Communicato Ns

8/23/2019 Communicato Ns

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Republic of the Philippines

HOUSE OF REPRESENTATI VESQuezon City

Mr. Edgardo H. PangilinanDirector II

Legislative Archives Service

Director IIBills and Index Service

SUBJECT: Archival Materials

Pursuant to Section 142, Rule XXI of the Rules of the House of Representatives, I am

forwarding herewith Republic Act No. 9497 together with the papers and documents related thereto,

for safekeeping and preservation in the Archives, to wit:

[X]Copy/ies of Republic Act No. 9497 (signed by the President);

[K]Copy of letter from the Office of the President;

[i]Original/duplicate copy/ies of House Bill(s) numbered 3156, 152, 246, 1732 &3046

and reproduced copies thereof;

[i]Certification by the President to the urgency for its immediate consideration by the House;

[X]Copy of letter/referral to the Committees;

[i]Original/duplicate copy/ies of Committee Report No. 98;

[X]Third Reading copy/ies of HB No. 3156;

[K]Copy of letter/transmittal to the Senate;

[X]Third Reading copy/ies of HB No. 3156 as amended by the Senate;

[i]Letter/request for conference and designation of conferees;

[X]Copy of Conference Committee Reports;

L K J Copy of letter from the House/Senate ratifying the Conference Committee Report;[X]Enrolled copy/ies of HB No. 3156;

[K]Copy of letter/transmittal to/from the House/Senate;

E !J Copy of letter/transmittal to the Office of the President;[X]Others: Engrossment copy of HB No. 3156.


2/87


HOUSE OF REPRESENTATIVES

Quezon City

"THE REGULATION or ALL CIVIL AVIATION ACTIVITIES ANDINSTITUTION or SAFETY REQUIREMENTS, DEFINING ITS POWERSAND FUNCTIONS, AND FOR OTHER PURPOSES"

which was referred by the Speaker to the Committee on Government Reorganization and

the Committee on Transportation on July 24,2007.

Respectfully yours,

For the Secretary General:

A~O A. ADASA, J R~

yePUt~ Secretary Gen~al 4 1 \for Operations

~

The Honorable

Chairman

Committee on GOVERNAIENT REORGANIZATIONHouse of Representatives


3/87


HOUSE OF REPRESENTATI VESQuezon City

"AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF THE

PHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS

THEREFOR, AND FOR OTHER PURPOSES"

which was referred by the Speaker to the Committee on (J overnment Reorganization and

the Committee on Appropriations on J uly 24,2007.

Respectfully yours,


~MIO A. ADASA, J R~

~uty Secretary GeneralL

~or Operations r 'I:

The Ilonorable

Chairman

Committee on GOVERNMENT REORGANIZA nON

House of Representatives


4/87


HOUSE OF REPRESENTATI VES

Quezon City

"AN ACT CREATING THE PHILIPPINE CIVIL AVIATION AUTHORITY,DEFINING ITS POWERS AND A PPROPRIATING FUNDS THEREFOR,

AND FOR OTHER PURPOSES"

previously referred to the Committee on Government Reorganization and the

Committee on A ppropriations, which referrals were changed to the Committee on

Transportation, the Committee on Government Reorganization, the Committee on

Government Enterprises and Privatization and the Committee on Appropriations

through a motion duly approved by the House on November 13,2007.

Respectfully yours,


~MIO A . A DA SA , J ~

/Deputy Secretary GeneralfIfor Operations

~

The Honorable

r V \ChairmanCommittee on GOVERNMENT ENTERPRISES AND PRIVATIZATION

House of Representativesencl.: aJs

cc: Committee on GOVERNMf..iVT REORGANIZATION

Committee on APPROPRIATlONS


5/87


HOUSE OF REPRESENTATI VES

Quezon City

which was referred by the Speaker to the Committee on Transportation, the Committee on

Government Enterprises and Privatization, the Committee on Government Reorganization and

the Committee on Appropriations on November 14,2007.

