Law Summary
Declaration of Policy
- State policy to provide safe and efficient air transport and regulatory services.
- Creation of a civil aviation authority to oversee restructuring and regulation of civil aviation.
Key Definitions
- "Aerial work," "Aerodrome," "Aircraft," "Aircraft accident," "Airman," "Air carrier," among others, defined with detailed descriptions.
- Definitions cover technical, operational, and regulatory terms used in civil aviation.
Creation of the Authority
- Establishment of the Civil Aviation Authority of the Philippines (CAAP) as an independent regulatory body.
- Abolition of the Air Transportation Office (ATO).
- CAAP attached to the Department of Transportation and Communications (DOTC) for policy coordination.
- The Director General appointed by the President to head the Authority for a four-year term, renewable once.
Board Composition and Governance
- Seven-member Board including Secretaries of DOTC, Finance, Foreign Affairs, Justice, Interior and Local Government, Labor and Employment.
- Secretary of DOTC acts as Chairman; Director General is Vice Chairman.
- Board members must divest interests in air commerce-related businesses.
- Prohibition on acceptance of employment by Authority personnel with regulated entities for one year post-service.
- Quorum and voting rules established.
Qualifications and Compensation
- Director General must be a Filipino, at least 35 years old, with at least five years’ management experience in aviation.
- Board members receive per diems; existing ATO personnel given preference for Authority positions.
- Authority enjoys fiscal autonomy; funds from fees used solely for operations.
Tax and Duty Exemptions
- Importation of equipment and supplies for Authority use exempt from taxes and duties.
- Authority exempt from various taxes including capital gains, documentary stamps, and local taxes.
Fees and Charges
- Authority adopts schedules of fees and charges after stakeholder consultations.
- Fee revisions limited to once every three years.
Organizational Structure
- Permanent offices established including Air Traffic Service, Air Navigation Service, Aerodrome Development and Management Service, and Administrative and Finance Service.
- Authority may create additional offices as needed.
Powers and Functions of the Authority
- Corporate powers: sue and be sued, enter contracts, raise funds, own property, receive donations, invest funds.
- Regulatory powers include issuing certificates, enforcing safety standards, regulating operations, and airport security.
- Enforcement powers include imposing fees, penalties, and conducting investigations.
Role and Powers of the Director General
- Chief executive officer with technical and operational oversight.
- Authority to issue certificates (airman, airworthiness, air operator), conduct investigations, enforce regulations.
- Power to administer oaths, issue subpoenas, and impose sanctions.
- May validate foreign civil aviation authority actions subject to conditions.
Board Powers
- Policy guidance, oversight of Authority operations, organizational decisions.
- Exercise appellate jurisdiction over Director General’s decisions.
- Promulgate rules and regulations concerning air commerce safety and operations.
- Set fees and charges; conduct public hearings.
Inspection and Safety
- Director General authorized to inspect aircraft, aerodromes, and air operators.
- Power to prevent flight operations if safety compromised.
- Establishment of Flight Standards Inspectorate Service.
Aircraft Registration and Nationality
- System established for national registration of aircraft and related interests.
- Registration eligibility based on citizenship or ownership requirements.
- Certificates of registration confer Philippine nationality.
- Recording system for conveyances and interests affecting aircraft titles.
Aviation Safety
- Director General to promote flight safety through rules conforming to ICAO standards.
- Authority to certify airmen, issue airworthiness certificates, and regulate air operators.
- Examine and rate aviation schools and approved maintenance organizations.
- Authority to issue airport certificates and regulate air navigation facilities.
- Duty of air carriers and airmen to maintain safety compliance.
Prohibitions and Enforcement
- Unlawful to operate aircraft without proper certificates, for unlicensed airmen to serve, or for unlicensed air operators to operate.
- Authority to impose liens for unpaid fees or fines.
- Police authority within airport premises in coordination with other law enforcement agencies.
- Regulation of building heights near airports and prevention of interference with air navigation.
Penalties
- Administrative fines and penalties for violations, ranging from monetary fines to suspension and revocation of certificates.
- Criminal penalties, including imprisonment and fines, for serious offenses such as operating without certificates, falsifying documents, interfering with air navigation, and endangering aircraft safety.
- Penalties adjusted for inflation every four years.
Transitory Provisions
- Abolition of ATO and transfer of all functions, assets, personnel to the Authority.
- Transitional arrangements for personnel benefits and retirement.
- Organizational setup to be completed within six months.
Miscellaneous
- Annual reports to be submitted to the President and Congress.
- Oversight by a Congressional Oversight Committee for five years.
- Saving clause preserving existing rights and privileges unless inconsistent.
- Rules and implementing regulations to be adopted within 60 days.
- Repealing provisions for laws inconsistent with the Act.
- Effectivity upon publication.