Promotion and Regulation of Civil Aviation

"Air commerce": Transport by aircraft of persons or property for hire or in the conduct of a business.
"Aircraft": Includes airplanes, seaplanes, airships, balloons, and any vehicle designed for flight without other support than the atmosphere, excluding parachutes used primarily as safety equipment.
"Airman": Any individual involved in navigation, operation, inspection, overhaul, or repair of aircraft or parachutes.
"Scheduled airline": An airline operating regularly between specific points in air commerce subject to prescribed minimum requirements.
"Person": Includes individuals, partnerships, associations, corporations.
"Airworthiness": The state of an aircraft and its components being properly designed, constructed, and safe for air navigation.
"Airport": A land or water locality adapted for aircraft landing, takeoff, and providing shelter, supply, or repair facilities.
"Airport of entry": Airports designated for entry of civil aircraft from abroad, including passengers and merchandise.
"Emergency landing field": Localities adapted for emergency landings along airways but lacking full airport facilities.
"Air navigation facility": Includes airports, emergency landing fields, signal structures, radio facilities, and aids to air navigation.
"Civil airway": Routes designated for air commerce in navigable airspace.
"Secretary": Refers to the Secretary of Public Works and Communications.
"Director": Refers to the Director of Aeronautics.

A Bureau of Aeronautics is created under the Department of Public Works and Communications.
The Secretary may assign employees, transfer appropriations, and employ necessary personnel for the Bureau's function.
The Bureau is headed by a Director appointed by the President with the consent of the National Assembly's Commission on Appointments, with rank and salary equivalent to a first-class Bureau Director.

To enforce the Act and related regulations under the Secretary's supervision.
Designate and establish civil airways and maintain related landing fields and facilities.
Conduct research and experimentation, especially regarding aircraft construction and use of Philippine products.
Make government-owned air navigation facilities available to the public without granting exclusive rights.
Publish aeronautical bulletins on relevant matters including treaties, laws, and regulations.
Acquire and operate aircraft and navigation facilities as necessary to fulfill functions.
Exchange aeronautical information with foreign governments to foster aviation development.
Investigate civil aviation accidents, conduct public hearings, administer oaths, examine witnesses, and issue subpoenas, ensuring reported findings are made public when serious injuries or fatalities occur, but excluding use of such reports as evidence in court actions.
Issue permits and licenses to qualified persons, with permits for air commerce issued by the Secretary and President's approval.
Examine and rate civilian aviation schools regarding instruction adequacy, equipment suitability, and instructor competence; only upon request.
Promulgate rules and regulations with the force of law involving aircraft design, airworthiness, airman certification, airline safety standards, aircraft operation rules, and licensing procedures.

Operating aircraft contrary to Act provisions, regulations, license or permit conditions is unlawful.
Prohibition on flying over designated prohibited areas and carrying photographic equipment in such areas unless authorized.
No operation of aircraft without proper license and evidence of airworthiness.
Airmen must hold valid licenses; foreign nationals are generally prohibited from acting as airmen or engaging in air commerce unless expressly provided.
Ownership restrictions on aircraft engaged in air commerce: must be owned and controlled by Filipino citizens, corporations with Filipino majority ownership/control, or the US or Philippine governments; foreign-registered aircraft generally prohibited except for international services.

Violators are subject to fines up to Five Thousand Pesos, imprisonment up to six months, or both.

Previous Acts conflicting with this law are repealed.
The Act's requirements do not apply to aircraft and airmen of the US and Philippine armed forces.

An appropriation of One Hundred Thousand Pesos is allocated from the Philippine Treasury for the Bureau's operations.
Unexpended funds revert to the treasury after December 31, 1937.
The Division of Aeronautics is abolished; its functions, assets, and liabilities are transferred to the newly created Bureau of Aeronautics.