Respectfully yours,


AIq;EMIO A. ADASA, JR~

~uty Secretary General ~ \

for Operationsvi

The Honorable

Chairman

Committee on APPROPRIATIONS



6/87



Quezon City

(l) Report by the Committee on Energy (Committee Report No. 97), re H. No. 3124,

entitled:

"AN ACT ACCEL ERA TING THE IMPL EMENTA TION OF RETAIL

COMPETITION AND OPEN ACCESS IN THE ELECTRIC POWER

INDUSTRY , AMENDING FOR THE PURPOSE SECTIONS 31 AND 43 OF

REPUBLIC ACT NO. 9136, OTHERWISE KNOWN AS THE 'ELECTRIC

POWER INDUSTRY REFORM ACT OF 2001' AND FOR OTHER PURPOSES"

(2) Report by the Committee on Transportation, the Committee on Government

Reorganization, the Committee on Government Enterprises and Privatization, and the

Committee on Appropriations (Committee Report No. 98), re H. No. 3156, entitled:

"AN ACT CREA TING THE CIVIL A VIA T ION AUTHORITY OF THEPHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS

THEREFORE, AND FOR OTHER PURPOSES"

Respectfully yours,


~IO A. ADASA, J R~~uty Secretary General .

v"Jfor Operationst

The HonorableChairman

Committee on RULES



7/87



Quezon City

I have the honor to transmit herewith, message dated December 20, 2007

informing the House of Representatives that on December 19,2007, the Senate passed

with amendments H. No. 3156, entitled:

"AN ACT CREA TING THE CIVIL AVIA TION AUTHORITY OF THEPHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS

THEREFORE, AND FOR OTHER PURPOSES"

in view of the disagreeing votes on the said house bill, the Senate requested the House

of Representatives for a conference and designated Senators Juan Ponce Emile, Joker

P. Arroyo, Edgardo 1. Angara, Richard "Dick" 1. Gordon, Panfilo M. Lacson and

Benigno S. Aquino III as its conferees, which was referred by the Speaker to the

Committee on Rules on January 28, 2008.

Respectfully yours,


1BJEMIO A. ADASA, J~.;mputy Secretary General

for Operationsc" t~ "

The Honorable

Chairman

Committee on RULES



8/87

~tpuh1it lIffqt J lqilippiuts

~nuz:e of~:epr:ez:enfztfiUtZ(@UtZlIU (!li tlJ , ~tfrlI ~ZluilZl

~ ? 7 J . Q/VaxlMlMWSecretary General

THE DEPUTY SECRETARY GENERAL

LegislativeOperationsDepartment

May we refer, for appropriate action, the herein attached letter dated 27 November 2007of Her Excellency Gloria M. Arroyo, certifying to the necessity of the immediateenactment of House Bill No. 3156, entitled: "An Act Creating the Civil AviationAuthority of the Philippines, Authorizing theAppropriation of Funds Therefor, andforOther Purposes'."

National Government Center, Constitution Hi lls, 1126 Quezon City, PhilippinesPHONES: 9316216; 9316298; 9315001-48 locals 7459/7468/7498. TELEFA X: 9315556


9/87

~rpuhlit lIffqeJqilippiues

~nuse nf ~eptesenfatiues(@ U ei!l I U Q I i f l ;! , J 'tI tcltlI J I ll U tuH a

1l2li

r,,_-1,,4 I _

If,"/ }J " - 1 Y / '\"~I

\ J . - - - - - - - - - - -Respectfully forwarded herewith is the enclosed letter of Executive Secretary

Eduardo R. Ermita, transmittingtheletter of evendateof Her Excellency,President Gloria

Macapagal-Arroyo,certifyingto the necessity of the immediateenactment of House Bill

No. 3156,entided:

HOD. ROBERTO P. NAZARENO

Secretary GeneralHouse of Representatives

"AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF

THE PHILIPPINES, AUTHORIZING THE APPROPRIATION OF

FUNDS THEREFOR, AND FOR OTHER PURPOSES',"

Cc: DSG EvelynP.Panlaque

EXD-A4524

/rina/14th


10/87

N O V 2 7 2801

HO N. J O SE C . D E V ENEC I A , J R .Speaker


Quezon city

We are transmitting herewith the letter of even date of HerExcellency President Gloria Macapagal-Arroyo, certifying to the necessity

of the immediate enactment of House Bill No. 3156 / entitled:

"AN ACT CREATING THE CIVIL AVIATION

AUTHORITY OF THE PHILIPPINES, AUTHORIZING

THE APPROPRIATION OF F UNDS THEREF OR, AND

F OR OTHER PURPOSE5,"

pursuant to the provisions of Article VI, Section 26 (2) of the 1987Constitution.

