Creation of Barrios in Bonifacio, Misamis Occidental

Core terms and defined concepts

“Aerial work” means aircraft operations used for specialized services such as agriculture, construction, photography, surveying, observation and patrol, search and rescue, aerial advertisement, etc.
“Aerodrome” means an airport and any defined area on land or water (including buildings, installations, and equipment) intended for arrival, departure, and surface movement of aircraft.
“Air carrier or operator” means a person who undertakes, directly or indirectly, or by lease or other arrangement, to engage in air transportation services or air commerce.
“Air commerce or commercial air transport operation” covers scheduled or non-scheduled air transport for pay or hire, navigation of aircraft in furtherance of business, navigation from one place to another for business operations, and transport of passengers, cargo, or mail for remuneration or hire.
“Aircraft” refers to civil aircraft only and does not include State or public aircraft.
“Aircraft accident” is an occurrence associated with aircraft operation occurring between boarding for flight and disembarkation, involving death or serious injury to any person or substantial damage to the aircraft.
“Aircraft incident” is an occurrence other than an accident that endangers safety of the aircraft or could endanger it if it occurred again.
“Authority” refers to the Philippine Civil Aviation Authority created under the Act and includes the Board of Directors and/or Director General depending on context.

Authority creation and prior agency abolition

Section 4 creates the Authority as an independent regulatory body with quasi-judicial and quasi-legislative powers and corporate attributes, attached to the Department of Transportation and Communications for policy coordination.
The Air Transportation Office (ATO) created under Republic Act No. 776, as amended is abolished.
The Act maintains the powers and functions of the Civil Aeronautics Board (CAB) under Republic Act No. 776.

Director General leadership and tenure

The Authority is headed by a Director General of Civil Aviation (“Director General”).
The Director General is appointed by the President of the Philippines, is responsible for civil aviation in the Philippines, and administers the Act.
The Director General serves a tenure of four (4) years.
The Director General’s appointment may be extended for another non-extendible term of four (4) years.
The Director General may be removed for cause in accordance with Civil Service Commission rules.
The Director General is responsible for the Authority’s powers and duties and has control over all Authority personnel and activities.
The Director General must be a Filipino citizen, at least thirty-five (35) years of age, of good moral character and unquestionable integrity, with recognized competence, and a degree holder with at least five (5) years supervisory or management experience in aviation.

Board composition, voting, and meetings

Section 5 vests the Authority’s corporate powers in a Board of seven (7) members.
The Secretary of DOTC is Chairman ex officio.
The Director General is Vice Chairman.
The other Board members are the Secretary of Finance, Secretary of Foreign Affairs, Secretary of Justice, Secretary of the Interior and Local Government, and Secretary of the Department of Labor and Employment.
In the absence of any Director under subsections (c) to (g), the Director’s department designates the next in rank to act as Director.
Section 8 requires at least four (4) Board members for quorum.
Adoption of any Board rule, ruling, order, resolution, decision, or other act requires the majority vote of three (3) members when quorum is present.
Section 10 mandates regular Board meetings once a month.
Special Board meetings may be held upon call of the Chairman or initiative of four (4) members.
Board internal rules of procedure for meetings are prescribed by the Board.
Board meetings provide per diems for members for each meeting actually attended.
Per diems are determined by Board resolution, subject to applicable Commission on Audit guidelines.
Section 11 ties per diem determination to existing COA-compliant guidelines.

Conflicts, restrictions, and employment limitations

Section 6 prohibits Board members and their relatives within the fourth civil degree of consanguinity or affinity from holding any interest as investor, stockholder, officer, or director in any company or entity engaged in air commerce (scheduled or unscheduled; passenger or cargo; domestic or international) or in support services to air commerce (including general sales agencies, travel agencies, cargo forwarders, ground handling, catering, fuel servicing, aircraft maintenance, etc.).
Board members must divest all prohibited interests through sale or legal disposition upon assumption of office.
Any violation of the conflicts rule subjects the member to removal for cause and administrative, civil, or criminal prosecution under applicable laws.
Section 7 prohibits Board members and Authority employees from accepting employment or entering service contracts with entities regulated by the Authority until the expiry of one (1) year from the termination of their appointment (whether by resignation, revocation, or otherwise).

