cttee. report no.98

7/28/2019 Cttee. Report No.98

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Republic of the Philippines

HOUSE OF REPRESENTATIVESQuezon City

ARTEMIO A. ADASADeputy SecretaIy General for Operations

CESAR S. PAREJAExecutive Director, Plenary Affairs Bureau

VICTORIANO C.CAOILEService Director ITBills and Index Service

ARLENE C. DADA-ARNALDODeputy SecretaIy General for Committee Affairs

COMMfITEE REPORT ON H.B. No. __ 3 _ 1 _ 5 _ 6 _

We are transmitting six (6) copies of Committee Report submitted by the Committee onTransportation jointly with the Committee on Government Reorganization, GovernmentEnterprise and the Committee on Appropriations on HO~Se-BillNo. - - - - 3 .. .1 . 5 .. R . entitled:

"AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF THEPHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS

THEREFORE, AND FOR OTHER PURPOSES"

ARL NE C. DADA-ARNALDODepu Secretary General { i t v


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Republic oftne PhilippinesHOUSE OF REPRESENTATIVES

QuezonCity

FOURTEENTH CONGRESSFirst Regular Session

COMMITTEE REPORT NO. _ _ 9_ 8

Submitted by the Committee on Transportation, Committee on GovernmentReorganization, Committee on Government Enterprises and Privatization, and the

Committeeon Appropriationson~;

3156

Representatives Puentevella, Fabian, Alfelor Jr., Lagman, Angara,Zamora(M.) and the Membersof the CommitteesonTransportation,GovernmentReorganization, GovernmentEnterprisesandPrivatization,andAppropriations.

The Committees on Transportation, Government Reorganization, GovernmentEnterprises and Privatization and Appropriations to which were referred House BillNo. 152,introducedbyRepresentativeJuanEdgardoM. Angara, entitled:

"THE REGULATION OF ALL CIVIL A VIATION ACTIVITIES ANDINSTITUTION OF SAFETY REQUIREMENTS, DEFINING ITS POWERS

AND FUNCTIONS, AND FOR OTHER PURPOSES"

"ANACT

CREATING THE CIVIL AVIATION AUTHORITYOF THE PHILIPPINES,

AUTHORIZING THE APPROPRIATIONS OF FUNDS THEREFOR, AND FOR

OTHER PURPOSES"


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"AN ACT

CREATING THE PHILIPPINE CIVIL A VIATION A UTHORITY, DEFINING ITS

POWERS AND APPROPRIATING FUNDS THEREFOR, AND FOR OTHER

PURPOSES"

"AN ACT

CREATING THE PHILIPPINE CIVIL AVIATION AUTHORITY"

haveconsidered the sameand havethe honor.toreport the~T~ to the House withtherecommendation that the attachedHouseBill No. t1 \) 6 ,entitled:

"ANACTCREA11NG mE CIVIL AVIATION AUTIfORITY OF mE PHILipPINES. AUTHORIZING mE

APPROPRIATION OF FUNDS mEREFORE. AND FOR OTHER PURPOSES"

be approved in substitution of House Bill Nos. 152, 246, 1732, and 3046 withRepresentatives Angara, Zamora (M.), Puentevella, Madrona, Fabian, Alfelor J r,Lagman, and the members of the Committees on Transportation, GovernmentReorganization, GovernmentEnterprises andPrivatization andAppropriations as authorsthereof.

REP. EDCEL C. LAGMAN

ChairmanCommitteeonAppropriations

REP. ERIC

ChairmanCommittee1IDGo ernmentReorganization

THE HONORABLETHE SPEAK ERHOUSE OF REPRESENTATIVESQuezon City


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Republic of thePhilippinesHOUSE OF REPRESENTATIVES

Quezon City

FOURTEENTH CONGRESSFirst Regular Session

HOUSE BILL NO. __ 3 _ 1 _ 5 _ 6 _

(In substitution ofHB No. 152, HB No. 246, &HB 3046)

Introduced by Representatives Juan Edgardo M. Angara, Manuel "Way Kurat" E. Zamora,and Monico O. Puentevella, Eleandro Jesus F. Madrona, Erico Basilio A. Fabian, Felix R.Alfelor Jf., Edcel C. Lagman, and the members of the Committees on Transportation,

Government Reorganization, Government Enterprises &Privatization and Appropriations

AN ACT

CREATING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES,AUTHORIZING THE APPROPRIATION OF FUNDS THEREFORE, AND FOR

OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congressassembled:

CHAPTER I

GENERAL PROVISIONS

1 SECTION 1. Short Title. - This Act shall be known as the Civil Aviation Authority

2 Act of2008.

3 SEe. 2. Declaration of Policy. - It is hereby declared the policy of the state to

4 provide safe and efficient air transport and regulatory services in the Philippines by providing

5 for the creation of a civil aviation authority with jurisdiction over the restructuring of the civil

6 aviation system, the promotion, development and regulation of the technical, operational,

7 safety, and aviation security functions under the civil aviation authority.


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1 (1) "Aerial Work" refers to an aircraft operation in which an aircraft is used for

2 specialized services such as agriculture, construction, photography, surveymg,

3 observation and patrol, search and rescue, aerial advertisement, etc.

4 (2) "Aerodrome" refers to an airport, a defined area on land or water (including any

5 buildings, installations and equipment) intended to be used either wholly or in part for the

6 arrival, departure and surface movement of aircraft.

7 (3) "Aeronautics or Aviation" refers to the science and art of flight

8 (4) "Aeronautical telecommunication" refers to and includes any telegraph or

9 telephone communication signs, signals, writings images and sounds of any nature, by wire,

10 radio or other systems or processes of signaling, used in the aeronautical service.

11 (5) "Aeronautical telecommunication station" refers to any station operated to provide

12 telecommunications for aeronautical purposes.

13 (6) "Air carrier or Operator" refers to a person who undertakes, whether directly or

14 indirectly, or by a lease or any other arrangements, to engage in air transportation services or

15 air commerce. The term may likewise refer to either a "Philippine air carrier" or a "foreign air

16 carrier" as indicated by the context.

17 (7) "Air commerce or Commercial Air Transport Operation" refers to and includes

18 scheduled or non-scheduled air transport services for payor hire, the navigation of aircraft in

19 furtherance of a business, the navigation of aircraft from one place to another for operation in

20 the conduct of a business, or an aircraft operation involving the transport of passengers, cargo

21 or mail for remuneration or hire.

22 (8) "Aircraft" refers to any machine that can derive support in the atmosphere from

23 the reactions of the air other than the reactions of the air against the earth's surface. The term

24 "aircraft," when used in this Act or in regulations issued under this Act, shall refer to civil

25 aircraft only, and will not include state or public aircraft.

26 (9) "Aircraft Accident' refers to an occurrence associated with the operation of an

27 aircraft which takes place between the time any person boards the aircraft with the intention of

28 flight until such time as all such persons have disembarked, in which:

29 a. Any person suffers death or serious injury as a result of being in or upon the

30 aircraft or by direct contact with the aircraft of anything attached thereto; or

31 b. The aircraft receives substantial damage.


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1 (10) "Aircraft Radio Station" refers to a radio station on board any aircraft.

2 (11) "Aircraft engine" refers to any engine use, or intended to be used, for

3 propulsion of aircraft and includes all parts, appurtenances, and accessories thereof other than

4 propellers.

5 (12) "Aircraft Incident" refers to the occurrence, other than an accident, which is

6 associated with the operation of an aircraft when the safety of the aircraft has been

7 endangered, or is a situation which could endanger an aircraft and if it occurred again in other

8 circumstances.

9 (13) "Aircraft piracy" refers to any actual or attempted seizure or exercise of

10 control, by force or violence, or by any other form of intimidation, with wrongful intent, of an

11 aircraft within the jurisdiction of the Philippines.

12 (14) "Airman" refers to any individual who engages, as the person in command or

13 as pilot, mechanic, aeronautical engineer, flight radio operator or member of the crew, in the

14 navigation of aircraft while under way and any individual who is directly in charge of

15 inspection, maintenance, overhauling, or repair of aircraft, aircraft engine, propellers, or

16 appliances; and individual who serves in the capacity of aircraft dispatcher or air traffic

17 control operator.

18 (15) "Airman License" refers to a written authorization or permission issued to any

19 person for the exercise of the privileges of flying, maintaining, controlling, directing,

20 dispatching, instructing or any other civil aviation activity which is regulated and supervised

21 by the Authority.