E DU A R DO R . E R M I T AExecutive Secretary

cc: H O N. M A N U E L B . V I L L A R , J R .Senate President

Philippine Senate

Pasay City


11/87

MALACANANG

MANILA

HON. J OSE C. DE VENECIA, J R.SpeakerHouseof RepresentativesQuezon City

Pursuant to the provisions of ArticleVI, Section 26 (2)of the 1987Constitution, I hereby certifyto the necessity of the immediateenactmentof HouseBill No.3156, entitled:

" AN ACT CREATI NG THE CI VI L AVI ATI ONAUTHORITY OF THE PHIUPPINES, AUTHORIZING THE

APPROPRIATI ON OF FUNDS THEREF OR, AND F OR OTHER

PURPOSES, "

to address the public emergency arising fromthe urgent need to ensuremaximum security for passengers and cargo using airport facilitieswithin Philippine jurisdiction and to update the laws governing theregulation of the civil aviation industry in the Philippines, to conformwith international civil aviation standards and laws.

~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IPGMA Hologram H 42499

cc: HOD. MANUEL B. VIL LAR, J R.Senate PresidentPhilippine SenatePasay City


12/87


Senate

Pasay City

The Honorable

Speaker JOSE DE VENECIA JR.


Quezon City

I have been directed to inform the House of Representatives that on December 19, 2007,

the Senate passed with amendments H. No. 3156, entitled:

AN ACT

CREATING THE CIVIL AVIATION AUTHORITY OF

PHILIPPINES, AUTHORIZING THE APPROPRIATION OF

THEREFORE, AND FOR OTHER PURPOSES.

THE

FUNDS

In view of the disagreeing votes on the said house bill, the Senate requested the House of

Representatives for a conference and designated Senators Juan Ponce Emile, Joker P. Arroyo,Edgardo J. Angara, Richard "Dick" J. Gordon, Panfilo M. Lacson and Benigno S. Aquino III as

its conferees.

EMMA LIRIO- YES

Senate Secretary


13/87


Senate

Pasay City

"NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS ACT

SHALL DIMINISH THE POWERS AND FUNCTIONS OF THE CIVIL

AERONAUTICS BOARD (CAB) AS PROVIDED FOR UNDER REPUBLIC

ACT NO. 776, ALSO K NOWN AS "THE CIVIL AERONAUTICS ACT OF THE

PHILIPPINES", AS AMENDED";

3. On the same page and the same line, replace the small letters "d" and "g" of the

words "director general" with the capital letters "D" and "G", respectively;

5. On the same page and the same line, replace the small letters "b" and "d" of the

words "board of directors" with the capital letters "B" and "D", respectively;

6. On page 15, line 11, replace the small letter "c" of the word "chairman" with acapital letter "C";

7. On the same page and the same line, delete the word "any" and in lieu thereof,

insert the phrase "UPON THE INI TIATIV E OF";

8. On page 16, line 2, replace the small letter "b" of the word "billion" and the smallletter "p" of the word "pesos" with the capital letters "B" and "P", respectively;


14/87

9. On the same page, line 16, amend the entire Section 16 which shall read as

follows:

"SEC. 16. COLLECTION AND UTILIZA nON OF FEES. - ALL

MONEYS COLLECTED AND/OR EARNED BY THE AUTHORITY

UNDER THIS ACT SHALL BE SUBMITTED TO CONGRESS ANNUALL YBEFOREHAND FOR APPROPRIA nONS.";

10. On the same page, line 23, between the words "used" and "in", insert the phrase

"SOLELY AND EXCLUSIVELY ";

11. On page 17, line 22, after the word "Philippines", delete the phrase ", copy

furnished" and in lieuthereof, insert the conjunction "AND";

12. On the same page, lines 22 and 23, delete the article ''the'' between the words

''to'' and "Congress";

"(A) EXERCISE GENERAL SUPERVISION AND CONTROL OVER AL L

OFFICES AND EMPLOY EES OF THE AUTHORITY;"

14. On page 24, line 21, delete the word "in" before the word "consultation" and

replace it with theword "AFTER";

15. On the same page, line 22, delete the comma (,) after the word "Director" and

insertthephrase "AND AFTER PUBLI C HEARING";

16. On page 25, from lines 9 to 12, delete the entire Section 29. Renumbered the

succeeding sections accordingly;

17. On page 60, line 23, replace the capital letter "A" of the word "Authority" to a

small letter "a";

18. On the same page and the same line, after the word "Authority", add the phrase

"ANY REAL PROPERTY OWNED BY THE NATIONAL GOVERNMENT

OR GOVERNMENT-OWNED CORPORATION OR AUTHORITY WHICH

IS BEING USED AND UTILIZED AS OFFICE OR FACILITY BY THE A IRTRANSPORT OFFICE SHALL BE TRANSFERRED AND TITLED IN

FAVOR OF THE AUTHORITY";

