Key definitions and policy directions
- Section 3 establishes these governing definitions (among others):
- “Administrator” means the Civil Aeronautics Administrator.
- “Aerodrome” means a defined area on land or water, including buildings, installations, and equipment intended for arrival, departure, and movement of aircraft.
- “Aeronautics” means the science and art of flight.
- “Aeronautical telecommunication” includes telegraph or telephone communication signs, signals, writings, images, and sounds by wire, radio, or other signaling systems used in aeronautical service.
- “Air carrier” means a person who undertakes, whether directly or indirectly, or by lease or other arrangements, to engage in air transportation or air commerce.
- “Air commerce” includes air transportation for pay or hire; navigation in furtherance of a business; or navigation from one place to another for operation in the conduct of a business.
- “Air transportation” means carriage of persons, property, or mail by aircraft, wholly or in part.
- “Aircraft” means any contrivance used or designed for navigation or flight in the air.
- “Airman” includes individuals in command or as pilot, mechanic, flight radio operator, or crew member while the aircraft is under way; individuals directly in charge of inspection, maintenance, overhauling, or repair of aircraft/engines/propellers/appliances; and individuals serving as aircraft dispatcher or air-traffic control operator.
- “Air navigation facility” means any facility used in, available for, or designed for aid of air navigation (including areas, lights, weather information apparatus, signaling, radio-directional finding, electrical communication structures/mechanisms, and similar purposes for guiding/controlling flight or landing/take-off).
- “Airway” means a path through navigable air space identified by a specified width on the earth’s surface designated or approved by the Administrator as suitable for air commerce or air transportation.
- “Airworthiness” means proper design and construction of an aircraft and its components such that it is safe for air navigation, consistent with accepted engineering practice and aircraft science.
- “Permit” means Certificate of Public Convenience and Necessity.
- “Person” includes individuals, firms, partnerships, corporations, companies, associations, joint-stock associations, body politic, and trustees, receivers, assignees, or similar representatives.
- “Public aircraft” means an aircraft used exclusively in the service of the National Government or any political subdivision or instrumentality, but not government-owned aircraft engaged in air commerce.
- “Reasonable charges” are uniform charges ensuring just and reasonable return on capital invested, considering construction, operation and maintenance, and non-aeronautical revenue of the affected air navigation facility.
- Section 4 directs the Civil Aeronautics Board and the Civil Aeronautics Administrator to consider, in exercising powers and duties, the public interest and public convenience and necessity, including:
- Development and utilization of the air potential of the Philippines.
- Encouragement and development of an air transportation system adapted to foreign and domestic commerce, Postal Service, and National Defense.
- Regulation of air transportation to recognize inherent advantages, assure highest degree of safety, foster sound economic condition, and improve carrier relations and coordination.
- Promotion of adequate, economical, and efficient service at reasonable charges without unjust discrimination, undue preferences or advantages, or unfair/destructive competitive practices.
- Competition between air carriers to the extent necessary for sound development of the air transportation system for foreign/domestic commerce, Postal Service, and National Defense.
- Promotion of safety of flight in air commerce in the Philippines.
- Encouragement and development of civil aeronautics.
Civil Aeronautics Board: structure and powers
- Section 5 establishes the Civil Aeronautics Board composition:
- The Secretary of Commerce and Industry as Chairman,
- The Civil Aeronautics Administrator,
- The Commanding Officer of the Philippine Air Force, and
- Two other members appointed by the President.
- Board members hold office at the pleasure of the President and receive per diem per meeting actually attended, in an amount fixed by the President; when the Secretary of Commerce and Industry is absent or incapacitated, the Administrator acts as Chairman.
- Section 6 provides the Board’s principal office in Manila, authority to hold hearings at times and places within the Philippines by written order, and requires:
- Chairman and two members as a quorum to transact business,
- Majority vote of quorum members for valid and enforceable decisions/orders,
- Tie vote referred to the President for decision.
- Section 7 requires permanent personnel:
- A permanent Secretary (member of the Philippine Bar) receiving PHP 5,100 per annum, recording proceedings, keeping papers, and performing duties prescribed by the Board,
- A permanent stenographer receiving PHP 2,400 per annum, plus other employees as necessary.
- Section 8 authorizes temporary personnel for qualified consulting engineers/agencies/other qualified persons, with compensation fixed by the President’s approval and without regard to civil service rules and regulations.
- Section 9 requires an annual report to the President containing information/data valuable for civil aeronautics development and recommendations for additional legislation.
- Section 10 gives the Board authority to regulate the economic aspect of air transportation and supervise/regulate air carriers and their property, rights, equipment, facilities, and franchise as necessary to implement the Act.
