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Press Release

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Proposed Measures for Handling the Booking of Passengers 60 Days in Advance in the Event that Airline Flights are Grounded

Date:2018-04-03
Source:Department of Consumer Protection

There is a huge impact on travelers whenever airlines suspends or terminates a flight service. Under the coordination of the Department of Consumer Protection, Executive Yuan's (the DCP), an amendment to Article 13-1 of the Civil Aviation Administration Regulations has been made by the Civil Aeronautics Administration (the CAA), Ministry of Transportation and Communications. The provision stipulates that airlines planning to halt domestic routes should submit mechanisms for handling the booking of passengers as well as any related consumer protection measures for approval, and should halt domestic routes 60 days after authorization. In regard to the halting of international routes, the above information should also be submitted for reference 60 days prior to the halting date.

The DCP has stated that, due to business considerations, when airlines are able to adjust for other factors such as the termination of an air route, decisions are sometimes made in haste or managed inappropriately, which often influence the itinerary arrangements of passengers or impair their rights and interests. In the event of such an occurrence, in general a passenger's only recourse is to grin and bear it. For example, on July 21, 2016, a certain airline company announced that it would be suspending its flight route from Istanbul, Turkey, allowing passengers and travel agencies only a 4-day lead time to make emergency changes to flights and itineraries. Moreover, in August 2015, an airline that announced the suspension of its Bali route was unable to provide full refunds and only allowed for a change in the flight, causing the CAA to become involved in ensuring a full refund would be offered. Similar events have led to many consumer disputes and have affected numerous passengers.

In order to resolve this sort of problem, the DCP convened a meeting in November 2016. The CAA was asked to collect information to help in understanding foreign standards about the submission of approval of halting plans of routes by airline companies, and to review related regulations in order to clarify the scope of responsibility that airlines should bear in the matter. The CAA then referred to Japan's regulations that govern the amendment of civil aviation transport management rules in regard to airlines suspending or terminating flight routes. In such cases, there should be at least a set period of 60 days before a suspension or termination, and the mechanism to manage the booking of passengers and related consumer protection measures must be submitted for approval. This includes the number of passengers booked, the proposed measures (such as in helping passengers to take other flights, providing a full refund and offering alternative itineraries), and the handling of passenger-derived expenditures, whereby the CAA is tasked with reporting to the Ministry of Transportation and Communications for approval or reference so as to reduce the impact on passengers. However, due to factors of force majeure, the set period can be less than 60 days.

In the event that an airline closes its doors for business, because comparably broader aspects are involved, then upgrading the legal parameters to Article 48 of the Civil Aviation Law will update industry exit mechanisms. That is, airlines should first bring forward management plans to the Ministry of Transportation and Communications, and will only be allowed to cease business operations or to close doors 60 days after being approved of the Ministry. A draft amendment to the law has been sent to the Legislative Yuan (the Parliament) for further review.

The DCP has stated that implementing the new measure will make it possible to improve the decision of the airlines to stop routes unilaterally in light of their own operational considerations. This gives airlines the legal responsibility to settle passenger settlement plans within a fixed time. The DCP has asked the CAA to supervise the implementation of the airlines in order to protect the rights and interests of passengers.