Cebu Pacific assesses impact of P52-M fine

MANILA, Philippines - Budget airline Cebu Air Inc. (Cebu Pacific) is currently assessing the impact of the P52.11 million fine imposed by the Civil Aeronautics Board (CAB).

Cebu Pacific vice president for corporate affairs Jorenz Tañada said the airline has already received CAB Resolution 4 (BM 01-01-12-2015) pertaining to the fine imposed on the low cost carrier.

“We are currently in the process of reviewing the document, and its attendant legal ramifications. We note that there may be some matters of fact requiring clarification, and are evaluating all our options accordingly,” Tañada said.

On Monday, the CAB Board slapped a P52.11-million fine on Cebu Pacific over complaints of flight delays and cancellations during the Christmas holidays.

The regulator has decided to impose a punitive fine on Cebu Pacific after receiving thousands of complaints for flight delays and cancellations that started in Dec. 24.

A total of 10,400 passengers were affected by the flight delays and cancellations. The CAB Board decided to impose a P5,000 fine for every affected passenger.

CAB executive director Carmelo Arcilla earlier said the agency decided to issue a strong reprimand to Cebu Pacific on top of the hefty fine.

Arcilla said the CAB Board also required Cebu Pacific to establish and maintain appropriate service standards for all its personnel, organic and outsourced, especially those manning the check-in counters.

During the hearing, Arcilla said, Cebu Pacific clung to its arguments that while it committed lapses in the handling of passengers, the main contributory factor to the disruption was air traffic congestion and terminal infrastructure deficiencies.

 “After considering all available data and arguments, the Board concluded that the main culprit was Cebu Pacific’s operational lapses and mishandling of passengers,” he added.

According to him, fines collected by the CAB for violations of RA 776 otherwise known as the Civil Aeronautics Act of the Philippines are remitted to the national coffers.

No less than Transportation Secretary Joseph Emilio Abaya ordered a full blown investigation on the incident wherein long queues at the Cebu Pacific counters caused chaos at the international gateway.

Data submitted by Cebu Pacific to the investigating panel showed that a total of 288 flights were delayed while 20 flights were cancelled between Dec. 24 and Dec. 26.

Of the 145 flights scheduled last Dec. 24, Cebu Pacific said 102 were delayed while 13 were cancelled. On Christmas day, 79 of the total 149 flights were delayed while three were called off. In Dec. 26, Cebu Pacific said 107 of the 145 scheduled flights were delayed while four flights were cancelled.