Question & AnswerQ&A (Republic Act No. 9517)
Republic Act No. 9517 grants Southeast Asian Airlines (SEAir), Inc. a franchise to establish, operate, and maintain domestic and international air transport services with Clarkfield, Pampanga as its base.
The franchise includes the rights to carry passengers, mail, goods, and property by air, operate hangars and aircraft service stations, construct and maintain wireless telegraphy and radio communication facilities necessary for air transport services.
SEAir must secure appropriate permits and licenses from the Civil Aeronautics Board (CAB) to operate.
Aircraft must be airworthy, equipped with proper radio communication and safety equipment, and crew members must be licensed by the Philippine government. Operations and equipment are subject to inspection and regulation by the Civil Aviation Authority of the Philippines.
SEAir is required to allocate at least twenty-five percent (25%) of all its frequencies for the domestic market.
The franchise is revoked if SEAir fails to commence operations within one year from CAB permit approval, fails to operate continuously for two years, or fails to commence operations within two years from the effectivity of the Act.
Non-acceptance within 60 days after the effectivity of the Act renders the franchise void.
The bond guarantees compliance with the franchise conditions. It can be canceled after three years if obligations are met or forfeited leading to franchise revocation if conditions are unmet.
No, the franchise cannot be leased, sold, assigned, or merged without prior approval from the Congress of the Philippines.
SEAir must offer at least thirty percent (30%) of its outstanding capital stock for public ownership within five years from the commencement of operations, promoting public participation in the utility.
The President has the right to temporarily take over, operate, suspend, or authorize the use of SEAir's facilities during war, rebellion, public peril, calamity, or emergency with due compensation.
SEAir shall hold harmless the national and local governments from all claims or actions arising from accidents or injuries caused by its operations.
No, the franchise is nonexclusive and subject to amendment, alteration, or repeal by Congress when public interest so requires.
SEAir must submit an annual report to Congress within 60 days after each year’s end on its compliance with franchise terms and its operations.
SEAir is entitled to the same terms and provisions given to competing airlines to ensure equal treatment.