19. On the same page, lines 25 and 26, replace the small letters "a" and "s" of the

words "assistant secretary" with capital letters "A" and"S", respectively;


15/87

"SEe. 93. CONGRESSIONAL OVERSIGHT COMMITTEE. - A

CONGRESSIONAL OVERSIGHT COMMITTEE, HEREIN AFTER

REFERRED TO AS THE "COMMITTEE", IS HEREBY CONSTITUTED IN

ACCORDANCE WITH THE PROVISIONS OF THIS ACT. THECOMMITTEE SHALL BE COMPOSED OF THE CHAIRMEN OF THE

COMMITTEES ON PUBLIC SERVICES OF BOTH THE SENATE AND

THE HOUSE OF REPRESENTATIVES AND FOR ADDITIONAL

MEMBERS FROM EACH HOUSE TO BE DESIGNATED BY THE

SPEAK ER OF THE HOUSE OF REPRESENTATIVES AND THE SENATE

PRESIDENT, RESPECTIVELY.

THE COMMITTEE SHALL , AMONG OTHERS, IN AID OF

LEGISLATION:

1) MONITOR A ND ENSURE THE PROPER IMPLEMENT AnON OFTHIS ACT;

2) REVIEW THE COLLECTION PERFORMANCE OF THE

AUTHORITY; AND

3) REVIEW THE PROPER IMPLEMENTATION OF THE

PROGRAMS OF THE AUTHORITY.

IN FURTHERANCE OF THE HEREIN ABOVE CITED OBJECTIVES,

THE COMMI TTEE IS EMPOWERED TO REQUIRE THE AUTHORITY

THE SUBMISSION OF ALL PERTINENT INFORMATION INCLUDING

BUT NOT LIMITED TO ITS COLLECTION PERFORMANCE DATA AND

ITS ANNUAL AUDITED FINANCIAL STATEMENT CERTIFIED TO BY

THE COMMI SSION ON AUDIT."; and

21. On the same page, line 9, after the word "accordingly", delete the "period" and

replace it with a "comma" and add the following phrase which shall read as

follows: "INCLUDING PROVISIONS OF ANY LAW, DECREES,

EXECUTIVE ORDERS, RULES AND REGULATIONS OR PART

THEREOF WHICH PROVIDES EXEMPTIONS TO ANY AIR CARRIER,

ORGANIZATION OR ENTITY FROM PAYMENT OF ANY AIR

TRANSPORTATION OFFICES'S IMPOSED FEES AND CHARGES

RELATING TO BUT NOT LIMITED TO NAVIGATION,COMMUNICATION, CONCESSION, LI CENSE AND PERMIT.".

E~SSenateSecretary


16/87


Senate

Pasay City

The Honorable

Speaker J OSE DE VENECIA J R.


Quezon City

I have been directed to inform the House of Representatives that the Senate on even date

designated Senators Juan Miguel F. Zubiri and Gregorio B. Honasan II as new members, vice

Senators J oker P. Arroyo and Edgardo J. Angara to the Conference Committee on the

disagreeing votes on House Bill No. 3156, entitled:

AN ACT

CREATI NG THE CI VI L AVI ATI ON AUTHORI TY

PHILIPPINES, AUTHORIZING THE APPROPRIATION

THERE FORE, AND FOR OTHE R PURPOSES.

OF THE

OF FUNDS


17/87


Senate

Pasay City

The Honorable

Speaker PROSPERO C. NOGRALES JR.


Quezon City

I have been directed to inform the House of Representatives that ebruary 4, 2008, the

Senate approved the Conference Committee Report on the disagreeing vo es on House Bill No.

3156, entitled:

AN ACT

CREATING THE CIVIL AVIATION AUTHORITY

PHILIPPINES, AUTHORIZING THE APPROPRIATION

THEREFOR, AND FOR OTHER PURPOSES.