Organizational setup and principal office

Section 13 sets the Authority’s principal office in Metro Manila.
The Authority may hold hearings at times and places within the Philippines as provided by written order.
Section 33 requires the Board, within fifteen (15) days from appointment and acceptance by all Board members and the Director General, to meet to draw up the organizational structure.
The Board must agree on the final organizational structure not later than six (6) months from the Act’s effectivity.
Besides offices created in Sections 36 and 40, the Board must establish permanent offices:
Air Traffic Service; Air Navigation Service; Aerodrome Development and Management Service; and Administrative and Finance Service.
The heads of the permanent offices must be selected and appointed from the rank and file employees of the concerned services, subject to qualification standards of the Board and the Civil Service Commission.

Capital, fiscal autonomy, taxes, and fees

The Authority has an authorized capital stock of PHP 50,000,000,000.00, fully subscribed by the Republic of the Philippines.
National Government subscription is paid through: (1) unexpended balances of appropriations in the current General Appropriations Act and other laws upon approval, pertaining to, held or used by the ATO; (2) the value of existing assets of the ATO determined by independent qualified appraisal within six (6) months from Act effectivity, after deducting ATO loans and other liabilities at the takeover time; and (3) amounts appropriated from time to time from National Treasury funds, including outlays from the National Government infrastructure program.
Section 15 grants fiscal autonomy.
All moneys earned by the Authority from fees, charges, dues, assessments, and fines the Authority is empowered to collect or levy under the Act must be used solely to fund Authority operations.
Utilization of Authority funds is subject to examination by the Congressional Oversight Committee.
Section 16 exempts the Authority from taxes, customs, and tariff duties on importations of equipment, machineries, spare parts, accessories, and other materials including supplies and services used solely and exclusively for Authority operations not obtainable locally, including exemption from direct and indirect taxes, wharfage fees, and other charges and restrictions despite contrary laws.
Section 16 also exempts Authority obligations and income derived therefrom (including with private international banking and financial institutions) from all taxes principal and interest, and exempts the Authority from capital gains tax, documentary stamp tax, real property estate tax, and all other local government imposed taxes and fees.
Section 17 requires the Authority to adopt and publish a schedule of fees and charges.
Before adopting the schedule of fees and charges, the Authority must hold public hearings or consultative meetings with industry stakeholders.
The Authority must not revise its schedule of fees and fines more often than once every three (3) years.
Section 18 requires the Board, within six (6) months from Act effectivity, to determine a new schedule of salaries subject to existing compensation laws.
The Board must determine and fix compensation and fringe benefits of employees holding technical positions not common to other government agencies, to be specified in the Implementing Rules and Regulations.
Section 19 transfers to the Authority the ATO’s funds, appropriations, records, equipment, and property.
Section 20 mandates an annual report to the President, Senate, and House of Representatives at the close of each calendar year.

Policies guiding Authority decisions

In exercising powers and duties, the Authority must consider public interest and public convenience and necessity in:
(1) developing and utilizing the Philippines’ air potential;
(2) encouraging development of an air transportation system adapted to foreign and domestic commerce;
(3) regulating air transportation to support sound economic condition and improve air carrier relations;
(4) ensuring safety, quality, reliability, and affordability of air transport services for the riding public; and
(5) encouraging a viable and globally competitive Philippine aviation industry.

