Title
IRR for EO No. 253: Air Cargo Services Expansion
Law
Cab Rules And Regulations Of Executive Order No. 253
Decision Date
Mar 4, 2005
The Implementing Rules and Regulations of Executive Order No. 253 in the Philippines aim to expand air services to Diosdado Macapagal International Airport and Subic Bay International Airport, promoting the expansion of air cargo services while ensuring fair pricing and compliance with safety regulations.

Law Summary

Definitions Relevant to Implementation

  • "Air Carrier": Engages in air transport or commerce, including lease arrangements.
  • "Board": Refers to the Civil Aeronautics Board (CAB).
  • "International air cargo transportation": Movement of cargo/mail solely by cargo carriers between the Philippines and foreign places.
  • "Development route": Routes intended for promotion to boost economic growth.
  • "Capacity": Quantitative measure including flight frequency, cargo weight/space, aircraft types, or combinations thereof.
  • "Non-cabotage traffic rules": Rights to carry international air cargo to/from DMIA and SBIA, excluding domestic in-Philippine segments.
  • "Point": Any specified or unspecified destination on a route.
  • Other undefined terms follow definitions under RA 776 or relevant EO implementing rules.

Authority to Operate and Petition Procedures

  • Foreign cargo carriers must file verified petitions with the Board to operate international air cargo to DMIA/SBIA.
  • Petitions must specify routes, weekly capacity, aircraft types, and operation start dates.
  • Carriers with existing Air Service Agreements (ASA) must certify opting to operate under EO 253 rights exclusively.
  • Board evaluates petitions considering DMIA/SBIA's status as development routes.
  • Grants of authority typically free from restrictions on frequency, capacity, aircraft type, or non-cabotage rights, barring operational/security concerns.
  • Interested parties may file comments within 7 days post-notice.
  • The Board may issue provisional orders pending hearing resolution within 30 days.
  • Foreign air carriers' petition to operate charter (non-scheduled) flights fall under existing Economic Regulation No. 2.

Tariff and Rate Regulation

  • The Board guards against discriminatory pricing and unreasonable price levels due to dominant position abuse.
  • Predatory pricing leading to artificial lows or uneconomic prices is prohibited.
  • The Board investigates and acts against pricing violations.

Validity of Operation Rights and Waivers

  • Operation rights to DMIA and SBIA last 5 years, renewable upon petition, and aligned with foreign air carrier permits under RA 776.
  • Renewal petitions must be filed 30 days before permit expiration.
  • Waivers of restrictions (capacity, aircraft type, non-cabotage traffic) are valid for 1 year, also renewable under the same terms.

Fees

  • Application/renewal fee for right to operate: PHP 75,000.
  • Application/renewal fee for waiver of restrictions: PHP 15,000.
  • The Board may amend fees as needed.

Inspection Authority

  • The Board can inspect premises and operations of international air cargo carriers at DMIA and SBIA to ensure EO 253 compliance.

Violations and Penalties

  • Violations of EO 253 or its IRR are subject to penalties as per RA 776 provisions.

Reservation Clause

  • The Board may amend, repeal, or modify the IRR consistent with EO 253 objectives and RA 776 based on circumstances.

Separability Clause

  • Unconstitutional portions of the IRR do not affect remaining provisions.

Repealing Clause

  • Inconsistent prior resolutions, economic regulations, or board issuances are amended, repealed, or modified accordingly.

Effectivity

  • The IRR takes effect 15 days after publication in a newspaper of general circulation.
  • A copy will be deposited at the University of the Philippine Law Center as required by the Revised Administrative Code of 1987.

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