~Y S

Senate Secretary

OF THE

OF FUNDS


18/87

HON. EMMA LIRIO-REY ES

Secretary of the Senate

Senate of the Philippines

GSIS Financial Center

Pasay City 1308

Metropolitan Manila

"AN ACT CREATING THE CIVIL A VIA nON AUTHORITY OF

THE PHILIPPINES, AUTHORIZING THE

APPROPRIA nON OF FUNDS THEREFOR, AND FOR

OTHER PURPOSES"

ORIGINAL SIGNED

ROBERTO P. NAZAREN~

~ecretary General! '1r


19/87

CONGRESS OF THE PHILIPPINES }

FOURTEENTH CONGRESS

First Regular Session

BY REPRESENTATIVES ANGARA, ZAMORA (M.), PUENTEVELLA, MADRONA,FABIAN, ALFELOR., LAGMAN, TEODORO, GARIN, CERILLES,

CHIONGBIAN, MAGSAY SAY , AL VAREZ (A.), SANDOVAL ,

DAY ANGHIRANG, ABLAN, NOGRALES, DIMAPORO, CUENCO, APOSTOL,

NICOLAS, SUSANO, MERCADO, MACAPAGAL-ARROYO, ABANTE,

CELESTE, SOLIS, GULLAS, J ALOSl0S, CODILLA, BIRON, DURANO, J A VIER,

UY (R.S.), SEACHON-LANETE, ALCALA , DEFENSOR (M.), JAAFAR, DlAZ,

DY, KHo, BICHARA, DAZA, LAZATIN, ARROY O (D.), ROMUALDO, Sy-

LIMKA ICHONG, ONG, BARZAGA, BAUTISTA, AMATONG, EMANO, HOFER,

DIASNES, SALIMBANGON, LABADLABAD, GARAY , GATCHALIAN, LIM,

LAPUS, DEL ROSARIO, ARAGO, ESTRELLA (R.), SANTIAGO (N.),

MANGUDADATU, Y AP, CAJES, PLAZA, Y u, TUPAS, SAL VACION, PICHA Y ,

COQUlLLA, VILLANUEVA, CHIPECO, FERNANDEZ, NOEL, BELTRAN,

RODRIGUEZ, ESCUDERO, BELMONTE, PABLO, ARROY O (1.), CAJA Y ON,

SAN LUIS, VlNZONS-CHATO, CLIMACO, SUAREZ, PUNO, JALA , GARCIA

(V.), PANCRUDO, COSCOLLUELA, BONOAN-DAVID, GONZALES (A.),

TIENG, CUA (J.), COJUANGCO, ALMARIO, DUA VIT, BIAZON, MANDANAS,

BRAVO, REY ES (C.), FUA, ANGPING, ANTONINO, CASTELO DAZA, REY ES

(V.), ZlALCITA, LACSON, DE GUZMAN, MENDOZA, RODRIGUEZ-ZALDARRlAGA, SY-ALVARAOO. PlNGOY, BAGATSING, VALENCIA,

TEODORO, AGBA Y ANI, ROMAN, PANCHO. VAL DEZ, CHUNGALAO,

CASTRO, GARCIA (P.J.). CHATTO, OLANO, AQUINO, ORTEGA. DUENAS,

ARENAS, ZUBIRI, DUMARPA. GONZALEZ. CARl, DOMOGAN. UMAL I, (C.),

LAGBAS, MALAPITAN. CUA (G.). PONCE-ENRILE, FERRER, CHAVEZ.

T ANADA. ABA YA . ROXAS, ARBISON. BALlNDONG, CLARETE. DUMPIT.


20/87

ENVERGA, GATL,,\BAY AN.Go. MA TUGAS. NAVA . ROBES. MA ZA, CRUZ-

GONZAL ES. GUINGONA, HATAM AN, HONTIVEROS-BARAQUEL, BINAY ,

CAY ETANO. DEFENSOR (A,). DEL MA R, GARCIA (P,). JOSON, MITRA.

ROMUALDEZ. ROMULO, VELARDE AND VILLAROSA. PER COMMITTEEREPORT No, 98

A N A CT CREA TING THE CIV IL A VIA TION A UTHORITY OF THE

PHILIPPINES, AU THORIZING THE APPROPRIATION OF FUNDS

THEREFORE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION L Short Title, - This Act shall be known as the Civil

2 Aviation Authority Act of2008.

3 SEe. 2, Declaration of Policy. - It is hereby declared the policy of

4 the State to provide safe and efficient air transport and regulatory services in

5 the Philippines by providing for the creation of a civil aviation authority with

6 jurisdiction over the restructuring of the civil aviation system, the promotion"7 development and regulation of the technical, operational, safety, and aviation

8 security functions under the civil aviation authority,

II is used for specialized services such as agriculture, construction, photography,

12 surveying, observation and patrol, search and rescue, aerial advertisement, etc.

