Legal basis and declared policy
- Republic Act No. 7227 creates the Subic Bay Freeport and declares a policy to promote the economic and social development of Central Luzon in particular and the country in general.
- The Subic International Airport within the Subic Bay Freeport is treated as instrumental in developing the zone into a self-sustaining, industrial, commercial, financial and investment center in the Asia-Pacific region.
- Republic Act No. 776 declares government policy to develop and utilize the country’s air potential through an air transportation system properly adapted to foreign and domestic commerce.
- The DOTC Department Order No. 95-848 treats Republic Act No. 776 as applying to the Subic International Airport.
Authority over civil aviation
- The government is vested with authority to take charge of the technical and operational phase of civil aviation matters.
- The government is authorized to designate and establish civil airways and air navigation facilities.
- DOTC Department Order No. 95-848 is issued in support of these government authorities.
Airport designation for all-cargo interpretation
- The Subic International Airport is declared to be an airport serving Manila for purposes of interpreting all-cargo provisions in specified air agreements.
- The designation applies to the Air Transport Agreement, with any amendments, between the Republic of the Philippines and the United States of America.
- The designation applies, with certain limitations, to the Air Services Agreement, with any amendments, between:
- the Government of the Republic of the Philippines and the Government of Japan; and
- the Government of the Republic of the Philippines and the Government of the United Kingdom of Great Britain and Northern Ireland.
Geographic and commercial scope of application
- Application of DOTC Department Order No. 95-848 is limited to specifically identified all-cargo rights and routes.
- The order covers:
- all-cargo Third and Fourth Freedom rights between the Republic of the Philippines and the United States of America as authorized by the Air Transport Agreement, with any amendments, exercised by carriers designated by the Republic of the Philippines or by the United States of America, either direct or over intermediate points;
- carriage of cargo on all-cargo flights between the United States of America and other countries where Manila is the intermediate point, as authorized by the Air Transport Agreement, with any amendments, by carriers designated by the Republic of the Philippines or by the United States of America;
- all-cargo Fifth Freedom rights between Japan and the Republic of the Philippines as authorized by the Air Transport Agreement, with any amendments, exercised by carriers designated by the Republic of the Philippines or by Japan.
- The order covers, to the extent authorized by the Air Services Agreement with Japan (and its amendments), the exercise of all-cargo Third and Fourth Freedom rights between the Republic of the Philippines and Japan by carriers designated by either government.
- The order covers, to the extent authorized by the agreement with the United Kingdom of Great Britain and Northern Ireland (and its amendments) for air services between and beyond their respective territories, the exercise of all-cargo Third and Fourth Freedom rights between the Republic of the Philippines and Hong Kong by carriers designated by either government.
Reservation of treaty rights
- DOTC Department Order No. 95-848 is not intended to deprive any Contracting Party to any of the cited agreements of any rights that the agreements may confer.