Question & AnswerQ&A (Republic Act No. 9183)
The franchise grants Asian Spirit, Inc. the right to establish, operate, and maintain domestic and international air transport services for the carriage of passengers, mail, goods, and property by air, including operation of auxiliary services such as aircraft service stations and wireless communication facilities.
All aircraft used by Asian Spirit, Inc. must be airworthy at all times and crew members must be licensed by the Government of the Philippines. The aircraft must be equipped and maintained according to the Air Transportation Office regulations.
At least twenty-five percent (25%) of all its frequencies must be dedicated to the domestic market.
The franchise term is twenty-five (25) years from the date of effectivity of the Act, unless revoked or cancelled sooner.
Failure to commence operation within one (1) year from permit approval by the Civil Aeronautics Board, failure to operate continuously for two (2) years, failure to commence operations within two (2) years from the effectivity of the Act, and failure to comply with the ownership dispersal requirement.
No, the franchise is not exclusive. If a competing entity receives a franchise with more favorable terms, these terms must also apply to Asian Spirit, Inc.
The grantee must submit an annual report to the Congress of the Philippines within sixty (60) days from the end of every year, detailing compliance with franchise terms and operational status.
No, the franchise cannot be leased, transferred, sold, assigned, or merged without prior approval from the Congress of the Philippines.
The President can temporarily take over or suspend the operation of the grantee's facilities or equipment in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The grantee must file a bond in favor of the Civil Aeronautics Board to guarantee compliance with franchise conditions, with the bond potentially forfeited if conditions are not met within three (3) years after permit approval.