22 (16) "Air Navigation" refers to the practice of controlling, guiding and operating

23 aircraft from airport of departure to pre-determined airport of destination, including alternate

24 airports. To ensure safety, regularity and efficiency of civil aviation operations,

25 standardization and common understanding among all parties involved are essential in all

26 matters affecting the operation of aircraft and the numerous facilities and services required in27 their support, such as airports, telecommunications, navigation aids, meteorology, air traffic

28 services, search and rescue, aeronautical information services and aeronautical charts, in

29 accordance with the procedures, rules and regulations contained in the appropriate Annexes to

30 the Chicago Convention.

31 (17) "Air Navigation facility" refers to any facility used in, available for use in, or

32 designed for use in aid of air navigation, including airports, landing areas, lights, any


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1 apparatus or equipment for disseminating weather information, for signaling, for radio

2 directional finding, or for radio or other electromagnetic communication, and any other

3 structure or mechanism having a similar purpose for guiding or controlling flight in the air or

4 the landing and take-off of aircraft.

5 (18) "Air Navigation Services" refers to and includes information, directions and

6 other facilities furnished, issued or provided in connection with the navigation or movement

7 of aircraft, and the control of movement of vehicles in any part of an airport used for the

8 movement of aircraft.

9 (19) "Air Operator" refers to any organization which undertakes to engage In

10 domestic commercial air transport or international commercial air transport, whether directly

11 or indirectly or by a lease or any other arrangement.

12 (20) "Air Operator Certificate (AOC)" refers to a certificate authorizing an

13 operator to carry out specified commercial air transport operations.

14 (21) "Air Route" refers to the navigable airspace between two points and the terrain

15 beneath such airspace identified, to the extent necessary, for application of flight rules.

16 (22) "Air Route and Airway Facilities" refers to facilities provided to pennit safe

17 navigation of aircraft within the airspace of air routes and airways, including:

18 (a) Visual and non-visual aids along the air routes and airways;

19 (b) Visual and non-visual aids to approach and landing at airports;

20 (c) Communication services;

21 (d) Meteorological observations;

22 (e) Air traffic control services and facilities; and

23 (f) Flight services and facilities

24 (23) "Airport" refers to any area of land or water designed, equipped, set apart or

25 commonly used for affording facilities for the landing and departure of aircraft and includes26 any area or space, whether on the ground, on the roof of a building or elsewhere, which is

27 designed, equipped or set apart for affording facilities for the landing and departure of aircraft

28 capable of descending or climbing vertically.

29 (24) "Air Transport" refers to the transportation of persons, property, mail or cargo

30 by aircraft


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1 (25) "Air Transport Service" refers to the act of transporting persons, property, mail

2 cargo, in whole or in part, by aircraft to points within or outside of the Philippines.

3 (26) "Airworthiness" means that an aircraft, its engines, propellers, and other

4 components and accessories, are of proper design and construction, and are safe for air

5 navigation purposes such design and construction being consistent with accepted engineering

6 practice and in accordance with aerodynamic laws and aircraft science.

7 (27) "Annexes to the Chicago Convention" refers to the documents issued by the

8 International Civil Aviation Organization (ICAO) containing the Standards and

9 Recommended Practices applicable to civil aviation.

10 (28) "Appliances" refers to instruments, equipment, apparatus, parts, appurtenances,

11 or accessories, of whatever description, which are used, or are capable of being or intended to

12 be used, in the navigation, operation, or control of aircraft in flight (including parachutes and

13 including communication equipment and any other mechanism or mechanisms installed in or

14 attached to aircraft during flight), and which are not part or parts of aircraft, aircraft engines,

15 or propellers.

16 (29) "Authority" refers to the Philippine Civil Aviation Authority created pursuant to

17 the provisions of this Act and shall, as indicated by the context, include the Board of

18 Directors and/or Director General created pursuant thereto.

19 (30) "Aviation Certificate" means any airworthiness certificate, airman certificate, air

20 operator certificate, certificate authorizing the operation of an aviation school or approved

21 maintenance organization or other document issued by virtue of the provisions of this Act in

22 respect of any person, aircraft, airport or aviation related service.

23 (31) "Board of Directors" means the board of the Civil Aviation Authority created

24 under this Act.

25 (32) "Chicago Convention" refers to the international basis for civil aviation

26 agreements.

27 (33) "Citizen of the Philippines" refers to one of the following:

(i) An individual who is a citizen of the Philippines;

(ii) A partnership of which each member is a citizen of the Philippines; or


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1 (iii) A corporation or association created or organized and authorized under the laws

2 of the Philippines.

3 (34) "Civil aircraft" refers to any aircraft other than a state or public aircraft.

4 (35) "Civil aviation" refers to the operation of any civil aircraft for the purpose of5 general aviation operations, aerial work or commercial air transport operations.

6 (36) "Crew Member" refers to a person assigned to perform duties on an aircraft in

7 flight.

8 (37) "Dangerous goods" refers to articles or substances that are capable of posing

9 significant risks to health or safety of property when transported by air.

10 (38) "Director" refers to the Director General appointed under this Act.

11 (39) "Domestic air commerce" means and includes air commercewithin the limits of the

12 Philippineterritory.

13 (40) "Domestic air transport" means air transportation within the limits of the Philippine

14 territory

15 (41) "Foreign Air Carrier or Foreign Air Operator" means any operator, not being a

16 Philippines air operator, which undertakes, whether directly or indirectly or by lease or any

17 other arrangement, to engage in commercial air transport operations within borders or airspace

18 of the Philippines, whether on a scheduled or chartered basis.

19 (42) "Foreign air transport" refers to air transportation between the Philippines and

20 any place outside it, or wholly outside the Philippines.

21 (43) "General aviation operation" refers to an aircraft operation of a civil aircraft for

22 other than a commercial air transport operation or aerial work operation.

23 (44) "ICAD" Where used in this Act, refers to the abbreviation for the International

24 Civil Aviation Organization.

25 (45) "Intemational commercial air transport" refers to the carriage by aircraft of

26 persons or property for remuneration or hire or the carriage of mail between any two or more

27 countries.


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1 (46) "Navigable airspace" refers to the airspace above the minimum altitudes of

2 flight prescribed by regulations under this Act and includes airspace needed to insure safety in

3 the take-off and landing of aircraft.

4 (47) "Navigation of aircraft" refers to a function that includes the piloting of aircraft.

5 (48) "Person" refers to any individual, firm, partnership, corporation, company,

6 association, joint-stock association, or body politic, and includes any trustee, receiver,

7 assignee, or other similar representative of these entities.

9 (50) "Philippine aircraft" means an aircraft registered in the Philippines in accordance with

10 the requirementsof this Act.

11 (51) "Propeller" refers to an inclusive term for all parts, appurtenances, and12 accessories of a propeller.

13 (52) "Public aircraft" refers to an aircraft used exclusively in the service of any

14 government or of any political jurisdiction thereof, including the Government of the

15 Philippines, but not including any government owned aircraft engaged in operations which

16 meet the definition of commercial air transport operations.

17 (53) "Rules of the Air" means those provisions for securing the safety of aircraft in

18 flight and in movement on the surface and the safety of persons and property on the surface.19 These provisions include:

(a)

(b)

(c)

(d)

24 (54) "Spare parts" refers to any parts, appurtenances, and accessories of aircraft (other

25 then aircraft engines and propellers), aircraft engines (other than propellers), propellers, and

26 appliances, maintained for installation or use in an aircraft, aircraft engine, propeller, or

27 appliance, but which at the time are not installed therein or attached thereto.


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1 (i) Civil aircraft of the Philippines; and

2 (ii) Any other aircraft within the jurisdiction of the Philippines,

3 while the aircraft is in flight, which is from the moment when all external doors

4 are closed following embarkation until the moment when one such door is opened

5 for disembarkation or, in case of a forced landing, until the competent authorities

6 take over the responsibility of the aircraft and the persons and property aboard.

7 (56) "Validation" refers to the written acceptance of an action ofthe civil aviation

8 authority of another country in lieu of an action that this Act assigns to the Director General.

9 (57)" Landingfees" refer to all charges for the use of any landing strip or runway by

10 any aircraft landing or taking off at an aerodrome.

11 (58) "Terminalfees" refer to charges for parking at or near the ramp, terminal area, or

12 building, for purposes ofloading or unloading passengers and/or cargo.

13 (59) "Royalties" refer to all charges based on gross business or sales, or gross or net

14 profit.

15 (60) "Supplies" include any and all items of whatever nature or description which may

16 be necessary for, or incidental to, the operation of an aircraft.

17

18 CHAPTER II

19 ORGANIZATION OF AUTHORITY

20 SEC. 4. Creation of the Authority. - There is hereby created an independent

21 regulatory body with quasi-judicial and quasi-legislative powers and possessing corporate

22 attributes to be known as the Civil Aviation Authority of the Philippines (CAAP), hereinafter

23 referred to as the "Authority," attached to the Department of Transportation and

24 Communications (DOTC) for the purpose of policy coordination. For this purpose the existing

25 Air Transportation Office created under the provisions of the Republic Act 776 as amended is

26 hereby abolished.