13 (2) "Aerodrome" refers to an airport, a defined area on land or

14 water (including any buildings, installations and equipment) intended to be

15 used either wholly or in part for the arrival, departure and surface movement of

16 aircraft


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(3) "Aeronautics or aviation" refers to the science and art of flight.

2 (4) "Aeronautical telecommunication" refers to and includes any

3 telegraph or telephone communication signs, signals, writings. images and

4 sounds of any nature, by wire, radio or other systems or processes of signaling,

5 used in the aeronautical service.

6 (5) "Aeronautical telecommunication station" refers to any station

7 operated to provide telecommunications for aeronautical purposes.

8 (6) "Air carrier or operator" refers to a person who undertakes,

9 whether directly or indirectly, or by a lease or any other arrangements, to

10 engage in air transportation services or air commerce. The term may likewise

11 refer to either a "Philippine air carrier" or a "foreign air carrier" as indicated

12 by the context.

13 (7) "Air commerce or commercial air transport operation" refers to

14 and includes scheduled or non-scheduled air transport services for payor hire,

15 the navigation of aircraft in furtherance of a business, the navigation of aircraft

16 from one place to another for operation in the conduct of a business, or an

17 aircraft operation involving the transport of passengers, cargo or mail for

18 remuneration or hire.

19 (8) "Aircraft" refers to any machine that can derive support in the

20 atmosphere from the reactions of the air other than the reactions of the air

21 against the earth's surface. The term "aircraft", when used in this Act or in

22 regulations issued under this Act, shall refer to civil aircraft only, and will not

23 include State or public aircraft.

24 (9) "Aircraft accident" refers to an occurrence associated with the

25 operation of an aircraft which takes place between the time any person boards


22/87

Jhe aircraft with the intention of flight until such time as all such persons have

2 disembarked, in which:

3 (a) Any person suffers death or serious injury as a result of being in

4 or upon the aircraft or by direct contact with the aircraft of anything attached

5 thereto; or

6 (b) The aircraft receives substantial damage.

7 ( 10) "Aircraft radio station" refers to a radio station on board any

8 aircraft.

9 (11) "Aircraft engine" refers to any engine use, or intended to be

lOused, for propulsion of aircraft and includes all parts, appurtenances, and

II accessories thereof other than propellers.

12 (12) "Aircraft incident" refers to the occurrence, other than an

13 accident, which is associated with the operation of an aircraft when the safety

14 of the aircraft has been endangered, or is a situation which could endanger an

15 aircraft and if it occurred again in other circumstances.

16 (13) "Aircraft piracy" refers to any actual or attempted seizure or

17 exercise of control, by force or violence, or by any other form of intimidation,

18 with wrongful intent, of an aircraft within the jurisdiction of the Philippines.

19 (14) "Airman" refers to any individual who engages, as the person

20 in command or as pilot, mechanic, aeronautical engineer, flight radio operator

21 or member of the crew, in the navigation of aircraft while under way and any22 individual who is directly in charge of inspection, maintenance, overhauling, or

23 repair of aircraft, aircraft engine, propellers, or appliances; and individual who

24 serves in the capacity of aircraft dispatcher or air traffic control operator.

25 (15) "Airman license" refers to a written authorization or

26 permission issued to any person for the exercise of the privileges of flying,


23/87

maintaining, controlling, directing, dispatching. instructing or any other civil

2 aviation activity which is regulated and supervised by the Authority.

3 (16) "Air navigation" refers to the practice of controlling. guiding

4 and operating aircraft from airport of departure to pre-determined airport of

5 destination, including alternate airports. To ensure safety, regularity and

6 efficiency of civil aviation operations, standardization and common

7 understanding among all parties involved are essential in all matters affecting

8 the operation of aircraft and the numerous facilities and services required in

9 their support, such as airports, telecommunications, navigation aids,10 meteorology, air traffic services, search and rescue, aeronautical information

II services and aeronautical charts, in accordance with the procedures, rules and

12 regulations contained in the appropriate Annexes to the Chicago Convention.

13 (17) "Air navigation facility" refers to any facility used in, available

14 for use in, or designed for use in aid of air navigation, including airports,

IS landing areas, lights, any apparatus or equipment for disseminating weather

16 information, for signaling, for radio directional finding, or for radio or other

17 electromagnetic communication, and any other structure or mechanism having

18 a similar purpose for guiding or controlling flight in the air or the landing and

19 take-off of aircraft.

