QuestionsQuestions (DOTC DEPARTMENT ORDER NO. 95-848)
It cited Republic Act (RA) No. 7227 to justify the creation and development policy of the Subic Bay Freeport and the role of the Subic International Airport in developing the zone. It cited RA No. 776 to support the government’s policy and authority to develop and utilize the country’s air transportation system and to take charge of technical and operational civil aviation matters, including designating airways and navigation facilities.
It means Subic International Airport is treated, for purposes of interpreting specific “all-cargo” provisions in certain air agreements, as if it were an airport serving Manila—subject to the Order’s limitations and without depriving any contracting party of rights under those agreements.
1) The Air Transport Agreement between the Republic of the Philippines and the United States of America (with amendments). 2) The Air Services Agreement between the Government of the Republic of the Philippines and the Government of Japan (with amendments), limited by the Order. 3) The Agreement (with amendments) between the Government of the Republic of the Philippines and the Government of the United Kingdom of Great Britain and Northern Ireland for Air Services Between and Beyond their Respective Territories.
The Order is limited to specified all-cargo rights and routes: (1) Third and Fourth Freedom rights between the Philippines and the U.S., with carriers designated by either government or authorized by the U.S.-Philippines Air Transport Agreement; (2) carriage of cargo on all-cargo flights where Manila is the intermediate point (as authorized) even if performed through Subic; (3) Fifth Freedom rights between Japan and the Philippines to the extent authorized; (4) in line with the Japan agreement, Third and Fourth Freedom rights between the Philippines and Japan; and (5) under the UK agreement, Third and Fourth Freedom rights between the Philippines and Hong Kong.
It signals that the declaration applies not only to the original text of the cited agreements but also to their subsequent amendments. Thus, the operational effect of “airport serving Manila” adapts with treaty updates incorporated by amendment.
In international air law, Third Freedom generally relates to carriage of traffic between two foreign states via the carrier’s home state (or related entitlements), and Fourth Freedom relates to carriage between the two foreign states that starts in the carrier’s home state. The Order specifies these rights are exercised for all-cargo operations between the Philippines and the U.S. as authorized by the applicable agreement.
The Order authorizes (to the extent permitted by the U.S.-Philippines Air Transport Agreement, as written in the Order) the exercise of all-cargo Fifth Freedom rights between Japan and the Philippines by carriers designated by either government or authorized under that cited agreement. The key point is that the rights are limited by what the agreement allows.
It authorizes specific cargo rights only when exercised by carriers that are designated by the Philippines or by the counterpart government (e.g., the U.S., Japan, or the UK/Hong Kong context), consistent with the terms of the relevant air agreements.
It indicates that flights may be performed nonstop (direct) or via intermediate points, yet still qualify under the authorized route/traffic rights. Cargo operations can still fall within the agreement’s scope even if the flight includes stopovers, as long as the underlying right is authorized.
For Japan: it mentions all-cargo Fifth Freedom rights between Japan and the Philippines (as authorized by the U.S.-Philippines Air Transport Agreement as written in the Order), and separately—“to the extent authorized” by the Philippines-Japan Air Services Agreement—it authorizes Third and Fourth Freedom rights between the Philippines and Japan by carriers designated by either government. For the U.S.: it clearly authorizes Third and Fourth Freedom rights between the Philippines and the U.S. (and related cargo carriage where Manila is an intermediate point), under the U.S.-Philippines Air Transport Agreement.
It provides that, to the extent authorized by the UK-Philippines agreement, Third and Fourth Freedom rights between the Philippines and Hong Kong may be exercised by carriers designated by either government for all-cargo operations.
It is a savings clause: even though the Order declares Subic as serving Manila for certain interpretations and operations, it cannot be construed to strip or diminish rights that the parties already have under the cited air agreements.
From the text, it primarily acts to declare Subic as an “airport serving Manila” for interpreting specified all-cargo provisions under existing treaties. It is geared toward domestic implementation/interpretation in light of international obligations, not an amendment or replacement of treaty rights.
It takes effect immediately. “Shall supplement other related issuances” implies it is intended to add to or complement existing DOTC/civil aviation issuances rather than wholly replace them, so later rules may refine or extend application without necessarily nullifying prior regulations.
The text links the airport’s function to the development of the Subic Freeport into a self-sustaining industrial, commercial, financial, and investment center. By treating Subic Airport as serving Manila for cargo rights interpretation, the government aims to strengthen cargo connectivity that supports economic development goals.
It supports the legitimacy of DOTC’s regulatory/administrative action to designate and establish airways/air navigation facilities and to issue orders governing operational aspects of civil aviation. It helps establish that the DOTC Secretary acted within delegated or statutory authority under the cited law.