27 (a) Establishment of Authority Headed by a Director General - The Authority shall be

28 headed by a Director General of Civil Aviation, referred to in this Act as the "Director", who

29 shall be appointed by the President of the Philippines and shall be responsible for all civil

30 aviation in the Philippines and the administration of this Act. The Director shall be appointed

31 based on the qualifications herein provided and shall have a tenure of office for a period of

32 three (3) years. His appointment may be extended for another non-extendible term of three (3)


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1 years and shall only be removed for cause in accordance with the rules and regulations

2 prescribed by theCivil ServiceCommission.

3 (b) Responsibility of Director General - The Director shall be responsible for the

4 exercise of all powers and the discharge of all duties of the Authority and shall have control

5 over all personnel and activitiesof theAuthority.

6 SEC. 5. Composition of the Board Members. -Thecorporatepowersof theAuthority

7 shall bevested in aBoard, which is composedof seven(7) members:

8 (a) TheSecretary of the Department of Transportation and Communications shall act

9 as Chairmanex-officio;

10 (b) The Director General of Civil Aviation (DGCA) who shall automatically be the

11 ViceChairman of theBoard.

12 (c) The Secretaryof Finance.

13 (d) The Secretary of Foreign Affairs.

14 (e) The Secretaryof J ustice.

15 (t)The Secretaryof Interior andLocal Government

16 (g) A representative, from private sector, with at least five (5) years significant

17 experience in the national civil aviation industry, who must be a Filipino citizen, of good

18 moral character, unquestionable integrity and who shall be appointed by the President of the

19 Philippines to hold officefor aperiodof three(3) years.20 The Directors listed under subsections (a) to (t) shall be ex-officio members of the

21 Board of Directors~Provided, that, inthe absenceof the Director appointed in subsections (c)

22 to (t), the Director concerned shall designatetheofficer next in rank to him in his department

23 or officeto acton his behalf as aDirector.

24 SEe. 6. Prohibited Interests. - All members of the Board or any of their relatives

25 within the fourth civil degreeof consanguinity or affinity, legitimateor common law, shall be

26 prohibited from holding any interest whatsoever, either as investor, stockholder, officer or27 director, in any company or entity engaged in air commerce, whether scheduled or

28 unscheduled, passenger or cargo, domestic or international, or in any business providing

29 support services to persons engaged in air commerce (i.e. general sales agencies, travel

30 agencies, cargo forwarders, ground handling. catering. fuel servicing, aircraft maintenance,

31 etc.) and must therefore divest, through sale or legal disposition, of any and all interests in

32 suchundertakings uponthe member's assumptionof office. Any violation of this sectionshall


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1 subject the member concerned to removal from Authority for cause as well as administrative,

2 civil or criminal prosecution under applicable laws.

3 SEe. 7. Limitation of Subsequent Employment. - No member of the Board or any

4 employee of the Authority shall accept employment or enter into a contract of service with an

5 entity regulated by the Authority, until the expiry of one (1) year from the termination of his

6 appointment whether by resignation or revocation or otherwise.

7 SEe. 8. Quorum. - The presence of at least four (4) members of the Board shall

8 constitute a quorum and the majority vote of three (3) members in a meeting where a quorum

9 is present shall be necessary for the adoption of any rule, ruling, order, resolution, decision or

10 other act of the Board in the exercise of its functions.

11 SEe. 9. Qualifications of Director General. - No person shall be appointed or

12 designated as a Director General unless he is a Filipino citizen, at least thirty five (35) years of

13 age, of good moral character, unquestionable integrity, recognized competence and a degree

14 holder with at least five (5) years supervisory or management experience in the field of

15 aviation.

16 SEe. 10. Board of Directors. - The powers and functions of the Authority shall be

17 vested in and exercised by, a Board of Directors, which are as follows:

18 (a) Provide comprehensive policy guidance for the promotion and development of the

19 aviation industry as provided in this Act;

21 (c) Ensure that the Authority performs its functions in a proper, efficient, and effective

22 manner;

23 (d) Determine the organizational structure of the Authority, establish a human

24 resources management system based on merit and fitness, and adopt a rational compensation

25 and benefits scheme;

26 (e) Approve the annual and supplementary budget;

27 (f) Submit an annual report to the President of the Philippines and the Congress.

28 SEe. 11. Board Meetings. - The Board shall meet regularly once a month and may

29 hold special meetings to consider urgent matters upon call of the Chairman or any four (4)


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1 members. Internal rules of procedure in the conduct of Board meetings shall be as prescribed

2 by the Board.

3 SEC. 12. Per Diems. - The Members of the Board shall receive aper diem for each

4 meeting actually attended. The per diems of the members of the Board shall be determined

5 pursuant to a resolution adopted by the Board subject to compliance of the guidelines duly

6 existing and applicable by the Commission on Audit.

7 SEe. 13.Personnel. - Qualified existing personnel of ATO shall be given preference

8 in the filling up of plantilla positions created in the Authority, subject to existing civil service

9 rules and regulations.

10 SEC. 14. Principal Office. - The Authority shall have its principal office in Metro

11 Manila and may hold hearings on any proceedings at such time and places within the

12 Philippines, as it may provide by order in writing.

13 SEC. 15. Capitalization - The Authority shall have an authorized capital stock of

14 Fifty Billion Pesos (PhP 50,000,000,000.00) which shall be fully subscribed by the Republic

15 of the Philippines. The subscription of the National Government shall be paid as follows:

16 (a) The unexpended balances of appropriations in the current General Appropriations

17 Act, and other acts in force upon approval hereof, pertaining to, held or used by, the Air

18 Transportation Office (ATO);

19 (b) The value of existing assets of the Air Transportation Office (ATO), which shall be

20 determined by an independent and qualified appraiser or appraisers within six (6) months

21 from the effectivity of this Act, and after deducting the loans and other liabilities of the ATO

22 at the time of the takeover of the assets and properties; and

23 (c) Such amounts as may be appropriated from time to time from the funds of the

24 National Treasury, including any outlay from the infrastructure program of the National

25 Government.

26 SEe. 16. Fiscal Autonomy. - The Authority shall enjoy fiscal autonomy. All moneys

27 earned by the Authority from the collectionllevy of any and all such fees, charges, dues,

28 assessments and fines it is empowered to collectJlevy under this Act shall be used solely to

29 fund the operations of the Authority.

30 SEe. 17. Schedule of Fees and Charges. - The Authority shall adopt and publish its

31 schedule of fees and charges. The Authority shall hold such public hearings or consultative


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1 meetings, with stakeholders in the industry before adopting its schedule of fees and charges.

2 The Authority shall not revise its schedule of fees and fines more often than once every three

3 (3) years.

4 SEe. 18. Compensation and Other Emoluments of Authority Personnel. - Within six

5 (6) months from effectivity of this Act, the Board shall determine the new schedule of salaries

6 of the employees of the Authority subject to compliance with the existing compensation laws.

7 SEC. 19. Tr~er of Properties. - The funds and appropriations, records, equipment,

8 and property of ATO is hereby transferred to the Authority.

9 SEC. 20. Annual Report. - The Authority shall prepare and submit an annual report to

10 the President of the Philippines, copy furnished to the Congress, on its accomplishments at the

11 close of each calendar year.

12 CHAPTER III

13 GENERAL POLICIES

14 SEC. 21. Policies. - In the exercise and performance of its power and duties under this

15 Act, the Authority shall consider the following, among other things, as being in the public

16 interest, and in accordance with the public convenience and necessity:

18 (b) The encouragement and development of an air transportation system properly

19 adapted to the present and future of foreign and domestic commerce of the

20 Philippines;

21 (c) The regulation of air transportation in such manner as to support sound economic

22 condition in such transportation and to improve the relations between air carrier;

23 (d) Ensuring the safety, quality, reliability, and affordability of air transport services

24 for the riding public;

25 (e) The encouragement and development of a viable and globally competitive

26 Philippine aviation industry.

CHAPTER IV

POWERS OF THE AUTHORnY


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1 SEC. 22. PflWers and Functions. - The Authority shall have such powers as are

2 granted to the Board and the Director under the provisions of this Act.

