Definitions
- Key terms are defined to guide application and interpretation, including but not limited to:
- Administrator: Civil Aeronautics Administrator.
- Aerodrome: Land or water area for aircraft movements including buildings and equipment.
- Air carrier: Person engaging in air transportation or air commerce.
- Aircraft: Any device designed or used for flight in the air.
- Airman: Individuals involved in navigation, maintenance, inspection, or air traffic control.
- Civil Aircraft: Any aircraft other than public government aircraft.
- Domestic and Foreign air carriers and commerce are defined based on citizenship and geographic scope.
- Permit: Certificate of Public Convenience and Necessity.
- These definitions establish the legal framework for all further provisions.
Declaration of Policies
- Promotes development and utilization of the Philippines' air potential.
- Encourages a safe, efficient, and economically sound air transportation system suited to domestic and foreign commerce, postal service, and national defense.
- Ensures fair competition among air carriers.
- Emphasizes safety and efficient service at reasonable rates without discrimination.
- Encourages the growth of civil aeronautics.
Composition and Functioning of the Civil Aeronautics Board
- Composed of the Secretary of Commerce and Industry (Chairman), Civil Aeronautics Administrator, Commander of Philippine Air Force, and two presidential appointees.
- Members serve at the President’s pleasure, receive per diem, and may not have financial interests in civil aeronautics enterprises.
- Quorum is three members; majority vote needed for decision; tie votes go to the President.
- Board maintains an office in Manila but may hold hearings elsewhere.
- Has a permanent secretary (a lawyer) and stenographer; may also hire temporary consultants.
- Submits annual reports to the President with data and legislative recommendations.
Powers and Duties of the Civil Aeronautics Board
- Regulates economic aspects and supervises air carriers' property, equipment, and franchises.
- Issues, modifies, suspends, or revokes permits and Certificates of Public Convenience and Necessity, including governing foreign air carrier permits subject to presidential approval.
- Fixes reasonable rates, charges, and fares, assessing their justness and impact on public interest and carrier viability.
- Approves charters, consolidations, mergers, and acquisitions involving air carriers.
- Investigates air carrier management, requires sworn reports and contracts.
- Prescribes forms for accounts and preserves records.
- Monitors stock and interest holdings within the air commerce sector.
- Conducts investigations into violations and imposes remedies.
- Issues subpoenas, compels testimony, and reviews administrative decisions of the Administrator related to safety and certification.
- Coordinates with foreign affairs on air agreements.
Certificate of Public Convenience and Necessity (Permit)
- Authorizes an individual or entity to engage in air commerce and transportation.
- Grants privileges with attached reasonable terms to serve public interest; does not confer ownership or exclusive rights over airspace or facilities.
- Specifies routes, service details, schedules; any change requires Board approval.
- Issued primarily to Philippine citizens for domestic air commerce, subject to constitutional and treaty exceptions.
- Proceedings for issuing permits are regulated for justice and efficiency; Board may delegate hearing duties.
- Applications require public notice and may elicit support or opposition memoranda.
- Failure to appear may lead to ex parte proceedings.
- Board issues permits if applicant is fit and service is needed; permits can be modified, suspended, or revoked for cause.
- Permits are non-transferable without Board approval and effective for specified durations not exceeding twenty-five years.
Civil Aeronautics Administration Organization and Leadership
- Placed under the Department of Commerce and Industry, headed by the Administrator and Deputy Administrator, both presidential appointees with specified compensation.
- Officers can administer oaths in official functions.
- Contains permanent divisions as determined by regulations, and employs necessary personnel.
- Administrator empowered to assign personnel for training abroad and authorize overtime compensation.
Powers and Duties of the Civil Aeronautics Administrator
- Enforces the Act and related rules, focusing on technical and operational civil aviation issues.
- Designates civil airways and manages air navigation facilities.
- Issues various certificates including airman’s certificates, airworthiness certificates, operating certificates, and type certificates; citizenship and qualification requirements apply.
- Inspects and rates air navigation facilities and aerodromes, including foreign facilities used by Philippine aircraft.
- Licensing of civil aviation schools, repair stations, and air agencies.
- Promulgates safety-related rules and regulations covering air traffic, operations, accident inquiry, meteorology, and aircraft registration.
- Investigates violations, subscribes to subpoena powers, and sanctions non-compliance.
- Investigates aircraft accidents, reports facts and probable causes, and recommends preventive measures; publicizes serious or fatal accident reports.
- Collects and disseminates civil aeronautics information and liaises with international agencies.
- Operates government aerodromes including Manila International Airport, with powers to plan, build, contract, acquire property, and regulate aerodrome use.
- Imposes and collects reasonable fees for services, usage of facilities, aircraft registration, and certification services.
- Grants permits for aerial photography within the Philippines.
Aircraft Registration and Records
- Only Philippine citizens may register aircraft, which must not be registered abroad.
- Registration certificates serve as conclusive evidence of nationality and ownership.
- Applications require detailed aircraft specifications and are sworn statements.
- Certificates may be revoked if eligibility ceases.
- Conveyances affecting aircraft title must be recorded with the Civil Aeronautics Administration to be valid against third parties.
- Conveyance documents must follow land registration form standards and specify interests conveyed.
- Recording follows chronological order with indexed files.
- Unrecorded ownership information must be disclosed during airworthiness certificate applications.
Violations and Penalties
- Operating air commerce without a permit: fine up to ₱5,000, imprisonment up to one year, or both.
- Violations of permit terms, Board orders, or regulations: fines up to ₱1,000 per offense.
- Prohibitions include unauthorized discounts, unjust rates, unauthorized free passes except for enumerated persons.
- Operating aircraft without proper safety compliance or certificates carries fines and imprisonment.
- Unauthorized mergers, control acquisitions, or changes in routes without approval incur penalties.
- Flying unregistered aircraft or employing uncertified airmen subject to fines and possible certificate revocation.
- Obstruction or interference with Board, Administration, or air navigation results in fines or imprisonment.
- Forgery or use of fraudulent certificates penalized similarly.
- Managers or persons in charge held liable for unlawful acts by their firms or corporations.
- Administrator authorized to file complaints for penalties.
General Penalties
- Any non-specific violation of the Act or its regulations may be fined up to ₱500 per offense.
- The Board may compromise penalties; non-compliance may result in permit suspension.
Orders and Judicial Review
- Board orders, decisions, and regulations may be enforced by civil remedies.
- Emergency orders related to air navigation safety may be issued immediately without formal proceedings but must be followed by prompt hearings.
- Parties may petition for reconsideration within fifteen days citing specific grounds.
- Board decisions become final after fifteen days unless appealed to the Supreme Court via certiorari.
- The Supreme Court may review Board decisions on lack of evidence, legality, or jurisdiction.
- Appeals and review petitions follow procedures prescribed by the Supreme Court.
Fees and Receipts
- Fixed fees for applications, certificates, registrations, and certifications ranging from ₱0.50 to ₱250 depending on the service.
- Fees for services not specified by law may be established with department head approval.
- All fees collected form a revolving fund dedicated to the construction, maintenance, and improvement of government air navigation facilities.
- Receipts from Manila International Airport operations are allocated to a dedicated revolving fund for airport operations and related expenses.
Miscellaneous Provisions
- Unconstitutional provisions do not affect the validity of the remaining Act.
- Repeals and modifies prior laws and executive orders inconsistent with this Act.
- Transfers existing personnel and appropriations to the reorganized Civil Aeronautics Administration.
- Appropriates ₱60,000 for Board needs and ₱60,000 for Administration needs.
- The Act takes effect immediately upon approval.