Board powers: rules, appeals, and charges

Section 24 gives the Board general powers including policy guidance, ensuring proper performance of Authority functions, deciding objectives/strategies/policies, and determining organizational structure and HR management systems based on merit and fitness.
The Board exercises appellate powers over decisions, findings, and rulings of the Director General.
The Board may issue subpoena ad testificandum or subpoena duces tecum requiring attendance and testimony and production of books, papers, contracts, agreements, and other documents, verified under oath by the person in custody.
The Board may order taking of depositions in pending proceedings or investigations.
The Board may use other Philippine government agencies’ services, equipment, personnel, and facilities on a reimbursable basis and cooperate similarly in establishing and using services, equipment, and facilities.
The Board may invest Authority funds not immediately required for operations or intermediate obligations in business ventures, or in secured notes, government securities, and other negotiable instruments meeting Board guidelines; funds must be deposited in commercial and universal banks designated by the Board.
The Board must promulgate rules and regulations on safety in air commerce, including rules covering airmen licensing and certificates, aircraft 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 inquiries, aerodromes (public and private-owned), obstructions to aerodromes, building heights, antennae and other edifices, aircraft registration, search and rescue, facilitation of air transport, aircraft operations (domestic and international, scheduled and non-scheduled), meteorology related to civil aviation, rules of the air, air traffic services, prevention of collision, aircraft identification, safe flight altitudes, and other safety-related practices and procedures needed for safety, regularity, and efficiency in air commerce and air navigation.
The Board may impose and fix reasonable charges and fees for use of government aerodromes or air navigation facilities, for services rendered by the Authority in serving any aerodrome or air navigation facilities, civil aviation schools and instructors, aircraft repair stations, and aircraft radio and aeronautical telecommunications stations.
The Board sets reasonable charges for use of privately-owned air navigation facilities and aerodromes.
The Board must adopt a system for registration of aircraft.
The Board must determine and fix landing fees, parking space fees, and royalties on sales or deliveries based on aviation gasoline, oil and lubricants, spare parts, accessories and supplies, tools, other royalties, fees, or rentals for use of Authority-managed property.
The Board approves the annual and supplementary budget plan and utilization of retained revenue.
The Board may grant exemption from observing rules or regulations issued under the Act upon its own initiative, recommendation of the Director General, or application by a private person, provided the exemption is not prejudicial to flight safety.
The Board must formulate rules concerning compliance by carriers and the public for safe transport of goods and materials by air pursuant to international standards or the Chicago Convention Annexes.
In coordination with the appropriate government agency tasked to provide airport security, the Board must prescribe reasonable regulation requiring passengers and property intended to be carried in the aircraft cabin in commercial air transport to be screened using weapon-detecting procedures or facilities operated by air operator or foreign operator employees or agents prior to boarding.
The Board must prescribe other reasonable security rules and regulations requiring methods and procedures to protect persons and property aboard aircraft operating in commercial air transport against acts of criminal violence and aircraft piracy.
Where practicable, the Board must require uniform procedures for inspection, detention, and search of persons and property in domestic commercial air transport and international commercial air transport to ensure safety and courteous, efficient treatment by air operators and their agents and employees.

Rule issuance and continuing applicability

Section 25 requires the Board, in consultation with the Director General, to issue and provide for enforcement of orders, rules, and regulations necessary to give effect to the Act.
Rules and regulations must be formally promulgated and periodically reviewed and updated under the Administrative Code of the Philippines and aligned with ICAO Standards and Recommended Practices.
Pending promulgation of new rules and regulations, existing ATO rules and regulations continue to apply.
Section 26 mandates that the Board, after consultation with the Director General and after public hearing, determines, fixes, imposes, collects, or receives reasonable charges, fees, dues, or assessments in respect of aviation certificates, licenses, other authorizations, and Authority services.
Charges and fees must be formally promulgated under the Administrative Code requirements.
Pending promulgation of new schedules, existing ATO charges and fees continue to apply.
Section 27 authorizes the Board to authorize the Director General to issue or amend rules of procedures and practice required under the Act or to issue and adopt rules and regulations and other issuances of the ICAD.
Pending promulgation of new procedural rules, existing ATO rules of procedure and practice continue to apply.

Board appellate process constraints

Section 28 requires that the Board hear appeals properly taken by an interested party from a Director General decision, judgment, or order.
The Board may review, confirm, modify, revise, amend, or reverse Director General decisions or orders.
The Board may confirm, remit, mitigate, increase, or compromise fines imposed by the Director General.
The Board may review, confirm, modify, revise, amend, or reverse Director General liens on personal and real properties of entities, persons, corporations, or partnerships in default or who failed to perform obligations under Act rules, or who failed to pay fines or other pecuniary penalties.
The Director General may not participate in hearing and adjudication of an appealed case when the subject is a judgment or decision rendered by his office.
Modification or reversal of the Director General’s decision requires four (4) concurring votes of Board members who actively participated in deliberation.