3 SEC. 23. Corporate Powers. - The Authority, acting through the Board, shall have

4 the following corporate powers:

5 (a) To succeed in its corporate name, to sue and be sued in such corporate name, and

6 to adopt, use and alter its corporate seal, which shall bejudicially noticed~

8 (c) To enter into, make, perform, and carry out contracts of every class, kind and

9 description, which are necessary or incidental to the realization of its purposes, with any

10 person, domestic or foreign private firm, or corporation, local or national government office,

11 agency, and with international institutions, or foreign government~

12 (d) To raise money, contract loans, indebtedness, credit and issue commercial papers

13 and bonds, in any local or convertible foreign currency from any other international financial

14 institutions under terms and conditions prescribed by law, rules, and regulations. ;

15 (e) To execute any deed of guarantee, mortgage, pledge, trust or assignment of any

16 property for the purpose of financing the programs and projects deemed vital for the

17 attainment of its goals and objectives~

18 (f)To construct, acquire, own, hold, operate, maintain, administer, and lease personal

19 and real properties, including buildings, machinery, equipment, other infrastructure,

20 agricultural lands, and its improvements, property rights, and interest therein, and to

21 encumber, mortgage, dispose, sell, or alienate or otherwise dispose the same at the fair market

22 value it may deem appropriate~ to lease its plant, machinery, equipment or goods not

23 immediately required by it. Provided that, no real property thus acquired and any other real

24 property shall be sold without the approval of the President of the Philippines.

25 (g) To receive gifts, donations, grants, bequests, services, properties, whether personal

26 or real, and assistance of all kinds, from private and public sources, firms, institutions,

27 domestic and foreign governments, and international institutions, and utilize the same for the

28 purposes set forth in this Act.

29 (h) To invest its funds and other assets in such areas, ventures, and projects as it may

30 deem wise~


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1 (i) To settle under such terms and conditions most advantageous to it, any claim by or

2 against it;

3 G ) To determine and keep its own system of accounts following generally accepted

4 principles of accounting, as well as the forms and contents of its contracts and other business

5 documents;

6 (k) To perform such other acts, as are necessary or convenient in connection with the

7 performance of its functions, to carry out the purposes of this Act.

10 SEC. 24. Powers of the Board. - The Board shall have the following general powers:

11 (a) Provide comprehensive policy guidance for the promotion and development of the

12 Philippine aviation industry, as provided for in this Act

13 (b) Ensure that the Authority performs its functions in a proper, efficient and effective

14 manner.

15 (c) Decide the objectives, strategies, and policies of the Authority in accordance with

16 the provisions of this Act

17 (d) Determine the organizational structure of the Authority in accordance with the

18 provisions of this Act, establish a human resources management system based on merit and

19 fitness, and adopt a rational compensation and benefits scheme

20 (e) Exercise appellate powers on any decisions, findings and rulings of the Director, to

21 Issue subpoena ad testificandum or subpoena duces tecum requiring the attendance and

22 testimony of witnesses in any matter or inquiry pending before the Board and require the

23 production of books, papers, contracts, agreements and all other documents submitted for

24 purposes of this section to be under oath and verified by the person in custody thereof as to

25 the truth and correctness of data appearing in such books, papers, tariffs, contracts,

26 agreements and all other documents.

27 (f) Exercise appellate powers to order the taking of depositions in any proceeding, or

28 investigation, pending before the Board at any stage of such proceeding or investigation.

29 (g) y6{JIse available services, equipment, personnel and facilities of other agencies of

30 the Philippine Government, on a reimbursable basis when appropriate, and, on a similar basis,

31 to co-operate with those agencies in the establishment and use of services, equipment and

32 facilities of the Authority.


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1 (h) Use the property of the Authority in such a manner as may appear to the Authority

2 to be requisite, advantageous or convenient with a view to making the best use of any of the

3 property of the Authority in relation to its functions under this Act .

4 (i) Invest such of the Authority's funds that are not immediately required for

5 operating expenses, or other immediate obligations in any business venture the Board may

6 deem appropriate, or in such secured note, government securities, and other negotiable

7 instruments that satisfy the guidelines prescribed by the Board. Funds of the Authority shall

8 be deposited in such commercial and universal banks as the Board may determine, subject to

9 the requirements of existing laws. The Board shall designate the officials authorized to deposit

10 in or withdraw funds from such depository banks.

11 G ) Promulgate rules and regulations as may be necessary in the interest of safety in

12 air commerce pertaining to the issuance of the airman's certificate including licensing of

13 operating and mechanical personnel, type certificate for aircraft, aircraft engines, propellers

14 and appliances, airworthiness certificate, air carrier operating certificate, air agency certificate,

15 navigation facility and aerodrome certificate; air traffic routes; radio and aeronautical

16 telecommunications and air navigation aids; aircraft accident inquiry; aerodromes, both public

17 and private owned; construction of obstructions to aerodromes; height of buildings; antennae

18 and other edifices; registration of aircraft; search and rescue; facilitation of air transport;

19 operations of aircraft, both for domestic and international, including scheduled and non-

20 scheduled; meteorology in relation to civil aviation; rules of the air; air traffic services; rules

21 for prevention of collision of aircraft; identification of aircraft; rules for safe altitudes of

22 flight; and such other rules, and regulations, standards, governing other practices, methods,

23 procedures as the Director may find necessary and appropriate to provide adequately for

24 safety regularity and efficiency in air commerce and air navigation.

25 (k) Impose and fix reasonable charges and fees for the use of government aerodromes

26 or aIr navigation facilities; for services rendered by the Authority in the rating of any

27 aerodrome or air navigation facilities, civil aviation schools and instructors, aircraft repair

28 stations, and aircraft radio and aeronautical telecommunications stations.

29 (I) Fix the reasonable charges to be imposed in the use of privately owned aIr

30 navigation facilities and aerodromes.

31 (m) Adopt a system for registration of aircraft as hereinafter provided.

32 (n) Determine and fix, landing fees, parking space fees, royalties on sales or

33 deliveries, direct or indirect, to any aircraft for its use of aviation gasoline, oil and lubricants,


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1 spare parts, accessories, and supplies, tools, other royalties, fees or rentals for the use of any

2 of the property under its management and control.

3 (0) Approve the annual and supplementary budget plan for utilization of retained

4 revenue.

6 (q) Upon its own initiative or the recommendation of the Director or an application of

7 a private person, grant exemption from the requirements of observing rules or regulations

8 issued in accordance with this Act, provided that said grant of exemption is not prejudicial to

9 flight safety.

10 (r) Formulate rules and regulations concerning compliance of the carrier and the

11 public for the safe transport of goods and materials by air pursuant to International Standards

12 or Annexes to the Chicago Convention

13 (s) I n coordination with the appropriate government agency tasked to provide airport

14 security, shall:

15 (1) Prescribe reasonable regulation requiring that all passengers and all property

16 intended to be carried in the aircraft cabin in commercial air transport be screened by weapon

17 detecting procedure or facilities employed or operated by employees or agents of the air

18 operator or foreign air operator prior to boarding the aircraft for such transportation;

19 2.) Prescribe such other reasonable rules and regulations requiring such parties,

20 methods, and procedures as the Director may find necessary to protect persons and property

21 aboard aircraft operating in commercial air transport against acts of criminal violence and

22 aircraft piracy.

23 3.) To the extent practicable, require uniform procedures for the inspection, detention,

24 and search of persons and property in domestic commercial air transport and international

25 commercial air transport to assure their safety and to assure that they will receive courteous

26 and efficient treatment by air operators and their agents and employees.


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1 SEC. 25. Issuance of Rules and Regulations. - The Board, in consultation with the

2 Director General, shall issue and provide for the enforcement of such orders, rules and

3 regulations as may be necessary to give effect to the provisions of this Act. All rules and

4 regulations issued in accordance with the provisions of this Act shall be formally promulgated

5 and periodically reviewed and updated in accordance with the requirements of the

6 Administrative Code of the Philippines or any amendment or successor thereto and the

7 International Civil Aviation Organization Standards and Recommended Practices. Pending the

8 promulgation of such new rules and regulations, the current rules and regulations of ATO

9 shall continue to apply.

10 SEC. 26.Setting of Charges and Fees. - The Board, in consultation with the Director

11 shall determine, fix, impose, collect or receive reasonable charges, fees, dues or assessments

12 in respect of aviation certificates, licenses and all other authorizations or permissions

13 authorized to be issued under this Act and all services performed by the Authority. All

14 charges and fees shall be formally promulgated in accordance with the requirements of the

15 Administrative Code of the Philippines or any amendment or successor thereto. Pending the

16 promulgation of such new schedule of charges and fees, the current charges and fees of ATO

17 shall continue to apply.

