Question & AnswerQ&A (Republic Act No. 10901)
The franchise grants Pilipinas Asian Pearl Airways, Inc. the right to establish, operate, and maintain air transport services for passengers, mail, goods, and properties domestically and internationally, including the maintenance of hangars, aircraft service stations, and wireless communication facilities used solely for receiving and transmitting weather forecasts and related matters.
The grantee must secure the appropriate permits and licenses from the Civil Aeronautics Board (CAB), and comply with the airworthiness and licensing requirements set by the Civil Aviation Authority of the Philippines (CAAP) or other regulatory bodies.
The grantee must allocate at least twenty-five percent (25%) of all its frequencies for the domestic market.
The rates for transportation of passengers, mail, goods, and freight fixed by the grantee shall be just and reasonable and subject to the regulations and approval of the Civil Aeronautics Board (CAB) and other proper regulatory agencies.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity, unless sooner revoked or cancelled.
The franchise is ipso facto revoked if the grantee fails to commence operations within one year from CAB permit approval, fails to secure an Air Operator Certificate within a year from CAB permit application, does not operate continuously for two years, or fails to commence operations within two years from the effectivity of the Act.
No, the grantee cannot lease, transfer, sell, assign, or merge the franchise or controlling interest without prior approval from Congress. Failure to report such changes within sixty days after the transaction results in automatic revocation of the franchise.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens in any Philippine securities exchange within five years from the commencement of operations.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over, operate, suspend, or authorize government agency use of the grantee's facilities or equipment, with due compensation.
A fine of Five Hundred Pesos (P500.00) per working day of noncompliance is imposed, collectible by the CAB, separate from other penalties, until the report is submitted.