20 (18) "Air navigation services" refers to and includes information,

21 directions and other facilities furnished, issued or provided in connection with

22 the navigation or movement of aircraft, and the control of movement of

23 vehicles in any part of an airport used for the movement of aircraft.

24 (19) "Air operator" refers to any organization which undertakes to

25 engage in domestic commercial air transport or international commercial air

26 transport, whether directly or indirectly, or by a lease or any other

27 arrangement.


24/87

(20) "Air Operator Certificate (AOC)"' refers to a certificate

2 authorizing an operator to carry out specified commercial air transport

3 operations,

4 (21) "Air route" refers to the navigable airspace between two points

5 and the terrain beneath such airspace identified. to the extent necessary. for

6 application oftlight rules,

7 (22) "Air route and airway facilities" refers to facilities provided to

8 permit safe navigation of aircraft within the airspace of air routes and airways.

9 including:

10 (a) Visual and non-visual aids along the air routes and airways;

II (b) Visual and non-visual aids to approach and landing at airports;

12 (c) Communication services;

13 (d) Meteorological observations;

14 (e) Air traffic control services and facilities; and

15 (f) Flight services and facilities.

16 (23) "Airport" refers to any area of land or water designed.

17 equipped. set apart or commonly used for affording facilities for the landing

18 and departure of aircraft and includes any area or space, whether on the

19 ground. on the roof of a building or elsewhere, which is designed, equipped or

20 set apart for affording facilities for the landing and departure of aircraft

21 capable of descending or climbing vertically.

22 (24) "Air transport" refers to the transportation of persons, property,

23 mail or cargo by aircraft.


25/87

(25) "Air transport service" refers to the act ofttansporting persons,

2 property, mail cargo, in whole or in part, by aircraft to points within or outside

3 of the Philippines.

4 (26) "Airworthiness" means that an aircraft. its engines. propellers.

5 and other components and accessories, are of proper design and construction,

6 and are safe for air navigation purposes. such design and construction being

7 consistent with accepted engineering practice and in accordance with

8 aerodynamic laws and aircraft science.

9 (27) "Annexes to the Chicago Convention" refers to the documents

10 issued by the International Civil Aviation Organization (lCAO) containing the

II standards and recommended practices applicable to civil aviation.

12 (28) "Appliances" refers to instruments, equipment, apparatus,

13 parts, appurtenances, or accessories, of whatever description, which are used,

14 or are capable of being or intended to be used, in the navigation, operation, or

15 control of aircraft in flight (including parachutes and including communication

16 equipment and any other mechanism or mechanisms installed in or attached to

17 aircraft during flight), and which are not part or parts of aircraft, aircraft

18 engines, or propellers.

19 (29) "Authority" refers to the Philippine Civil Aviation Authority

20 created pursuant to the provisions of this Act and shall, as indicated by the

21 context, include the Board of Directors and/or Director General created

22 pursuant thereto.

23 (30) "Aviation certificate" means any airworthiness certificate.

24 airman certificate. air operator certificate, certificate authorizing the operation

25 of an aviation school or approved maintenance organization or other document


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issued by virtue of the provisions of this Act in respect of any person. aircraft.

2 airport or aviation-related service.

3 (31) "Board of Directors" means the board of the civil aviation

4 authority created under this Act.

5 (32) "Chicago Convention" refers to the international basis for civil

6 aviation agreements.

7 (33) "Citizen of the Philippines" refers to one of the following:

8 (i) An individual who is a citizen of the Philippines;

9 (ii) A partnership of which each member is a citizen of the

10 Philippines; or

11 (iii) A corporation or association created or organized and

12 authorized under the laws of the Philippines.

13 (34) "Civil aircraft .. refers to any aircraft other than a state or public

14 aircraft.

15 (35) "Civil aviation" refers to the operation of any civil aircraft for

16 the purpose of general aviation operations, aerial work or commercial air

17 transport operations.

18 (36) "Crew member" refers to a person assigned to perform duties

19 on an aircraft in flight.

20 (37) "Dangerous goods" refers to articles or substances that are

21 capable of posing significant risks to health or safety of property when

22 transported by air.

23 (38) "Director" refers to the Director General appointed under this

24 Act.


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(39) "Domestic air commerce" means and includes air commerce

2 within the limits of the Philippine territory.

3 (40) "Domestic air transport" means air transportation within the

4 limits of the Philippine territory.