- Section 10 empowers the Board to issue and amend orders and make general or special rules, regulations, and procedures necessary to carry out the Act.
- Section 10 lists specific Board powers and duties, including:
- Issuing, denying, amending, revising, altering, modifying, canceling, suspending, or revoking in whole or part temporary operating permits and Certificates of Public Convenience and Necessity upon petition/complaint or on its initiative; for foreign air carriers, permit issuance requires President of the Republic of the Philippines approval.
- Fixing and determining reasonable individual, joint, or special rates, charges, or fares air carriers may demand/collect/receive for air commerce; adopted rates must not be unduly preferential, unduly discriminatory, or unreasonable; the burden of proof to show just and reasonable rates/charges/fare is on the air carrier proposing them.
- Fixing rates/charges/fare while considering traffic movement effects, public interest for adequate/efficient transportation at the lowest cost consistent with service, standards of service character/quality prescribed by law, inherent aircraft transportation advantages, and each air carrier’s revenue needs for honest/economical/efficient management to provide adequate/efficient service.
- Authorizing charters (domestic or international) and special air services previously exercised by the Department of Commerce and Industry under Commonwealth Act No. 97, under terms/conditions the Board judges required by the public interest.
- Approving/disapproving increases of capital and transactions involving air carriers: sale of equipment, consolidation, merger, purchase, lease, operating contract, or acquisition and control between domestic carriers; between domestic and foreign carriers; or between domestic carriers and persons engaged in any phase of aeronautics.
- Investigating air carrier management, requiring full reports and information from the carrier and persons controlling/controlled/under common control, with reports under oath when the Board requires.
- Requiring annual, monthly, periodical, and special reports from air carriers; prescribing manner/forms; requiring specific answers; requiring contracts/agreements/understandings/arrangements (true copies) between carriers/persons relating to traffic affected by the Act.
- Prescribing forms of accounts/records/memoranda of traffic movement and money receipt/expenditures and the period for preservation, allowing additional accounts only if they do not impair integrity or impose undue financial burden.
- Requiring officers/directors of air carriers to transmit reports describing shares of stock/other interests held with persons engaged in any phase of aeronautics, and stock/controlling interests in other aeronautics-phase persons.
- Investigating alleged violations of the Act or rules/regulations, consistent with the Act, to prevent further violations.
- Issuing subpoenas or subpoenas duces tecum, requiring attendance/testimony of witnesses, and requiring production of books/papers/tariffs/contracts/agreements and other documents, verified under oath as to truth and correctness of data.
- Reviewing, revising, reversing, modifying, or affirming on appeal administrative decisions/orders of the Administrator involving grounding of airmen/aircrafts, revocation/denial of certificates, or civil penalty/fine imposition; and determining whether to impose, remit, mitigate, increase, or compromise fines and civil penalties.
- Section 10(1)-(2) requires the Board to consult and consider treaty obligations:
- The Board must be advised of and consult with the Department of Foreign Affairs regarding negotiation of air agreements with foreign governments.
- In exercising powers, the Board must consider obligations assumed by the Republic of the Philippines in treaties/conventions/agreements on civil aviation matters.
Certificate of Public Convenience and Necessity
- Section 11 defines and governs Certificates of Public Convenience and Necessity (permits):
- A permit is issued by the Board authorizing a person to engage in air commerce and/or air transportation, foreign and/or domestic.
- The Board may alter, amend, modify, suspend, cancel, or revoke permits in whole or part upon complaint/petition or on its initiative when the Board finds it in the public interest.
- The privileges of any permit must be exercised under reasonable terms, conditions, or limitations the Board requires.
- No permit confers any proprietary/property/exclusive right in the use of air space, civil airways, landing areas, or government air-navigation facilities.
- Section 11 requires permit content including terminal and intermediate points, service rendered, time of arrival/departure, and flight frequency; permits govern routes and related operational parameters, and:
- No change in routes, rates, schedules, frequency, or supplemental/additional flights to covered routes shall be effected without prior approval of the Civil Aeronautics Board.
- For operations taking place without the Philippines, the permit designates terminal and intermediate points only as practicable and otherwise designates only general route(s).
- Section 11 prohibits route abandonment:
- A carrier may not abandon any route (or part thereof) for which a permit was issued unless the Board finds abandonment uneconomical and in the public interest.
- Section 12 imposes a citizenship requirement:
- Permit authorizing domestic air commerce and/or air transportation shall be issued to citizens of the Philippines, except as otherwise provided in the Constitution and existing treaty(s).
- Section 13 governs proceedings:
- Board proceedings must be conducted to dispatch business and serve ends of justice.
