QuestionsQuestions (Republic Act No. 776)
The Act is titled the “Civil Aeronautics Act of the Philippines.” Its general purpose is to reorganize the Civil Aeronautics Board and the Civil Aeronautics Administration, define their powers and duties, adjust funds/personnel, and regulate civil aeronautics, with an express limitation that the Act’s provisions generally do not apply (except for air traffic rules) to military aircraft/airmen and certain foreign public/foreign civil aircraft/airmen not covered by Chapters III and IV.
“Permit” means a “Certificate of Public Convenience and Necessity,” which is a permit issued by the Board authorizing a person to engage in air commerce and/or air transportation (foreign and/or domestic). The Board issues, denies, amends, suspends, cancels, or revokes permits under Chapter IV.
“Air carrier” is a person who undertakes (directly or indirectly, by lease or other arrangements) to engage in air transportation or air commerce. “Air transportation” is the service/carriage of persons, property, or mail by aircraft (in whole or in part). “Air commerce” includes air transportation for pay or hire, navigation of aircraft in furtherance of a business, and navigation from one place to another for operation in the conduct of a business.
They must consider among other things: development/utilization of the Philippines’ air potential; encouragement of an air transportation system adapted to present/future foreign/domestic commerce, Postal Service, and national defense; regulation for safety and sound economic condition; promotion of adequate efficient service at reasonable charges without unjust discrimination; competition to ensure sound system development; promotion of flight safety in air commerce in the Philippines; and encouragement/development of civil aeronautics.
The Board consists of: the Secretary of Commerce and Industry as Chairman; the Civil Aeronautics Administrator; the Commanding Officer of the Philippine Air Force; and two other appointed members. No member shall have any pecuniary interest in or own any stock or bond of any civil aeronautics enterprise.
The Chairman and two members constitute a quorum. A majority of members constituting the quorum is required for a valid enforceable decision/order. A tie vote is referred to the President for decision.
The Board regulates the economic aspect of air transportation and has supervision/jurisdiction over air carriers (including property, rights, equipment, facilities, and franchise as necessary). It may conduct investigations, issue/amend orders and rules, issue/deny/amend/revoke permits (as in Chapter IV), fix reasonable rates/charges/fare, approve/deny corporate transactions (capital increases, mergers, leases, etc.), require reports and records, issue subpoenas, and review administrative decisions of the Administrator in specified matters.
A permit does not confer proprietary/property/exclusive rights in the use of air space, civil airways, landing areas, or government air-navigation facilities. Permits specify terminals/intermediate points, service, time of arrival/departure, and frequency, and route/rate/schedule/frequency changes or supplemental/additional flights require prior Board approval.
Except as otherwise provided in the Constitution and existing treaty(s), permits for domestic air commerce/transportation shall be issued to citizens of the Philippines.
The Board’s proceedings aim for proper dispatch and ends of justice; it is not bound by technical rules of evidence. Hearings/investigations follow Board rules of procedure. The Board gives due notice to the public (posting and publication once a week for three consecutive weeks at applicant’s expense) and to interested persons as it determines (notice/publication may be dispensed with for public interest). After last publication (or immediately if dispensed), the Board sets time/place and notifies parties. If parties fail to appear, it may proceed ex parte or adjourn with notice.
The Board may alter/amend/modify/suspend by order after notice and opportunity for hearing if public convenience and necessity so require; or revoke if there is intentional failure to comply with the Act, orders, rules, regulations, or permit terms/conditions/limitations. For good cause, it may suspend without notice and hearing for up to 30 days to avoid serious or irreparable damage/inconvenience to the public.
No permit may be transferred unless the Board approves it as consistent with the public interest.
A permit continues until suspended/revoked or until the Board certifies operation has ceased. If authorized service is not inaugurated within 90 days after authorization (or another period designated by the Board), the Board may order the permit cease to be effective to that extent. No permit shall be issued for more than 25 years.
Examples include: enforcing Act and regulations; designating civil airways and acquiring/controlling/operating/maintaining air navigation facilities; issuing airmen’s certificates and airworthiness certificates; issuing air carrier operating certificates and establishing minimum safety standards; issuing type certificates; inspecting/classifying/rating navigation facilities and aerodromes and issuing certificates for them; promulgating extensive safety and operational rules (air traffic services, rules of the air, collision prevention, radio/aeronautical telecommunications, etc.); investigating violations and accidents and recommending to the Board; collecting/disseminating civil aviation information; and imposing reasonable charges/fees (subject to specific exceptions referenced in the text).
It provides that no report on an accident or statement made during investigation/hearing relative to the accident may be admitted as evidence or used for any purpose in any civil suit growing out of any matter revealed within such report/statement/investigation/hearing.
Except as otherwise provided, no aircraft is eligible unless it is owned by citizens of the Philippines and not registered under laws of any foreign country. The certificate is conclusive evidence of nationality for international purposes, but not in proceedings under Republic of the Philippines laws; and it is conclusive evidence of ownership except in a proceeding where ownership is, or may be, at issue.
Engaging in air commerce without a Board-issued permit is punishable by a fine not exceeding ₱5,000 or imprisonment not more than one year, or both. There is a transitional rule: persons engaging on the date of approval may continue until the Board acts on an application for a permit filed within 120 days after approval.
Board decisions/orders/rulings become final and conclusive after 15 days from date unless appealed within that period to the Supreme Court by certiorari. The Supreme Court may review and modify or set aside if it clearly appears there was no evidence to support reasonably the Board’s order, it is contrary to law, or the Board acted without/exceeded jurisdiction.