18 SEe. 27. Issuance of Rules of Procedure and Practice. - The Board may authorize

19 the Director to issue or amend rules of practice and procedures as may be required to be

20 issued pursuant to the provisions of this Act or issue and adapt rules and regulations and other

21 issuances of the ICA O. Pending the promulgation of such new rules of procedures and

22 practice, current rules of procedures and practices of ATO shall continue to apply

23 SEe. 28.Original Powers. - Upon written petition by an interested party, the Board

24 may, in the exercise of original powers, hear cases of national importance at the first

25 instance. The Board shall, by regulation, set-forth such cases which may be brought directly

26 before the Board.

27 SEe. 29. Appellate Powers.- The Board, on an appeal properly taken by an

28 interested party from a decision, judgment or order of a Director, shall have the power to:


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1 (b) Confirm, remit, mitigate, increase, or compromise, as the case may be, fines

2 imposed by the Director pursuant with the provisions of this Act.

3 (c) Review, confirm, modify, revise, amend or reverse, as the case may be,

4 impositions by the Director of liens on personal and real properties of entities, persons,

5 corporations or partnerships in default, or those who have failed to perform their obligations

6 pursuant to rules and regulations promulgated under this Act, or those who shall have failed

7 to pay the fines or other pecuniary penalties for violation thereof.

8 In no case that the Director shall participate in the hearing and adjudication of an

9 appealed case before the Board where the subject of Appeal is a judgment or decision

10 rendered by his Office. In such case, it requires four (4) concurring votes of the members of

11 the Board who actively participated in the deliberation of the appealed case before the

12 judgment or decision of the Director can be modified or reversed.

13 SEC. 30. Power to Administer Oaths. - The members of the Board, the Director and

14 such other duly designated officers of the Authority shall have the authority to administer

15 oaths in the transaction and performance of their official duties.

16 SEe. 31. Annual Budget. - The Board shaH adopt an annual Budget to fund the

17 operations of the Authority.

19 (a) Delegation to Officers, Employees, and Administrative Units of Authority. The

20 Director General may, subject to such regulations, supervision, and review as may be

21 prescribed, authorize the performance by any officer, employee, or administrative unit under

22 the Director General's jurisdiction of any function under this Act.

23 (b) Delegation to Private Persons. The Director, in accordance with the policy

24 guidelines prescribed by the Board, is authorized to delegate any assigned powers and duties

25 to any properly qualified private person subject to his continuing supervision, regulation, and

26 review as may be prescribed. However, the Director shall ensure that such functions are not

27 delegated in such a way that air operators, aerial work or general aviation operators and

28 maintenance facilities, in effect, regulate themselves.

29 SEC. 33. Limitation of Powers. - The Board shall not exercise any power or function

30 not otherwise expressly granted to it under this Act, neither shall the Board exercise, in the


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1 first instance, any power or function that property falls within the authority, jurisdiction,

2 powers or functions of the Director.

3 CHAPTER VI

4 THE AUTHORITY PROPER

5 SEC. 34. Organizational Strocture of the Authority. - Within fifteen (15) days from

6 the appointment of and acceptance by all members of the Board and the Director Generals

7 of their respective appointment, the Board, in consultation with the Director General, shall

8 meet to draw-up the Authority's organizational structure. The Board shall agree on the

9 Authority's final organizational structure not later than six (6) months from the date of

10 effectivity of this Act.

11 In addition to the offices created under Sections 37 and 41 of this Act, the Board

12 shall establish the following permanent offices:

13 (a) Air Traffic Service

14 (b) Air Navigation Service

15 (c) Aerodrome Development and Management Service

16 (d) Administrative and Finance Service

17 The Board may agree for the viability for the creation of additional offices and the

18 finalization of the organizational structure not later than six (6) months from the date of

19 effectivity of this Act.

20 Notwithstanding the qualification standards as may be prescribed by the Board and

21 the Civil Service Commission, the selection and appointment of the heads of the foregoing

22 offices shall be limited fromthe rank and fileemployees ofthe concerned services.

23 SEC. 35. Training Schools.

24 (a) Authority to Operate. The Director may conduct a school or schools for the

25 purpose of training employees of the Authority in those subjects necessary for the proper

26 performance of all authorized functions of the Authority. The Director also may authorize

27 attendance of courses given in such schools by other governmental personnel and personnel of

28 foreign governments, or personnel of theaeronautical industry.


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1 (b) Offset of Training Costs. The Director is hereby authorized, where appropriate, to

2 require payment of appropriate consideration to offset the costs of training provided by such

3 school or schools.

4 CHAPTER VII

5 THE DIRECTOR GENERAL

6 SEC. 36. Powers and Functions of the Director General. - The Director General shall

7 be the Chief Executive and Operating Officer of the Authority. He shall have the following

8 powers, duties and responsibilities:

9 (1) To carry out the purposes and policies established in this Act; to enforce the

10 provisions of the rules and regulations issued in pursuance to said Act; and he shall primarily

11 be vested with authority to take charge of the technical and operational phase of civil aviation

12 matters.13 (2) To designate and establish civil airways, to acquire, control, operate and maintain

14 along such airways, navigation facilities and to chart such airways and arrange for their

15 publication including the aeronautical charts or maps required by the international

16 aeronautical agencies by utilizing the equipment, supplies or assistance of existing agencies of

17 the government as far as practicable.

18 (3) To issue airman's certificate specifying the capacity in which the holder thereof is

19 authorized to serve as airman in connection with aircraft and shall be issued only upon the

20 finding that the applicant is properly qualified and physically able to perform the duties of the

21 position. The certificate shall contain such terms, conditions and limitations as the Director

22 may determine to be necessary to assure safety in air commerce: Provided, however, that the

23 airman's license shall be issued only to qualified persons who are citizens of the Philippines or

24 qualified citizens of countries granting similar rights and privileges to citizens of the

25 Philippines.

26 (4) To issue airworthiness certificate for aircraft which shall prescribe the duration of

27 such certificate, the type of service for which the aircraft may be used, and such other terms28 and conditions and limitations as are required.

29 (5) To issue air carrier operating certificate in accordance with the minimum safety

30 standards for the operation of the air carrier to whom such certificate is issued. The air carrier

31 operating certificate shall be issued only to aircrafts registered under the provisions of this

32 Act.

33 (6) To issue type certificate for aircraft, aircraft engine, propellers and appliances.


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1 (7) To inspect, classify and rate any air navigation facilities and aerodromes available

2 for the use of aircraft as to its suitability for such use and to issue a certificate for such air

3 navigation facility and aerodrome~ and to determine the suitability of foreign aerodromes, air

4 navigation facilities as well as air routes to be used prior to the operation of Philippine

5 registered aircraft in foreign air transportation and from time to time thereafter as may be

6 required in the interest of safety in air commerce.

7 (8) To issue certificates of persons or civil aviation schools giving instruction in

8 flying, repair stations, and other air agencies and provide for the examination and rating

9 thereof

10 (9) To provide for the enforcement of the rules and regulations issued under the

11 provisions of this Act and to conduct investigation for violations thereto. In undertaking such

12 investigation, to require by subpoena ad testificandum or subpoena duces tecum, the

13 attendance and testimony of witness, the production of books, papers, documents, exhibits

14 matter, evidence, or the taking of depositions before any person authorized to administer oath.

15 Refusal to submit the reasonable requirements of the investigation committee shall be

16 punishable in accordance with the provisions of this Act.

17 (10) To collect and disseminate information relative to civil aeronautics and the

18 development of air commerce and the aeronautical industry; to exchange with foreign

19 governments, information pertaining to civil aeronautics~ and to provide for direct

20 communication on all matters relating to the technical or operational phase of aeronautics with

21 international aeronautical agencies.

22 (11) To acquire and operate such aircraft as may be necessary to execute the duties

23 and functions of the Authority prescribed in this Act.

24 (12) To plan, design, acquire, establish, construct, operate, improve, maintain, and

25 repair necessary aerodromes and other air navigation facilities.

26 (13) To collect and receive charges and fees for the registration of aircraft and for the

27 issuance and/or renewal of licenses or certificates for aircraft, aircraft engines, propellers and

28 appliances, and airmen as provided in this Act.

29 (14) To impose fines and/or civil penalties in respect thereto.

30 (15) To participate actively with the largest possible degree in the development of

31 international standardization of practices in aviation matters important to safe, expeditious,

32 and easy navigation, and to implement as far as practicable the international standards,

33 recommended practices, and policies adopted by appropriate international aeronautical

34 agenCIes.


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1 (16) To exercise and perform its powers and duties under this Act consistent with any

2 obligation assumed by the Republic of the Philippines in any treaty, convention or agreement

3 on civil aviation matters.

4 (17) To cooperate, assist and coordinate with any research and technical agency of the

5 Government on matters relating to research and technical studies on design, materials,

6 workmanship, construction, performance, maintenance and operation of aircraft, aircraft

7 engines, propellers, appliances, and air navigation facilities including aircraft fuel and oil:

8 Provided, That nothing in this Act shall be construed to authorize the duplication of the

9 laboratory research, activities or technical studies of any existing governmental agency.