Director General certification, enforcement, and orders

Section 35 makes the Director General the Authority’s chief executive and operating officer and vests primary authority over the technical and operational phase of civil aviation matters.
The Director General enforces rules and regulations issued pursuant to the Act.
The Director General designates and establishes civil airways, acquires, controls, operates, maintains navigation facilities along airways, and charts and arranges publication of airways including aeronautical charts or maps using existing government agencies’ equipment, supplies, or assistance as far as practicable.
The Director General issues airman’s certificates specifying the capacity authorized, issued only upon finding the applicant is properly qualified and physically able.
Airman’s certificates contain terms, conditions, and limitations needed for safety in air commerce.
An airman’s license is issued only to qualified persons who are citizens of the Philippines or qualified citizens of countries granting similar rights and privileges.
The Director General issues airworthiness certificates prescribing duration, type of service, and other terms and conditions needed.
The Director General issues air carrier operating certificates based on minimum safety standards for the air carrier, issued only to aircraft registered under the Act.
The Director General issues type certificates for aircraft, aircraft engines, propellers, and appliances.
The Director General inspects, classifies, and rates air navigation facilities and aerodromes for suitability and issues certificates for such facilities and aerodromes.
The Director General determines suitability of foreign aerodromes, air navigation facilities, and air routes for Philippine-registered aircraft prior to operation and from time to time thereafter in the interest of safety.
The Director General issues certificates of persons or civil aviation schools giving instruction in flying, repair stations, and other air agencies, including examination and rating thereof.
The Director General enforces rules and regulations and conducts investigations for violations.
Investigations may use subpoena ad testificandum or subpoena duces tecum, requiring attendance, testimony, production of books/papers/documents/exhibits/evidence, and/or taking depositions before persons authorized to administer oath.
Refusal to submit reasonable requirements of the investigation committee is punishable under the Act.
The Director General collects and disseminates information on civil aeronautics and development of air commerce and aeronautical industry, exchanges such information with foreign governments, and provides direct communication with international aeronautical agencies on technical or operational matters.
The Director General acquires and operates aircraft necessary to execute Authority duties under the Act.
The Director General plans, designs, acquires, establishes, constructs, operates, improves, maintains, and repairs aerodromes and other air navigation facilities.
The Director General collects and receives charges and fees for aircraft registration and for issuance and/or renewal of licenses or certificates for aircraft, engines, propellers, appliances, and airmen under the Act.
The Director General imposes fines and/or civil penalties.
The Director General participates in international standardization development and implements as far as practicable ICAO/prescribed international standards and recommended practices.
The Director General exercises functions consistent with obligations assumed by the Republic under civil aviation treaties, conventions, or agreements.
The Director General cooperates with government research and technical agencies on design, materials, workmanship, construction, performance, maintenance, and operation of aircraft and related facilities, without authorizing duplication of laboratory research and technical studies of existing government agencies.
The Director General designates prohibited and danger areas consistent with international aeronautical agencies’ requirements and national security.
The Director General may issue, deny, suspend, cancel, or revoke certificates and licenses pertaining to aircraft, airmen, and air agencies.
Denials, suspensions, cancellations, and revocations are appealable to the Board, whose decision is final within fifteen (15) days from notification.
The Director General grants authorization for civil aircraft or persons to carry instruments or photographic devices for aerial photography or picture-taking or sketching of parts of the Philippines.
The Director General may, upon Board resolution, enter into and execute contracts of any kind with persons, firms, or public or private corporations.

Enforcement and legal service functions

Section 36 requires the Board to establish a permanent Enforcement and Legal Service composed of in-house counsels and necessary support staff.
The Enforcement and Legal Service provides legal assistance and support to the Director General and the Authority in exercising the Act’s quasi-legislative and quasi-judicial power.
Subpoena issuance and administrative sanction imposition are within the exclusive determination and recommendation of the Enforcement and Legal Service.

Orders: effect, emergencies, and compliance duty

Section 37 provides that Director General orders, rules, and regulations take effect within reasonable time set by the Director General (except in emergencies) and remain in force until replaced by further order/rule/regulation or for a specified period.
In emergencies, when the Director General is of the opinion that immediate action is required for safety in civil aviation, the Director General may issue just and reasonable orders/rules/regulations essential for emergency safety without answer or pleading, and with or without notice or hearing or reporting, at once.
After issuing emergency measures, the Director General must immediately initiate proceedings relating to the matter.
The Director General may suspend or modify orders upon notice and in a manner the Director General finds proper.
It is the duty of every person, including agents and employees of entities other than individuals, to observe and comply with any Director General order/rule/regulation/certificate affecting them while the same remains in effect.

Inspection access, deterrence, and preventing operation

Section 38 authorizes the Director General or authorized representative to access civil aircraft (including aerodromes) without restriction within the Philippines to ensure aircraft airworthiness and compliance with the Act, regulations, and applicable ICAO Annexes.
The Director General or authorized representative may access civil aircraft registered in the Philippines without restriction worldwide for compliance and airworthiness verification.
The Director General may access places and times where Philippine air operators operate, to conduct tests or inspections to determine compliance with the Act and applicable regulations and directives.
The Director General may access any aerodromes, whether privately or government-owned, to conduct inspections or evaluation of facilities to determine compliance with Act operations.
Section 39 authorizes the Director General to direct the operator or airman not to operate a civil aircraft in situations where the aircraft is not airworthy, the airman is not qualified or physically or mentally capable, or the operation would cause imminent danger to persons or property on the ground.
The Director General may take steps necessary to detain such aircraft or airmen.

