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.