Case Digest: Air France vs. Court of Appeals, 126 SCRA 442, G.R. No. L-57339

 

Air France vs. Court of Appeals, 126 SCRA 442, G.R. No. L-57339, December 29, 1983

Subject: Transportation Law

FACTS

The Ganas purchased nine "open-dated" air tickets for the Manila/Osaka/Tokyo/Manila route from Air France through a travel agent in February 1970. The tickets had a validity period of one year, according to the International Air Transportation Association (IATA) tariff rules.

In January 1971, Jose Ganas sought the assistance of Teresita Manucdoc, for the extension of the validity of their tickets, which were due to expire on 8 May 1971. However, they were informed that extension was not possible unless the fare differentials resulting from the increase in fares triggered by an increase of the exchange rate of the US dollar to the Philippine peso and the increased travel tax were first paid.

Then the Ganas scheduled their departure on 7 May 1971 or one day before the expiry date. They were warned that the tickets could be used on 7 May 1971 but the tickets would no longer be valid for the rest of their trip because the tickets would then have expired on 8 May 1971. Notwithstanding the warnings, the GANAS departed from Manila in the afternoon of 7 May 1971 on board AIR FRANCE Flight 184 for Osaka, Japan.

In Osaka/Tokyo flight on 17 May 1971, Japan Airlines refused to honor the tickets because of their expiration, and the GANAS had to purchase new tickets. They encountered the same difficulty with respect to their return trip to Manila as AIR FRANCE also refused to honor their tickets.

The Ganas filed a lawsuit in CFI of Manila against Air France for breach of contract and moral damages. CFI (now RTC) dismissed the complaint based on Partial and Additional Stipulations of Fact on the documentary and testimonial evidence. On appeal, the CA reversed RTC’s decision.

ISSUE

Whether or not the GANAS have made out a case for breach of contract of carriage entitling them to an award of damages.

RULING

No, there was no breach of carriage of carriage entitling GANAS to the award of damages.

The General Tariff Rule is that all journeys must be charged for at the fare or charge in effect on the date on which transportation commences from the point of origin. Any ticket sold before a change of fare or charge increase or decrease occurring between the date of commencement of the journey, is subject to the above general rule and must be adjusted accordingly. A new ticket must be issued, and the difference is to be collected or refunded as the case may be. No adjustment is necessary if the increase or decrease in fare or charge occurs when the journey is already commenced."

In this case, Air carrier is not liable for breach of contract for having dishonored plane tickets of persons which had expired. From the foregoing tariff rules, it is clear that AIR FRANCE cannot be faulted for breach of contract when it dishonored the tickets of the GANAS after 8 May 1971 since those tickets expired on said date.