10 (18) To designate such prohibited and danger areas, in consonance with the

11 requirements of the international aeronautical agencies and national security.

12 (19) To issue, deny, suspend, cancel or revoke any certificate, license pertaining to

13 aircraft, airmen, and air agencies: Provided, that any order denying, suspending, canceling,

14 revoking the certificate, or license may be appealed to the Board, whose decisions shall be

15 final, within fifteen days from date of notification of such denial, cancellation, or revocation.

16 (20) To grant authorization to civil aircraft or persons to carry instruments or

17 photographic device to be used for aerial photography or taking of pictures by photograph or

18 sketching of any part of the Philippines.

19 (21) Pursuant to a Board Resolution, to enter into, make and execute contracts of any

20 kind with any person, firm, or public or private corporation.

21

23 To effectively implement the civil aviation regulatory, supervisory and administrative

24 mandates of the Director under this Act, a permanent office within the Authority to be known

25 as, the Enforcement and Legal Service, to be composed of in-house counsels of the Authority

26 and its necessary support staff shall be established by the Board.

27 This Office shall provide adequate legal assistance and support to the Director and to

28 the Authority, as a whole, in the exercise of quasi-legislative and quasi-judicial power as

29 provided for under this Act.

30 The exercise of the function by the Director to issue subpoena, ad testificandum,

31 subpoena duces tecum and the imposition of any administrative sanction shall be within the

32 exclusive determination and recommendation of the Enforcement and Legal Service.


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2 (a) Effectiveness of Orders. Except In emergency situations, all orders, rules and

3 regulations of the Director shall take effect within such reasonable times as the Director may

4 prescribe, and shall continue in force until a further order, rule, or regulation, or for a specified

5 period of time, as shall be prescribed in the order, rule, or regulation.

6 (b) Emergencies. Whenever the Director is of the opinion that an emergency requiring

7 immediate action exists with respect to safety in civil aviation, the Director shall have the

8 power, either upon complaint or the Director's initiative without complaint, at once, if the

9 Director so orders, without answer or other form of pleading by the interested person or

10 persons, and with or without notice, hearing, or the making or filing of a report, to make such

11 just and reasonable orders, rules, or regulations as may be essential in the interest of safety in

12 civil aviation to meet such emergency~provided that the Director shall immediately thereafter

13 initiate proceedings relating to the matter giving rise to any such order, rule, or regulation.

14 (c) Suspension and Modification of Orders. The Director shall have the power to

15 suspend or modify orders upon such notice and in such manner as the Director shall find

16 proper

17 (d) Public Compliance. It shall be the duty of every person (along with any agents

18 and employees thereof in the case of entities other than individuals) subject to this Act, to

19 observe and comply with any order, rule, regulation, or certificate issued by the Director

20 under this Act, affecting such person so long as the same shall remain in effect.

21 SEC. 39. Right of Access for Inspection.

22 (a) The Director or his authorized representative shall be authorized access to civil

23 aircraft, including aerodromes, without restriction wherever they are operated within the

24 Philippines for purposes of ensuring that those aircraft are airworthy and being operated in

25 accordance with this Act, regulations issued under this Act, and applicable ICAo Annexes.

26 (b) The Director or his authorized representative shall be authorized access to civil27 aircraft, registered in the Philippines without restriction wherever they are operated in the

28 world for the purposes of ensuring that these aircraft are airworthy and are being operated in

29 accordance with this Act and applicable regulations and directives.

30 (c) The Director or his authorized representative shall be authorized access by the

31 Philippine air operators at any place and any time to conduct any tests or inspections in their


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1 facility or offices in order to determine that those operations are conducted in accordance with

2 this Act and applicable regulations and directives.

3 (d) The Director or his authorized representative shall be authorized access to any

4 aerodromes, whether privately or government owned, to conduct inspections or evaluation of

5 the facilities therein in order to determine that its operations are conducted.

6 SEC. 40. Authority toPrevent Flight.

7 (a) The Director is authorized to direct the operator or airman of a civil aircraft that

8 the aircraft is not to be operated in situations where :

9 (1) The aircraft may not be airworthy; or

10 (2) The airman may not be qualified or physically or mentally capable for the

11 flight; or

12 (3) The operation would cause imminent danger to persons or property on the

13 ground.

14 (b) The Director may take such steps as are necessary to detain such aircraft or airmen.

15 SEC. 41. Creation of Flight Standards Inspectorate Service.

16 The Board, other than the offices it shall create in furtherance of this Act, shall

17 establish a permanent office known as Flight Standards Inspectorate Service (FSIS) that will

18 assist the Director in carrying out the responsibilities of his office for certification and on-

19 going inspections of aircraft, airmen and air operators.

20 The FSIS shall perform the following functions:

21 (a) Airworthiness Inspection

22 (b) Flight Operations Inspection and Evaluation

23 (c) Personnel Licensing

24 Furthermore, the Board shall create, but not limited, the following offices which will

25 provide support to the functions of the Flight Standard Inspectorate Service, namely, Aircraft

26 Registration, Aircraft Engineering and Standards, Airmen Examination Board, and Office of

27 the Flight Surgeon.

28 SEC. 42. Validation. - The Director is authorized, in the discharge of his certification

29 and inspection responsibilities, to validate the actions of the civil authority of another State in

30 lieu of taking the specific action, with the following restrictions:

31 (1) For actions on airman or airworthiness certificates, the other State must be a

32 signatory to the Chicago Convention and be fulfilling its obligations under the Chicago

33 Convention with respect to the issuance and currency of these certificates.


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1 (2) For actions applicable to Air Operators, the Director must exercise discretion and

2 require supporting documents. The Director should ensure that, when validation is based on

3 the actions of another civil aviation authority, there is no information to indicate that the State

4 does not meet its obligations under the Chicago Convention regarding certification and on-

5 going validation of its air operators.

6 SEC. 43. Aircraft Accident Investigation and Inquiry Board. - Pending the

7 establishment of an independent and separate government agency created to conduct

8 investigation of accidents on land, air and water, the Director shall organize an Aircraft

9 Accident Investigation and Inquiry Board (AAII D) to be composed of personnel of the

10 Authority specialized in the various disciplines of civil aviation. The Board shall appoint the

11 head of the AAIm.

12 (a) Reporting Of Accidents -The Board shall promulgate rules and regulations

13 governing the notification and reporting of accidents and incidents involving aircraft.

14 (b) General Authority To Investigate - Except as provided in subsection (c) of this

15 Section, the Director shall have-

16 (1) The power to investigate, or arrange by contract or otherwise for the

17 investigation of, accidents involving aircraft occurring in the Philippines and

18 civil aircraft registered in the Philippines occurring outside the territory of any

19 foreign country for the purpose of determining the facts, conditions, and

20 circumstances relating to each accident and the probable cause thereof.

21 (2) The authority to participate in the investigation of accidents involving

22 aircraft registered in the Philippines occurring outside the territory of a foreign

23 country, consistent with any treaty, convention, agreement, or other arrangement

24 between the Philippines and the country in whose territory the accident occurred.

25 (c) Accident Prevention - The Director shall take any corrective actions which,

26 on the basis of the findings of the accident investigations authorized under this Section,

27 that, in the judgment of the Director, will tend to prevent similar accidents in the future.

28 (d) Investigation Of Accidents Within Military Sites - Notwithstanding any other

29 provision of this Section, and, the investigation of an accident involving aircraft

30 occurring within military sites in the Philippines or an accident involving solely an

31 aircraft of the armed forces of any foreign country occurring in the Philippines shall be

32 the responsibility of the military. For the purpose of this subsection, the term 'military


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1 sites' means those areas within the Philippines which are under the control of the

2 military of the Philippines or the military of another country.

3 (e) Use As Evidence - No part of any report or reports of the Director relating to

4 any accident or the investigation thereof, shall be admitted as evidence or used in any5 suit or action for damages arising out of any matter mentioned in such report or reports

6 except when the criminal liabilities/aspects of the accident is put into issue.

10 (a) Establish and maintain a system for the national registration of aircraft in the

11 Philippines.

12 (b) Establish and maintain a system for the registration of liens, mortgages or other

13 interests in aircraft or aircraft engines.

14 (c) Have sole authority to register aircraft and liens, mortgages or other interests in

15 aircraft or aircraft engines.

