Law Summary
Composition and Governance of CAAP Board
- The Board consists of seven ex officio members: secretaries of DOTC, Finance, Foreign Affairs, Justice, Interior and Local Government, Labor and Employment, and the Director General (vice chairman).
- Prohibitions exist against Board members or relatives holding interests in air commerce or support services.
- Board quorum: four members; decisions require majority vote.
Authority's Capitalization and Fiscal Autonomy
- Authorized capital stock is Php 50 billion, fully subscribed by the government using ATO assets and appropriations.
- CAAP has fiscal autonomy; revenues from fees and charges fund operations.
- Exemptions from taxes and duties for importation of operational equipment and income.
Powers and Functions of the Authority and Board
- The Authority exercises corporate powers including entering contracts, investing funds, owning properties, issuing certificates, and settling claims.
- The Board provides policy guidance, oversees management, promulgates safety rules, fixes fees, and regulates air transport services.
- It ensures safety and security protocols including passenger screening and preventing aircraft piracy.
Director General’s Powers and Responsibilities
- Acts as Chief Executive Officer charged with administration, enforcement, certification, and technical/operational oversight.
- Authority to issue various certifications including airman, airworthiness, air operator, and airport operating certificates.
- Can investigate violations, impose fines, order suspension or revocation of certificates, and administer oaths.
Organizational Structure and Personnel
- Board establishes organizational structure including offices for Air Traffic Service, Air Navigation Service, Aerodrome Development and Management, and Administrative and Finance.
- Preferential hiring of qualified ATO personnel transitioning to CAAP.
- Authority to conduct and regulate aviation training schools.
Air Navigation, Safety, and Inspection Powers
- Director General to promulgate safety rules aligned with ICAO standards.
- Authority for inspection of aircraft, facilities, and personnel to ensure operational safety.
- Can prevent operation of unfit aircraft or unqualified airmen posing danger.
Aircraft Registration and Nationality
- Establishes a national registry of aircraft and related interests.
- Registration limited to Philippine citizens or entities with at least 60% Filipino ownership, with exceptions for aero clubs.
- Legal requirements for recording conveyances and liens to protect ownership rights.
Aviation Safety Enforcement and Certification
- Certification of airmen, aircraft airworthiness, air operators, aviation schools, maintenance organizations, and navigation facilities.
- Power to amend, suspend, or revoke certificates upon non-compliance or safety concerns.
Police Authority and Regulation of Airport Operations
- Authority to exercise police powers within airport premises respecting coordination with law enforcement agencies.
- Powers to regulate building heights and electronic interference near airports to ensure safe air navigation.
Regulation of Dangerous Goods, Development of Airports
- Enforcement of hazardous goods carriage rules as per international standards.
- Board oversees planning, development, and operation of airports considering safety, market demand, revenue, and public service obligations.
Penalties and Sanctions
- Administrative and criminal penalties for violations concerning certificates, operation of aircraft, airmen conduct, and safety regulations.
- Fines and imprisonment range depending on offense severity including falsification, unauthorized operation, endangering navigation, and interference with air navigation.
Transition from Air Transportation Office
- Abolishment of ATO; transfer of assets, contracts, and personnel to CAAP.
- Retirement options provided for ATO personnel.
Oversight and Implementation
- Congressional Oversight Committee to monitor implementation, financial performance, and adherence to mandate for five years.
- Requirement to promulgate implementing rules within 60 days of approval.
Miscellaneous Provisions
- Separation of powers between Board and Director General noted; Board cannot usurp Director General’s functions initially.
- Validation of foreign airworthiness and operator certifications permissible under certain conditions.
- Saving clause preserving rights under previous law and repealing contradictory laws.
- Effective 15 days after publication in newspapers.
This comprehensive framework establishes the CAAP as the central regulatory authority responsible for the safe, efficient, and secure operation of civil aviation in the Philippines, in conformity with international standards and local requirements.