- Hearings/investigations are governed by Board rules of procedure and the Board is not bound by technical rules of evidence.
- Section 14 allows delegation of hearing authority:
- The Board may designate members or officers in writing to conduct hearings/investigations, authorizing the designated person to administer oaths, issue subpoenas and subpoenas duces tecum, require attendance/testimony, examine witnesses, and conduct ocular inspection/enter airline establishments/buildings/places/premises to perform official business.
- Section 15 requires applications:
- Applications for permit are in writing, verified, in the Board-prescribed form and containing Board-required information, and must be accompanied by proof of service on interested persons as the Board’s regulations require.
- Section 16 requires notice procedures:
- Upon filing, the Board gives due notice to the public by posting in the Board office and publication once a week for three consecutive weeks, at the applicant’s expense, in a newspaper of general circulation.
- Notice to other persons is given as the Board determines by regulation.
- The Board may dispense with notice/publication when public interest requires.
- Interested persons may file memoranda supporting or opposing issuance.
- Section 17 sets the meeting timetable:
- Within one week after the last publication under Section 16, the Board (or designated representative) sets time and place for the meeting and notifies parties/attorneys in writing to appear.
- If publication is dispensed with, the Board immediately sets time and place.
- Section 18 covers non-appearance:
- If a party fails to appear or no one appears, the Board or designated representative may proceed ex parte or adjourn and give notice of adjournment to absent party/parties.
- Section 19 allows depositions:
- The Board/designated representatives may order depositions of witnesses residing within or without the Philippines under the Rules of Court manner.
- Witnesses whose depositions are necessary receive mileage fees at the same rates as those allowed in Courts of First Instance.
- Section 20 makes hearings presumptively public:
- Hearings on applications are open to the public unless the Board determines otherwise for reasons of national security.
- Proceedings are recorded as the Board determines; the record becomes part of the application records.
- Section 21 requires Board finding to issue a permit:
- The Board issues a permit authorizing whole or any part of the service covered if it finds the applicant is fit, willing, and able to perform properly in conformity with the Act and relevant rules/regulations, and that the service is required by public convenience and necessity; otherwise, denial follows.
- Section 22 authorizes modifications/suspensions/revocations with procedures and emergency power:
- Upon petition/complaint or on its initiative, after notice and opportunity for hearing, the Board may alter/amend/modify/suspend a permit in whole or part if public convenience and necessity so require.
- The Board may revoke a permit in whole or part for intentional failure to comply with the Act, any order/rule/regulation, or any term/condition/limitation of the permit.
- For good cause, the Board may suspend, by order without notice and hearing, for a period not exceeding thirty days, whenever necessary to avoid serious or irreparable damage or inconvenience to the public.
- Interested persons may file protests/memoranda supporting or opposing the proposed alteration/amendment/modification/suspension/revocation.
- Section 23 restricts transfer:
- No permit may be transferred unless Board approval is obtained as consistent with public interest.
- Section 24 governs effective date and duration:
- A permit takes effect from the date specified in the permit and continues until suspended or revoked or until the Board certifies operations have ceased.
- If authorized service is not inaugurated within ninety days after authorization (or another Board-designated period), the Board may order that the permit cease to be effective to the extent of such service.
- No permit may be issued for more than twenty-five (25) years.
Civil Aeronautics Administration: organization and technical authority
- Section 25 places the Civil Aeronautics Administration under the administrative supervision and control of the Department of Commerce and Industry and establishes:
- One chief and one deputy chief known as Administrator and Deputy Administrator.
- Section 26 appoints the Administrator:
- Appointed by the President with consent of the Commission on Appointments,
- Receives annual basic salary of PHP 7,200, and additional salary of PHP 1,800 per annum subject to President approval.
- The Administrator is administrative head, has powers generally conferred upon bureau heads, administers laws relating to civil aviation in the Philippines, and submits written reports of office activities/transactions annually or as required to the department head.
- Section 27 appoints the Deputy Administrator by the President with Commission on Appointments consent and sets annual basic salary at PHP 6,000.
- Section 28 grants oath-taking authority:
- Besides Administrator and Deputy Administrator, chiefs of divisions and duly designated members of examining/investigating committees may administer oaths in official business.
- Section 29 provides permanent divisions as determined by administrative regulations or office orders approved by the Secretary of Commerce and Industry, including compensation rates and organizational details.
- Section 30 provides appointment rules and compensation for airmen-related duties:
- Officers/assistants/employees recommended by the Administrator are appointed by the Secretary of Commerce and Industry.
- The Administrator may assign personnel for study/training abroad within available funds.
