction for the public good, in addition to other damages.
Civil Aeronautics Board (CAB)
Regulates the economic aspect of air transportation
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;
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.
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;
It approves or disapproves increase and/or decrease of capital, lease, purchase and sale of aircraft
of air carrier engaged in air commerce;
What is a Certificate of Public Convenience and Necessity?
It is a permit issued by CAB authorizing a person to engage in air commerce, whether foreign or
domestic.
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.
When does the CAB issue the CPCN?
When the applicant is fit, willing and able to perform such service; and
The service is required by public convenience and necessity.
What is an Air Carrier?
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?
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.
Domestic Air Commerce
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?
An individual who is a citizen of the Philippines; A partnership; or A
corporation or association
Air Transportation Office (ATO)
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.
It also adopts a system of registration of aircraft.
International Agreements
Convention on International Civil Aviation.
Convention on the International Recognition of Rights in Aircraft.
Shipping Industry
Maritime Industry Authority (MARINA) – PD 474, issued on 01 June 1974
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.
Functions of MARINA
Promotion and development functions;
Regulation and supervision functions
Mandatory accreditation is required for “primary tourism enterprises
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.
Secondary tourism enterprises refers to all other tourism enterprises.
Documents that must be submitted in order to be accredited by the DOT
Mayor’s permit/Municipal license
Business name certificate/AOI/By-Laws or Articles of Partnership and amendments thereto;
Proof of ownership of contract of lease over an area adequate to serve as maintenance depot and
garage for all its units;
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
Such other papers or documents as may be required from time to time by DOT.
For Tourist Land Information
A copy of the certificate of franchise or authorization for tourist car/bus service issued by the Land
Transportation Franchising Regulatory Board (LTFRB);
A copy of the transportation rates as approved by LTFRB; Pictures of
the vehicle; and
Such other papers or documents as may be required from time to time by DOT.
For Tourist Water Transport
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
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.