Definitions and Scope
- Key terms are specifically defined to govern interpretation: Administrator, Aerodrome, Aeronautics, Air carrier, Aircraft, Airman, Board, Citizen of the Philippines, Civil Aircraft, Foreign Air Carrier, Public Aircraft, Permit, Person, among others.
- Definitions cover technical aspects of aviation and entities related to air commerce.
Declaration of Policies
- Promote development and utilization of Philippine air potential.
- Encourage air transportation systems adapted to commerce, postal service, and national defense.
- Regulate air transportation for safety, economic soundness, and fair competition.
- Foster adequate and economical service with reasonable charges.
- Promote safety of flight and encourage civil aeronautics development.
Civil Aeronautics Board (CAB) Composition and Operations
- CAB composed of Secretary of Commerce and Industry (Chairman), Civil Aeronautics Administrator, Philippine Air Force Commander, and two presidential appointees.
- Members hold office at president's pleasure; no pecuniary interest allowed in civil aeronautics enterprises.
- Principal office in Manila; quorum requires chairman plus two members.
- Permanent secretary (lawyer) records proceedings; stenographer and other staff employed.
- Temporary experts/consultants may be employed with presidential approval.
- Annual report to the President including data and legislative recommendations.
CAB Powers and Duties
- Regulate economic aspects and supervision of air carriers, their properties, and franchises.
- Issue, amend, suspend, or revoke permits and Certificates of Public Convenience and Necessity (CPCN).
- Fix and approve reasonable air carrier rates, charges, and fares considering public interest and economic factors.
- Authorize domestic and international charters and special air services.
- Approve capital changes, equipment sales, mergers, and acquisitions involving air carriers.
- Investigate air carrier management and require detailed reports under oath.
- Require production and filing of contracts, accounts, and records.
- Investigate violations and impose penalties or fines.
- Issue subpoenas and require witness testimony.
- Review or appeal decisions of the Administrator regarding airmen and aircraft grounding or certificate actions.
- Consult Department of Foreign Affairs on foreign air agreements.
Certificate of Public Convenience and Necessity (CPCN)
- Permit issued by CAB permitting engagement in air commerce or transportation domestically or internationally.
- Permits have specific terms including routes, schedules, and services; changes require CAB approval.
- No proprietary rights granted over airspace or navigation facilities.
- Permits may be modified, suspended, or revoked for public interest or noncompliance.
- Citizenship requirement: domestic permits issued only to Philippine citizens, unless treaty provisions provide otherwise.
- CAB proceedings for permit applications are governed by CAB rules, may include hearings, notices, and depositions.
- Failure to appear may result in ex parte proceedings.
Civil Aeronautics Administration (CAA) Organization
- Under Department of Commerce and Industry administrative supervision.
- Headed by Administrator and Deputy Administrator appointed by the President with Commission on Appointments consent.
- Administrator oversees enforcement of laws and regulations; annual reports required.
- Division chiefs and personnel appointed as needed, with provisions for temporary experts.
Powers and Duties of the CAA Administrator
- Implement purposes and policies of the Act.
- Establish and control civil airways and air navigation facilities.
- Issue airman certificates, airworthiness certificates, and air carrier operating certificates with safety standards.
- Inspect and certify navigation facilities and aerodromes.
- License aviation schools, repair stations, and air agencies.
- Promulgate safety rules on personnel licensing, aircraft, navigation, operations, accident inquiry, etc.
- Investigate violations and aircraft accidents with recommendations to CAB.
- Exchange aeronautical information internationally.
- Operate government aerodromes and Manila International Airport with authority to manage facilities, contracts, fees, and property.
- Issue permits for aerial photography within the Philippines.
Aircraft Registration
- Only Philippine citizens may register aircraft in the Philippines, no foreign registration permitted concurrently.
- Registration applications must include detailed aircraft specifications.
- Certificates of registration issued by the Administrator; may be revoked if eligibility is lost.
- Conveyances affecting aircraft ownership must be recorded with CAA to be valid against third parties.
Violations and Penalties
- Operating air commerce without a permit punishable by fines up to PHP 5,000 or imprisonment up to one year, or both.
- Violations of permit terms, Board orders, or rules incur fines up to PHP 1,000 per offense.
- Specific offenses include unauthorized discounts, unjust rates, unlicensed airmen, unregistered aircraft operation, unauthorized mergers or acquisitions, and interference with Board duties.
- Penalties increase with repeated offenses and may result in revocation of certificates or permits.
- Interfering with air navigation or forging certificates carries fines up to PHP 5,000 and/or imprisonment.
- Organizational officers may be held personally liable for unlawful acts.
Enforcement, Review, and Judicial Process
- CAB orders and decisions enforceable by civil remedies.
- Orders take effect as prescribed; emergency safety orders may be immediate without prior hearing.
- Parties may petition for reconsideration within 15 days.
- CAB decisions become final after 15 days unless appealed to the Supreme Court by certiorari.
- Supreme Court may review CAB decisions for lack of evidence, legality, or jurisdiction.
- General penalty for unspecified violations is a fine not exceeding PHP 500.
- CAB may compromise penalties; failure to comply may result in suspension of permits.
Financial Provisions
- Fees imposed for applications, certificates, registration, and official document certifications.
- Fees collected form a revolving fund for air navigation facilities and Manila International Airport operations.
Miscellaneous Provisions
- Severability clause ensures invalidity of any part does not affect the rest of the Act.
- Repeal or modification of conflicting laws and transfer of personnel and unexpended appropriations to reorganized entities.
- Appropriations authorized for personnel and administrative expenses.
- The Act took effect upon approval in 1952.