Question & AnswerQ&A (EXECUTIVE ORDER NO. 219)
The main policy objective is the liberalization of domestic and international civil aviation in the Philippines to increase air service availability, quality, and efficiency through exposure to foreign markets and competition, in line with the constitutional mandate and the Philippines 2000 strategy of global competitiveness.
At least two (2) international carriers shall be designated official carriers for the Philippines. Additional carriers may be designated if the existing carriers do not service the total frequency entitlement under Air Services Agreements.
The exchange of traffic rights and routes shall be based on (a) the national interest, which includes promoting international trade, foreign investments, and tourism, and (b) reciprocity between the Philippines and other countries, meaning exchange of rights, freedoms, and opportunities of equal or equivalent value.
The Civil Aeronautics Board (CAB) determines 'national interest,' considering the larger interest of the country, especially the users of air services.
The CAB has the sole prerogative to grant frequencies, capacities, new routes, or increase existing ones for foreign carriers, subject to the confirmation of the Office of the President.
The CAB regulates fares, rates, and charges of foreign designated carriers in accordance with existing laws, considering reciprocity and value for the Philippines, including discounted or promotional fares.
The CAB may authorize chartered flights and non-scheduled services provided they do not significantly divert traffic from scheduled services.
The policy encourages at least two (2) operators for each route/link, allowing new entrants on routes with only one operator. Existing operators’ right to leave a route is recognized but must comply with CAB findings that abandonment is uneconomical and in the public interest.
Passage rates shall be deregulated for routes operated by more than one common carrier but regulated for routes serviced by a single operator. However, all freight rates, charges, and passage rates are monitored by the CAB.
The Air Negotiating Panel is led by the Department of Foreign Affairs (DFA) and includes representatives from the CAB, the Philippine designated carriers, and others authorized by the President. The Consultation Panel is chaired by the CAB and includes representatives from the DFA, Department of Trade and Industry (DTI), Department of Tourism (DOT), designated carriers, and others authorized by the Secretary of Transportation and Communications.