August 13, 2020 AMENDMENTS TO THE CIVIL AVIATION LAW AND THE FEDERAL CONSUMER PROTECTION LAW

Dear clients and friends:

On June 26, 2017, amendments to the Civil Aviation Law and the Federal Consumer Protection Law were published in the Official Gazette of the Federation. These amendments have the protection of consumer rights as their guiding principle. Below you will find some of the most significant changes, which entered into force the day after their publication.

Air transport service providers shall:

(i) Respect and establish mechanisms to guarantee the transportation of passengers with disabilities;

(ii) Allow carriage at no additional charge of a stroller for children under the age of 2;

(iii) Inform the passenger at least 24 hours before the scheduled departure, about any change in their itinerary affected to the contracted service;

(iv) Allow passengers to use the return or connecting flight for the trip whose first segments have not been used;

(v) In case of delay in departure due to a cause attributable to the supplier, the passenger will be compensated and/or indemnified: 1) For a delay of more than 1 hour, according to the compensation policies of each permit holder or concessionaire that will be registered every 6 months before the Ministry of Communications and Transport (“MCT”) and Federal Consumer Protection Procuracy (“Profeco” for its Spanish abbreviation); 2) For a delay of more than 2 hours, but less than 4 hours, a discount of no less than 7.5% of the ticket price; 3) For a delay of more than 4 hours, compensate the passenger and give him/her the options and the compensation for the cancellation of the flight, which is the supplier's responsibility, as follows

1. Refund the price of the ticket or the proportion corresponding to the no realized part of the trip, in addition to covering an indemnification that will not be less than the corresponding 25%;
2. Offer substitute transportation on the first available flight and provide access to telephone calls and e-mails; food in accordance with the waiting time; hotel accommodation at the airport or in the city when an overnight stay is required and, in the latter case, ground transportation to and from the airport;
3. Transport at a later date that is convenient for the passenger to the cancelled destination, in addition to covering a compensation of no less than 25% of the ticket price or the unpaid portion.

(vi) Allow the passenger to cancel free of charge and return the full price of the ticket within 24 hours of purchase

(vii) Have fares that must[1] be permanently available to passengers; adhere to the concession or permit; explicitly contain the rules of application, or conditions and restrictions included in the offer; indicate their validity; be accurate, truthful, verifiable and clear, and not misleading or confusing to the passenger because of the false, exaggerated, partial, artificial or tendentious way in which they are presented; and apply equally to all passengers without any discrimination.

(viii) To have a module of attention to the passenger in each one of the terminals where they operate;

(ix) To present from the first moment the total cost of the ticket, taxes included;

(x) Not condition the purchase of the ticket to the mandatory hiring of additional services;

(xi) Publish through electronic or physical means, in the boarding area and in the passenger service modules, the causes for the delay of the flights and provide all the relative information for the presentation of complaints or claims to the consumers in the terminals where they operate, in accordance with the guidelines established by Profeco;

(xii) To inform consumers, at the time of purchase of the ticket and at the passenger service modules, about the terms and conditions of the service contracted, the compensation policies, as well as the list of passenger rights contained in the Civil Aviation Law, and to have such list at the service points, at the counters, at the reservation centers; as well as, on board the aircraft;

(xiii) Publish the rights of passengers constantly on its website, and travel agencies[2], through a special main link, link or window.

It should be noted that the reforms provide that, within 90 working days after their entry into force, suppliers must adapt their procedures to comply with their new obligations and register their compensation policies with the MCT and Profeco. In addition, in coordination with the MCT, they must carry out dissemination actions through advertising campaigns, to inform about the scope of the Civil Aviation Law reform.

Likewise, within 180 working days as of the entry into force of the reform, the Federal Executive will adjust to the Civil Aviation Law Regulation and other regulations, as well as issue Official Mexican Standards regarding the humane treatment of pets that are transported; ticket and baggage check formats. In the same term, the MCT shall implement a public, efficient and expeditious mechanism that, in case the departure of a flight is delayed or cancelled, allows the passenger to know the causes and determine if the service provider is responsible for them.

We remain at your service in case you would like more information about the impact of such changes.

[1] The sanctions for noncompliance in terms of rates will be total or partial closure for up to 90 days and a fine of $146,620.98 to $4'105,387.31. It should not go unnoticed that, if Profeco considers that any other non-compliance constitutes misleading advertising, it may impose the above-mentioned fine or one of 10% of the annual gross income of the offender obtained from the marketing of the goods, products or services advertised, corresponding to the last fiscal year in which the infringement was committed, in case of recidivism.

[2] Travel agencies in charge of ticket sales, reservations and counter checks must also comply with the rights of passengers under the Civil Aviation Law.