16 SEe. 45. Eligibility for Registration. - Except as otherwise provided in the

17 Constitution and existing treaty or treaties, no aircraft shall be eligible for registration

18 unless it is owned by or leased to a citizen or citizens of the Philippines or corporations or

19 associations organized under the laws of the Philippines at least sixty (60) per centum of

20 whose capital is owned by Filipino citizens. That, under such rules and regulations to be

21 promulgated by the Board foreign-owned or registered aircraft may be registered if utilized

22 by members of aero clubs organized for recreation, sport or the development of flying skills

23 as a pre-requisite to any aeronautical activities of such clubs within the Philippine airspace.

24 (RA. 776, P.D. 1278, E.o. 546, B.P. 504).

25 Such certificate shall be conclusive evidence of nationality for international

26 purposes, but not in any proceeding under the laws of the Republic of the Philippines.

27 The certificate of registration is conclusive evidence of ownership, except m a

28 proceeding where such ownership is, or may be, at issue.


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1 SEC. 46. Application for Aircraft Registration. - Applications for certificate of

2 registration shall be made in writing, signed and sworn to by the owner or lessee of any

3 aircraft or aircraft engine eligible for registration. The application shall also state: (1) the

4 date and place of filing: (2) the specification, construction, and technical description of the

5 aircraft or aircraft engine; and (3) such other information as may be required by the

6 Authority in such manner and form as the Authority may prescribe by regulation.

7 SEC. 47. Issuance of Certificate of Registration. - Should the Director, upon

8 considering the application for registration, find the aircraft or aircraft engine eligible for

9 registration, such aircraft shall be registered under the provision of this Act and the owner

10 thereof shall be issued a certificate of registration.

11 Section 48. Nationality. - An aircraft shall acquire Philippine nationality when

12 registered pursuant to this Act.

13 SEC. 49. Revocation. - Any certificate of registration may be revoked by the

14 Authority for any cause which renders the aircraft ineligible for registration.

15 SEC. 50. Conveyance to be Recorded. - No conveyance made or executed, which

16 affects the title to, or interest in, any aircraft of Philippine registry, or any portion thereof

17 shall be valid in respect to such aircraft or portion thereof against any person other than the

18 person by whom the conveyance is made or executed, his heirs, assignees, executors,

19 administrators, devisees, or successors in interest, and any person having actual notice

20 thereof, until such conveyance is recorded in the Authority. Every such conveyance so

21 recorded shall be valid as against all persons. Any instrument, recording of which is

22 required by the provisions of this Act, shall take effect from the date of its record in the

23 books of the Authority, and not from the date of its execution.

24 SEC. 51. Form of Conveyance. - No conveyance may be recorded under the

25 provisions of this Act unless it complies with the requirements for the registration of

26 documents similar to the land registration process. The conveyance to be recorded shall also

27 state: (1) the interest in the aircraft of the person by whom such conveyance is made or

28 executed Of, in the case of a contract of conditional sale, the interest of the vendor; and (2)

29 the interest transferred by the conveyance.


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1 SEC. 52. Establishment of System of Recording. - The Authority shall establish a

2 national system for recording documents that affect the title to or any interest in any aircraft

3 registered in accordance with this Act and in any aircraft engine, propeller, appliance or

4 spare parts intended for use on any such aircraft.

5 SEe. 53. Method of Recording. - The Authority shall record conveyances delivered

6 to it in the order of their receipt, in files kept for that purpose, indexed to show:

11 (e) If such conveyance is made as security for indebtedness, the amount and date

12 of maturity of such indebtedness; and

13 (f) All particular estates, mortgages, liens, leases, orders, and other encumbrances

14 and all decrees, instruments, attachments, or entries affecting aircraft and other matters

15 properly determined under this Act.

16 SEe. 54. Validity before Filing. - Upon establishment of a recording system in

17 accordance with the provisions of this Act, no document affecting the title to or any interest in

18 such registered aircraft, aircraft engines, propellers, appliances, or spare parts shall be valid

19 except as between the parties thereto, unless the document is registered in such recording

20 system.

21 SEe. 55. Previously Unrecorded Ownership. - Applications for the issuance or

22 renewal of an airworthiness certificate for aircraft whose ownership has not been recorded as

23 provided in this Act shall contain such information with respect to the ownership of the

24 aircraft as the Director shall deem necessary to show who have property interests in such

25 aircraft and the nature and extent of such interest.

26 CHAPTER IX

27 AVIATION SAFETY POWERS AND FUNCTION


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1 (a) Promoting Safety. The Director shall have the power and duty to promote safety of

2 flight of civil aircraft in civil aviation by prescribing and revising from time to time as

3 necessary-

4 (1) Reasonable rules and regulations implementing, at minimum, all standards of

5 the Annexes to the Chicago Convention;

6 (2) Such other reasonable rules, regulations, or mInImUm standards governing

7 other practices, methods, and procedures as the Director may find necessary to provide

8 adequately for safety in civil aviation.

9 (b) Considerations in the Regulation of Air Operators. In prescribing standards, rules

10 and regulations and in issuing certificates under this Act, the Director shall take into

11 consideration the obligation of air operators to perform their services with the highest possible

12 degree of safety pursuant to public interest.

13 SEe. 57. Form of Applications. - Applications for certificates issued by virtue of this

14 chapter shall be in such form, contain such information, and be filed and served in such

15 manner as the Authority may prescribe and shall be under oath or affirmation whenever the

16 Authority so requires.

18 SEC. 58. Authority to Certificate Airmen. - The Director is authorized to issue airmen

19 certificates specifying the capacity in which the holders thereof are authorized to serve as

20 airman in connection with an aircraft.

21 SEC. 59. Application and Issuance. - Any individual may file with the Director an

22 application for an airman certificate. If the Director finds, after due investigation, that such

23 individual possesses the proper qualifications for, and is physically able to, perform the duties

24 pertaining to the position for which the airman certificate is sought, the Director shall issue

25 such certificate.

26 SEe. 60. Terms and Conditions. - The airman certificate shall contain such terms,

27 conditions and tests of physical fitness, and other matters as may be necessary to assure safety

28 in civil aviation.


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1 (a) Be numbered and recorded by the Authority;

2 (b) State the name and address ot: and contain a description of the individual to

3 whom the airman certificate is issued; and

SEC. 62. Authority to Is:,ue Airworthiness Certificates. - The owner of any aircraft

registered in accordance with this Act may file with the Director an application for an

airworthiness certificate for such aircraft.

SEC. 63. Issuance. - If it is found that the aircraft conforms to the appropriate type

certificate and, after inspection, finds that the aircraft is in a condition allowing for safe

operation, an airworthiness certificate shall be issued by the Director.

SEe. 64. Terms and Conditions. - The Director shall prescribe in the airworthiness

certificate the duration of such certificat~ the types of service for which the aircraft may be

used, and such other terms, conditions, limitations and information as are required in the

interest of safety. Each airworthiness certificate issued by the Director shall be recorded by it.

SEe. 65. Airworthiness Approvals. - The Director may prescribe the terms under

which additional airworthiness approvals, for purposes of modification, may be made.

SEC. 66. Authority to Certificate Carriers and Establish Safety Standards. - The

Director is authorized to issue air operator certificates and to establish minimum safety

standards for the operation of the air carrier to which any such certificate is issued.

SEC. 67. Application and Issuance. - Any air carrier who is a citizen of the

Philippines may file with the Director an application for an air operator certificate. If the

Director finds. after thorouah investiaation. that such air carrier is orooerlv and adequatelv" ...............,. .. .. J . J

equipped and has demonstrated the ability to conduct a safe operation in accordance with therequirements of this Act and the rules, regulations and standards issued pursuant thereto, the

Director shall issue an air operator certificate to such air carrier. Provided, however, that in no

event shall the Director issue an air operator certificate to an air carrier that does not possess a

valid Certificate of Public Convenience and Necessity (CPCN) issued pursuant to this Act and

its implementing rules.


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1 SEC. 68. Examination and Rating. - The Director is authorized to provide for the

2 examination and rating of:

3 (a) The adequacy of the course of instruction, the suitability and airworthiness of the

4 equipment and the competency of the instructors of civilian schools providing instruction in

5 flying or in the repair, alteration, maintenance, and overhaul of aircraft, aircraft engines,

6 propellers, and appliances; and

7 (b) The adequacy and suitability of the equipment, facilities, and materials for, and

8 methods of, repair and overhaul, and the competency of those engaged in the work or giving

9 any instruction in accredited maintenance organizations or shops engaged in the repair,

10 alteration, maintenance and overhaul of aircraft engines, propellers and appliances.

12 (a) Minimum Safety Standards. The Director shall have the power to prescribe and

13 revise from time to time as necessary minimum safety standards for the operation of air

14 navigation facilities located in the Philippines.

15 (b) Certification of Airports.

