International Air Transportation: Carrier Designation
- At least two international carriers are designated as official carriers of the Philippines.
- Additional carriers may be designated if existing ones do not fully utilize the frequency entitlements under Air Services Agreements.
International Air Transportation: Traffic Rights and Routes
- Exchange of traffic rights and routes is based on:
- National interest, including promotion of trade, investments, and tourism.
- Reciprocity, defined as equal or equivalent exchange of rights and opportunities.
- The Civil Aeronautics Board (CAB) assesses national interest considering broader country and user interests.
International Air Transportation: Frequency and Capacity
- CAB has sole authority, subject to the President’s confirmation, to grant or increase frequencies, capacities, or new routes to foreign carriers.
- Frequency and capacity decisions:
- Third and fourth freedom operations are granted based on reciprocity and value to the Philippines.
- Fifth freedom rights are secondary and granted mainly to foster development of new routes.
- CAB may authorize special flights if designated carriers cannot meet demand.
International Air Transportation: Tariffs and Fares
- CAB regulates foreign designated carriers’ fares, rates, and charges per existing laws.
- Granting promotional discounts considers reciprocity and value to the Philippines.
- Air tickets for Filipino citizens residing locally should be transacted within the Philippines as much as possible.
International Air Transportation: Charters and Non-Scheduled Services
- CAB may authorize charter flights and non-scheduled services if scheduled service traffic is not significantly diverted.
International Air Transportation: Developmental Cooperative Air Services
- CAB may grant up to one-year authority for air services aimed at route and destination development.
- Such authority includes connecting non-premier foreign city airports to new Philippine international gateways as per economic cooperation agreements.
International Air Transportation: Negotiating and Consultation Panel Composition
- Department of Foreign Affairs (DFA) leads initial Air Services Agreement negotiations.
- Philippine Negotiating Panel includes DFA (chair), CAB, designated carriers, and others authorized by the President.
- Subsequent negotiations are led by the Department of Transportation and Communications (DOTC) through CAB.
- Consultation Panel includes CAB (chair), DFA, Department of Trade and Industry (DTI), Department of Tourism (DOT), designated carriers, and others authorized by the DOTC Secretary.
Domestic Air Transportation: Market Entry and Exit
- Liberalization of domestic air transport is encouraged where legally permissible.
- Aim for at least two operators per route/link.
- Routes with only one operator are open for additional entrants.
- Existing operators may exit a route only after CAB finds abandonment uneconomical and in the public interest, per statutory obligations.
Domestic Air Transportation: Tariffs and Fares
- Passage, freight, and other charges shall be liberalized as much as allowed by law.
- Passage rates are deregulated for routes with more than one operator.
- Routes with a single operator remain subject to fare regulation.
- CAB monitors all rates and charges.
Government Support and Implementation
- All government agencies and instrumentalities, including government-owned or controlled corporations, must support and cooperate in implementing the Order.
- The Executive Order supersedes inconsistent previous executive, department, or agency issuances.
- The CAB is directed to issue implementing rules and regulations.
Effectivity
- The Order takes effect 15 days after publication in a newspaper of general circulation.