- Rated and/or licensed airmen and other authorized personnel required for regular/frequent aerial flights receive, at the head’s discretion, an increase equivalent to fifty per centum of base pay, with the condition that total flying hours per month is not less than four hours.
- Employees working beyond usual office hours receive overtime additional compensation at least twenty-five per centum of regular salaries.
- Section 31 authorizes temporary personnel engagement by the Administrator with President approval for qualified consulting experts/other qualified persons with compensation fixed by the Administrator.
- Section 32 vests the Administrator with technical and operational authority and enumerates powers and duties, including:
- Enforcing the Act and rules/regulations; carrying out purposes/policies; primarily overseeing technical and operational phases of civil aviation.
- Designating and establishing civil airways, acquiring/controlling/operating/maintaining air navigation facilities along airways, and charting airways for publication including international aeronautical agency aeronautical charts/maps utilizing existing government agencies’ equipment/supplies/assistance as practicable.
- Issuing airman certificates specifying authorized capacity, only upon finding applicant properly qualified and physically able; the airman certificate contains terms/conditions/limitations necessary for safety in air commerce; and airman licenses are issued only to qualified persons who are citizens of the Philippines or citizens of countries granting similar rights/privileges to Filipinos.
- Issuing airworthiness certificates specifying duration, type of service permitted, and other terms/conditions/limitations required.
- Issuing air carrier operating certificates and establishing minimum safety standards for the air carrier; issuing only to aircraft registered under the Act.
- Issuing type certificates for aircraft, aircraft engine, propellers, and appliances.
- Inspecting/classifying/rating air navigation facilities and aerodromes and issuing certificates for those facilities and aerodromes, and determining suitability of foreign aerodromes/facilities/routes prior to Philippine registered aircraft foreign operations and thereafter as needed for safety.
- Issuing certificates for persons or civil aviation schools giving instruction in flying, repair stations, and other air agencies, and providing examination and rating.
- Promulgating safety rules/regulations on licensing and certification: airman certificates, operating/mechanical personnel licensing, type certificates, airworthiness certificates, air carrier operating certificates, air agency certificates, navigation facility and aerodrome certificates; air traffic routes; radio and aeronautical telecommunications and air navigation aids; aircraft accident inquiry; aerodromes (public and private), obstruction construction, aircraft registration, search and rescue, facilitation of air transport; aircraft operations (domestic and international, scheduled and non-scheduled); meteorology for civil aviation; rules of the air; air traffic services; rules preventing collision; aircraft identification; safe altitude rules; and other practices/methods/procedures necessary for safety, regularity, and efficiency.
- Enforcing rules/regulations and conducting investigations for violations, using subpoenas/subpoenas duces tecum to require attendance/testimony, production of books/papers/documents/exhibits/evidence, and taking depositions before authorized oath administrators; refusal to submit to reasonable investigation requirements is punishable under the Act.
- Investigating aircraft accidents and reporting facts/conditions/circumstances and probable causes to the Board, and making recommendations to prevent recurrence; requiring public release of reports/recommendations when accidents result in serious or fatal injury; and prohibiting accident report statements from being admitted or used as evidence in civil suits growing out of matters revealed in such report/hearing/investigation.
- Collecting and disseminating civil aeronautics information; exchanging information with foreign governments; and providing direct communication with international aeronautical agencies for technical/operational matters.
- Acquiring and operating aircraft necessary to execute Administration duties.
- Planning/designing/acquiring/establishing/constructing/operating/improving/maintaining/repairing required aerodromes and air navigation facilities.
- Imposing and fixing (except those mentioned in Section 40, paragraph twenty-five and otherwise provided), reasonable charges and fees for:
- Use of government aerodromes or air navigation facilities,
- Services rendered in rating aerodromes/air navigation facilities, civil aviation schools/instructions, aircraft repair stations, and aircraft radio and aeronautical telecommunications stations,
- Collection/receipt of charges and fees for aircraft registration and for issuance/renewal of licenses or certificates for aircraft/engines/propellers/appliances/airmen.
- Fixing reasonable charges for use of privately owned air navigation facilities and aerodromes.
- Imposing fines and/or civil penalties and making compromises.
- Adopting an aircraft registration system as provided in the Act.
- Participating actively in international aviation standardization and implementing international standards/recommended practices/policies as far as practicable.
- Exercising powers consistent with treaty obligations in civil aviation matters.
- Cooperating/assisting/coordinating with government research/technical agencies on aircraft/engine/propeller/appliance/air navigation facilities research studies; while not authorizing duplication of existing governmental laboratory research/activities/technical studies.
- Designating prohibited/danger areas in consonance with international aeronautical requirements and national security.