Flight standards inspectorate and related offices

Section 40 requires the Board to establish the permanent Flight Standards Inspectorate Service (FSIS) to assist the Director General in certification and ongoing inspections of aircraft, airmen, and air operators.
FSIS functions include: airworthiness inspection; flight operations inspection and evaluation; and personnel licensing.
The Board must also create supporting offices, including Aircraft Registration, Aircraft Engineering and Standards, Airmen Examination Board, and Office of the Flight Surgeon.

Validation of foreign authorities’ actions

Section 41 authorizes the Director General to validate actions of another State’s civil authority in lieu of taking the specific action.
For airman or airworthiness certificate actions, the other State must be a signatory to the Chicago Convention and fulfill its obligations on issuance and currency of these certificates.
For actions applicable to air operators, the Director General must exercise discretion and require supporting documents.
When validation is based on another civil aviation authority’s actions, the Director General must ensure no information indicates the State does not meet its Chicago Convention obligations on certification and ongoing validation of air operators.

Aircraft accident investigation and evidentiary rule

Section 42 mandates that pending establishment of an independent separate government agency to investigate accidents on land, air and water, the Director General organizes an Aircraft Accident Investigation and Inquiry Board (AAIIB) composed of Authority personnel specialized in civil aviation disciplines.
The Board appoints the head of the AAIIB.
The Board promulgates rules on notification and reporting of accidents and incidents involving aircraft.
The Director General may investigate or arrange for investigation of accidents in the Philippines and of civil aircraft registered in the Philippines occurring outside a foreign country for determining facts, conditions, circumstances, and probable cause.
The Director General may participate in investigations of accidents involving Philippine-registered aircraft occurring outside a foreign country’s territory, consistent with treaties/conventions/agreements/arrangements.
The Director General takes corrective actions based on findings to prevent similar accidents.
Accidents within military sites in the Philippines, or accidents involving only armed forces aircraft of a foreign country occurring in the Philippines, are the responsibility of the military.
No part of any Director General accident report (or reports on the investigation) is admitted as evidence or used in a suit or action for damages arising from matters mentioned in such report, except when criminal liabilities/aspects of the accident are put into issue.

Aircraft registration, nationality, and recording interests

Section 43 requires the Authority to establish and maintain systems for national registration of aircraft in the Philippines, registration of liens, mortgages, and other interests in aircraft or aircraft engines, and a sale authority to register aircraft and those interests.
Section 44 provides eligibility rules: no aircraft is eligible for registration unless owned by or leased to Philippine citizens or corporations/associations organized under Philippine laws with at least sixty per centum (60%) capital owned by Filipino citizens, except that rules allow foreign-owned or registered aircraft to be registered when utilized by members of aero clubs organized for recreation, sport, or development of flying skills as a prerequisite to aeronautical activities within Philippine airspace.
Section 44 states that the registration certificate is conclusive evidence of nationality for international purposes but not in proceedings under Philippine laws.
The registration certificate is conclusive evidence of ownership except in a proceeding where ownership is, or may be, at issue.
Section 45 requires written applications for registration, signed and sworn to by the owner or lessee of an eligible aircraft or aircraft engine, stating filing date and place, specifications/construction/technical description, and other Authority-required information in the prescribed form.
Section 46 requires that if the Director General finds the aircraft or engine eligible, it must be registered and a certificate of registration issued to the owner.
Section 47 provides that an aircraft acquires Philippine nationality when registered under the Act.
Section 48 authorizes revocation of any certificate of registration by the Authority for any cause rendering the aircraft ineligible.
Section 49 provides that conveyances affecting title or interests in aircraft of Philippine registry are invalid against persons other than the conveying party and specified successors and persons with actual notice until recorded in the Authority.
Recording makes the conveyance valid against all persons.
Every instrument required to be recorded takes effect from the date of its record in the Authority’s books, not from the date of execution.
Section 50 requires conveyances to comply with requirements for registration of documents similar to land registration process.
Conveyances to be recorded must state the interest of the person making the conveyance (or, for conditional sale, the vendor’s interest).