QuestionsQuestions (PRESIDENTIAL DECREE NO. 1462)
PD No. 1462 amends Republic Act (RA) No. 776 (the Civil Aeronautics Board Law) by expanding CAB authority and flexibility to meet civil aviation demands in the Philippines.
PD No. 1462 adds paragraphs (jj), (kk), and (ll) to Section 3 of RA 776 defining: (1) general sales agent as a non-employee who sells/offers/negotiates or holds itself out to sell air transportation; (2) cargo sales agent similarly but limited to cargo air transportation; and (3) air freight forwarder as an indirect air carrier that consolidates/breaks bulk and is responsible for transport from receipt to destination using direct air carriers.
The CAB is composed of the Minister of Tourism as Chairman, the Director of the Civil Aeronautics Administration as Vice Chairman, the Commanding General of the Philippine Air Force, and two President-appointed members. They hold office at the pleasure of the President.
No member of the Board may have any pecuniary interest in, or own any stock or bond of, any civil aeronautics enterprise.
The Chairman or Vice Chairman and two members of the Board constitute a quorum.
The Board has an Executive Director, a Deputy Executive Director, and a Board Secretary who must be a member of the Philippine Bar. The Executive Director is Chief Executive; the Board Secretary records proceedings, keeps papers, and performs duties prescribed by the Board.
Upon recommendation of the Board, the Chairman may engage duly qualified consultants, experts, and/or agencies and other qualified persons for temporary service and fix their compensation.
CAB regulates the economic aspect of air transportation and has general supervision and regulation/jurisdiction/control over air carriers, general sales agents, cargo sales agents, and airfreight forwarders, including their property, rights, equipment, facilities, and franchise insofar as necessary to carry out the Act.
CAB may authorize any type of charters and special air services under terms it deems in the public interest. Even notwithstanding bilateral air agreements, CAB may grant foreign airlines increases in frequencies and/or capacities on international routes when national interest requires it, but utilization of the increase must not exceed thirty days, and all grants are subject to President approval.
CAB may approve/disapprove increases/decreases of capital, lease/purchase/sale of aircraft, consolidation/merger/purchase/lease/acquisition and control of operating contracts among domestic carriers, between domestic and foreign carriers, or between domestic carriers and persons engaged in any aeronautics phase.
A CPCN is a permit issued by the Board authorizing a person to engage in air commerce and/or air transportation (foreign and/or domestic). No person may engage in air commerce unless a permit is in force.
They cannot engage in the activities mentioned in Section 3(jj), (kk), and (ll) respectively unless there is a permit or other form of authorization issued by the CAB.
No permit may be transferred without the prior approval of the Board.
A violator faces a fine not exceeding PHP 5,000 for each violation, plus up to PHP 200 per day for each day the default/violation continues. CAB may impose the fine after due notice and hearing.
Fines must be paid to the government through the CAB. Failure to pay within the time specified is a ground for suspension of the permit until payment is made, and payment may also be enforced through an action in a court of competent jurisdiction.
Fees for acts of service performed when no fee is fixed by law may be collected as prescribed by the CAA or CAB. However, fees prescribed by the CAA require approval of the Department Head.