- Issuing, denying, canceling, or revoking certificates, permits, or licenses pertaining to aircraft/airmen/air agencies; and providing an appeal route:
- Any order denying/canceling/revoking may be appealed to the Board,
- Board decisions are final,
- Appeal must be within fifteen days from date of notification.
- Administering and managing Manila International Airport and all government-owned aerodromes except those controlled/operated by the Armed Forces of the Philippines, including powers to plan/design/construct/equip/expand/improve/repair/alter aerodromes/structures/air navigation facilities; enter contracts; acquire/hold/purchase/lease property/right of ways/easements; execute concessions/concession rights on space or property for operation purposes with terms the Administrator deems proper, but exclusive use of any landing strip or runway may not be granted to any person; determine aircraft types allowed for safety; and prescribe/enforce aerodrome rules consistent with existing laws for public safety/health/welfare.
- Determining/fixing/imposing/collecting/receiving landing fees, parking space fees, royalties on aviation gasoline/oil/lubricants spare parts/accessories/supplies/tools and other royalties/fees/rentals for property under Administration management/control.
- Granting permits to civil aircraft or persons to carry instrument or photographic device for aerial photography or taking pictures or sketching parts of the Philippines.
- Section 32 defines (within its subsection) key fee concepts:
- “Landing fees” are charges for use of landing strip or runway by any aircraft landing or taking off at an aerodrome.
- “Terminal fees” are charges for parking at/near ramp/terminal area/building for loading/unloading passengers/cargo.
- “Royalties” are charges based on gross business or sales, or gross or net profit.
- Section 33 requires an annual report to the department head with information/data valuable to civil aeronautics development and recommendations for additional legislation.
Aircraft registration, nationality, recording
- Section 34 provides eligibility for aircraft registration:
- No aircraft is eligible for registration unless owned by a citizen/citizens of the Philippines and not registered under the laws of any foreign country.
- The certificate of registration is conclusive evidence of nationality for international purposes but not in proceedings under the laws of the Republic of the Philippines.
- The certificate is conclusive evidence of ownership except in proceedings where ownership is or may be at issue.
- Section 35 requires applications for registration:
- Applications must be in writing, signed and sworn to by the aircraft owner,
- Must state the date and place of filing, aircraft specifications/construction/technical description, and other information the Administrator requires in required manner/form by regulations.
- Section 36 requires issuance:
- If the Administrator finds the aircraft eligible, the Administrator registers the aircraft and issues a certificate of registration to the owner.
- Section 37 allows revocation:
- Any certificate of registration may be revoked by the Administrator for any cause rendering the aircraft ineligible.
- Section 38 makes conveyances effective only upon recording:
- No conveyance affecting title or interest in any civil aircraft of Philippine registry (or portion thereof) is valid against any person other than the conveyance maker and listed successors/heirs/assignees/etc., and any person with actual notice, until the conveyance is recorded in the Civil Aeronautics Administration.
- Every recorded conveyance is valid against all persons.
- Instruments required by the Act take effect from the date of record in the Administration books, not from execution.
- Section 39 requires conveyance form compliance:
- A conveyance cannot be recorded unless it meets requirements for registration of documents affecting land.
- The conveyance must state the interest of the person making it (or vendor’s interest in conditional sale) and the interest transferred.
- Section 40 requires method and indexing of recordings:
- The Administrator records conveyances delivered in order of receipt in files indexed to show identifying aircraft description, parties, instrument date and record date/time, interests transferred, if as security the amount and maturity date of indebtedness, and all estates/mortgages/liens/leases/orders/encumbrances and decrees/instruments/attachments/entries affecting aircraft and other matters properly determined under the Act.
- Section 41 governs airworthiness certificate applications where ownership is not recorded:
- Applications for issuance or renewal of an airworthiness certificate for aircraft whose ownership has not been recorded must include ownership information sufficient for the Administrator to show who has property interests and the nature/extent of such interest.
Violation and penalties for civil aviation acts
- Section 42 establishes specific penalties:
- Engaging in air commerce without a permit issued by the Board is punished by a fine not exceeding PHP 5,000 or imprisonment not more than 1 year, or both, at the court’s discretion.
- A person engaging in air commerce on approval date may continue until the Board passes on the permit application, which must be filed within 120 days after approval under Chapter IV.
- Air carriers violating any term/condition/limitation in a permit are fined not exceeding PHP 1,000 for each violation.
- Air carriers violating Board orders/rules/regulations are fined not exceeding PHP 1,000 for each violation.
- The Act imposes fines not exceeding PHP 1,000 for each offense for specified rate and passenger benefits misconduct, including:
- Discounts