Question & AnswerQ&A (CAB RULES AND REGULATIONS OF EXECUTIVE ORDER NO. 253)
The purpose of Executive Order No. 253 and its IRR is to further liberalize civil aviation in the Philippines by granting or enhancing certain air cargo traffic rights specifically to and from Diosdado Macapagal International Airport (DMIA) and Subic Bay International Airport (SBIA) to promote the expansion of air cargo services.
'Air Carrier' means any person who undertakes, directly or through lease or other arrangements, to engage in air transportation or air commerce. 'Board' refers to the Civil Aeronautics Board.
International air cargo transportation means the transportation of cargo and/or mail by air between the Philippines and any place outside it by pure cargo carriers.
'Development routes' refer to routes, destinations, or gateways that need full promotion and support to enhance their potential as centers of economic growth and activity; DMIA and SBIA are considered such routes.
Non-cabotage traffic rules cover any right to carry traffic to and from DMIA and SBIA in international air cargo transportation, excluding the right to carry traffic from one point in the Philippines to another point within the country.
Foreign cargo carriers must file a verified petition with the Civil Aeronautics Board specifying the routes, capacity, types of aircraft, and start-up dates. They must also serve copies to Philippine carriers engaged in international air cargo transportation. If they have existing Air Service Agreements (ASA), they must certify the option to operate under EO 253 in lieu of ASA rights and agree not to mix rights granted under both.
The CAB considers that air access to these airports is declared a development route and may grant authority without restrictions on frequency, capacity, aircraft configuration, and non-cabotage traffic rights, subject to operational, commercial, security, and safety requirements.
The right to operate under EO 253 is effective for five (5) years and is renewable upon petition by the grantee. The renewal petition must be filed thirty (30) days prior to expiration and the authority is coterminous with the foreign air carrier's permit.
Applicants must pay PHP 75,000.00 for application or renewal of the right to operate and PHP 15,000.00 for application or renewal of a waiver of restrictions. The CAB may amend these fees as needed.
Violations are penalized according to the provisions under Republic Act No. 776, which governs civil aviation in the Philippines.
Under R.A. 776, the CAB may inspect the premises and operations of international air cargo carriers operating at DMIA and SBIA to ensure proper implementation of EO 253.
The CAB ensures that consumers are protected from discriminatory prices or unreasonably high or restrictive practices due to abuse of dominant position and prevents air carriers from engaging in predatory pricing, which includes setting artificially low or uneconomic prices.
Yes, the Board reserves the right to amend, repeal, or modify the IRR as warranted to serve the objectives of EO 253 and consistent with R.A. 776.
If any section or part of the IRR is declared unconstitutional, the remaining sections or parts shall remain unaffected and continue to be in force.