16 (1) The Director is empowered to issue airport certificates to, and to establish

17 minimum safety standards for the operation of, airports that serve any scheduled or

18 unscheduled passenger operations of air operator or foreign air operator aircraft.

19 (2) Any person desiring to operate an airport that is described in this Section

20 and that is required by the Director, by rule, to be certified may file with the

21 Director an application for an airport operating certificate. If the Director finds,

22 after investigation, that such person is properly and adequately equipped and able

23 to conduct a safe operation in accordance with the requirements of this Act and the

24 rules and regulations, and standards prescribed thereunder, the Director shall issue

25 an airport operating certificate to such person. Each airport operating certificate26 shall prescribe such terms, conditions, and limitations as are reasonably necessary

27 to assure safety in commercial air transport. Unless the Director determines that it

28 would be contrary to public interest, such terms, conditions, and limitations shall

29 include but not limited to terms and conditions, relating to-

30 ( i ) The operation and maintenance of adequate safety equipment,

31 including fire fighting and rescue equipment capable of rapid access to any


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1 portion of the airport used for landing, takeoff, or surface maneuvering of

2 aircraft; and

3 (ii) The condition and maintenance of primary and secondary runways as

4 the Director determines to be necessary.

5 SEC. 70. Duties and Operations of Airmen. - It shall be the duty of:

6 (a) Each air canier to makeor causetobe made, suchinspection, maintenance, overhaul, and

7 repair of all equipment used in air transport and to ensure that the operations conducted are in

8 accordancewith the provisions of this Act and the rules, regulations, directives and orders issued by

9 virtueof this Act.

10 (b) Each air carrier holding an Air Operntor Certificateto ensure that the maintenance of

11 aircraft and qx:rations thereofareconductedinthepublicinterestandinaccordancewiththerequirementsof

12 thisActandtherules,regulations,directivesandordersissuedbyvirtueofthisAct.

13 (c) Each holder of an airman certificate to observe and comply with the authority and

14 limitations of that certificate, the requirements of this Act and the rules, regulations, directives and

15 ordersissuedby virtueof this Act.

16 (d) Every person performingdutiesin air transportationto observeand comply withthe

17 requirementsof this Actandtherules, regulations, directivesand ordersissuedby virtueof this Act.

18 (e) Every person who offersor accepts shipments, cargo or baggagein air commerce, to offer

19 or accept such shipments, cargo or baggage in accordance with the provisions of Annex 18 of the

20 Chicago Conventionand theICAD Technical Instructions for the SaleTransport of Dangerous Goods

21 by Air.

22 SEC. 71. Authority toInspect.

23 (a) Authority to Inspect Equipment. The Director shall have the power and duty to---

24 (1) Make such inspections of aircraft, aircraft engines, propellers, and appliances

25 used by an operator of civil aircraft as may be necessary to determine that the

26 operators are maintaining the I safe condition for the operation in which they are used;

27 and

29 (b) Unsafe Aircraft, Engines, Propellers and Appliances. When the Director finds that

30 any aircraft, aircraft engine, propeller, or appliance, used or intended to be used by any


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1 operator in civil aviation, is not in acondition for safeoperation, theDirector shall notify the

2 operator. Such aircraft, aircraft engine, propeller, or appliance then shall not be used in civil

3 aviation or in such manner also to endanger civil aviation, unless found by the Director to be

4 in acondition for safeoperation.

5 SEC.72. Amendment. Modification, Suspension, and Revocation of Certificates.

6 (a) Re-inspection and Re-examination - The Director may, from time to time, for

7 any reason, re-inspect or reexamine any civil aircraft, aircraft engine, propeller,

8 appliance, air operator, school, with approved maintenance organization, or any civil

9 airman holding a certificate issued under this Act.

10 (b) Actions of the Director - If, as a result of any such re-inspection or re-

11 examination, or if, as a result of any other investigation made by the Director, the

12 Director determines that safety in civil aviation or commercial air transport and the

13 public interest requires, the Director may issue an order amending, modifying,

14 suspending, or revoking, in whole or in part, any airworthiness certificate, airman

15 certificate, air operator certificate, or certificate for any airport, school, or approved

16 maintenance organization issued under this Act.

17 (c) Notice to Certificate Holders and Opportunity to Answer - Prior to

18 amending, modifying, suspending, or revoking any of the foregoing certificates, the

19 Director shall advise the holder thereof as to any charges or reasons relied upon by the

20 Director for the proposed action and, except in cases of emergency, shall provide the

21 holder of such certificate an opportunity to answer any charges and be heard as to why

22 such certificate should .not be amended, modified, suspended, or revoked.

23 (d) Appeals - Any person whose certificate is affected by such an order of the

24 Director under this section may file his Motion for Reconsideration within five (5) days

25 from receipt thereof and in case of denial shall, within ten (10) days, file his appeal to

26 the Board.

27 (e) Effectiveness of Orders Pending Appeal - The filing of Motion for

28 Reconsideration or Appeal as provided for under this Act shall not stay the effectiveness

29 of thlle Director's order except through an injunctive relief duly issued by a court of

30 competent jurisdiction.


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1 (1) Operate in civil aviation any civil aircraft which there is not currently in

2 effect a certificate of airworthiness and registration, or in violation of the terms

3 of any such certificates and operation of the aircraft in a careless and reckless

4 manner and operation of aircraft in contravention of its approved operating

5 limitations and manual.

6 (2) Serve in any capacity as an airman in connection with any civil aircraft,

7 aircraft engine, propeller, or appliance used or intended for use in civil aviation

8 without an airman certificate authorizing that person to serve in such capacity, or

9 in violation of any term, condition, or limitation of his certificate, or in violation

10 of any order, rule, or regulation issued under this Act;

11 (3) Employ for service in connection with any civil aircraft used in civil

12 aviation an airman who does not have an airman certificate authorizing that

13 person to serve in the capacity for which the person is employed;

14 (4) Operate as an air operator without an air operator certificate, or 10

15 violation of the terms of any such certificate;

16 (5) Operate aircraft in civil aviation in violation of any rule, regulation, a

17 certificate issued by the Director under this Act; and

18 (6) While holding a certificate issued to a school or approved maintenance

19 organization as provided in this Act, to violate any term, condition, or limitation

20 thereof, to violate any order, rule, or regulation made under this Act relating to

21 the holder of such certificate.

22 (b) Considering that the aircraft operation is impressed with public interest, the Director

23 may prescribe exemptions of the foregoing provisions for foreign aircraft and airmen.

24 CHAPTERX

25 OTHER POWERS

26 SEC. 74. Statutory Lien. - The Director, after complying with the required legal

27 formalities provided by law, shall have the power to impose lien on aircraft and machinery:


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1 (a) If the charges and other fees are not paid in full on due date or any part of the

2 charges or the late payment penalty thereto remains unpaid; and

3 (b) Failure to pay administrative fines arising from violation of any rules and

4 regulations promulgated by the Authority.

5 SEe. 75. Lien on Personal and Real Properties. - The Director shall have the power

6 to impose lien on personal and real properties, and other assets of persons, corporations,

7 partnerships, and such other entities that shall be in default, or fail to perform their

8 obligations, or fail to pay the fines and other penalties imposed for violations of the law, rules

9 and regulations of the Authority.

10 Properties and assets levied upon may be sold and the proceeds thereof shall be

11 applied to the satisfaction of the obligation after due notice and hearing.

12 SEC. 76. Police Authority. - The Director shall have the power to exercise such police

13 authority as may be necessary within the premises of airports under its jurisdiction to carry out

14 its functions and attain its purposes and objectives. The grant of such powers shall be in

15 conformity with the functions exclusively provided by law to be exercised by the Philippine

16 National Police and other concerned government agencies, provided that the Authority may

17 request the assistance of other law enforcement agencies, including request for deputization as

18 may be required. Such police authority shall be exercised in connection with the following:

19 (a) Maintenance of security to passengers, cargoes, aircraft, airport equipment,20 structures, facilities, personnel, funds and documents;

22 (c) Maintenance of peace and order within the premises of an airport in coordination

23 with local police authorities and other authorized peace-keeping entities within an airport;

24 (d) Regulation and supervision of private security agencies operating within an

25 airport; and

26 (e) Enforcement of rules and regulations promulgated by the Board pursuant to the

27 authority granted under this Act.

28 SEC. 77. Regulation of Building Heights. - The Board shall have the power to

29 regulate the height of buildings, towers, antennae, and other edifices, situated within the

30 vicinity of or in close proximity to airports estimated to endanger the flight of aircrafts. It

31 shall also have the power to prohibit or regulate the establishment and operations of electrical,

32 electronics, sound, magnetic, laser, or other electronic ga

cttee. report no.98

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