5 (41) "Foreign air carrier or foreign air operator" means any operator,

6 not being a Philippine air operator, which undertakes, whether directly or

7 indirectly or by lease or any other arrangement, to engage in commercial air

8 transport operations within borders or airspace of the Philippines, whether on a

9 scheduled or chartered basis.

10 (42) "Foreign air transport" refers to air transportation between the

II Philippines and any place outside it or wholly outside the Philippines.

12 (43) "General aviation operation" refers to an aircraft operation of a

13 civil aircraft for other than a commercial air transport operation or aerial work

14 operation.

IS (44) "ICAO" Where used in this Act, refers to the abbreviation for

16 the International Civil Aviation Organization.

17 (45) "International commercial air transport" refers to the carriage

18 by aircraft of persons or property for remuneration or hire or the carriage of

19 mail between any two (2) or more countries.

20 (46) "Navigable airspace" refers to the airspace above the minimum

21 altitudes of flight prescribed by regulations under this Act and includes

22 airspace needed to insure safety in the take-off and landing of aircraft.

23 (47) "Navigation of aircraft" refers to a function that includes the

24 piloting of aircraft.


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(48) "Person" refers to any individual. firm. partnership .

2 corporation. company. association, joint-stock association, or body politic, and

3 includes any trustee, receiver. assignee, or other similar representative of these

4 entities.

5 (49) "Philippine air carrier" means an air carrier who is a citizen of

6 the Philippines.

7 (50) "Philippine aircraft" means an aircraft registered in the

8 Philippines in accordance with the requirements of this Act.

9 (51) "Propeller" refers to an inclusive term for all parts,

I 0 appurtenances, and accessories of a propeller.

II (52) "Public aircraft" refers to an aircraft used exclusively in the

12 service of any government or of any political jurisdiction thereof, including the

I3 Goverrunent of the Philippines, but not including any government-owned

14 aircraft engaged in operations which meet the definition of commercial air

15 transport operations.

16 (53) "Rules of the air" means those provisions for securing the safety

17 of aircraft in flight and in movement on the surface and the safety of persons

18 and property on the surface. These provisions include:

(b) General, visual and instrument flight rules;

(c) Airport traffic rules; and

(d) Airport signals and markings.

23 (54) "Spare parts" refers to any parts, appurtenances, and

24 accessories of aircraft (other than aircraft engines and propellers). aircraft


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engines (other than propellers). propellers. and appliances. maintained for

2 installation or use in an aircraft. aircraft engine. propeller. or appliance. but

3 which at the time are not installed therein or attached thereto.

4 (55) "Special aircraft jurisdiction of the Philippines" This includes:

5 (i) Civil aircraft of the Philippines: and

6 (ii) Any other aircraft within the jurisdiction of the Philippines, while

7 the aircraft is in flight, which is from the moment when all external doors are

8 closed following embarkation until the moment when one such door is opened9 for disembarkation or, in case of a forced landing, until the competent

10 authorities take over the responsibility of the aircraft and the persons and

11 property aboard.

12 (56) "Validation" refers aboard to the written acceptance of an

13 action of the civil aviation authority of another country in lieu of an action that

14 this Act assigns to the Director General.

15 (57) "Landing fees" refers to all charges for the use of any landing

16 strip or runway by any aircraft landing or taking off at an aerodrome.

17 (58) 'Terminal fees" refers to charges for parking at or near the

18 ramp, terminal area, or building, for purposes of loading or unloading

19 passengers and/or cargo.

20 (59) "Royalties" refers to all charges based on gross business or

2)sales, or gross or net profit.

22 (60) "Supplies" includes any and all items of whatever nature or

23 description which may be necessary for, or incidental to, the operation of an

24 aircraft.

25 CHAPTER 11

26 ORGANIZATION OF AUTHORITY


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SEC. 4. Creation of the Authority. - There .ishereby created an

2 independent regulatory body with quasi-judicial and quasi-legislative powers

3 and possessing corporate attributes to be known as the Civil Aviation

4 Authority of the Philippines (CAAP), hereinafter referred to as the

5 "Authority", attached to the Department of Transportation and

6 Communications (DOTC) for the purpose of policy coordination. For this

7 purpose, the existing Air Transportation Office created under the provisions of

8 the Republic Act 776, as amended, is hereby abolished.

9 "NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS

10 ACT SHALL DIMINISH THE POWERS AND FUNCTIONS OF THE

I I CIVIL AERONAUTICS BOARD (CAB) AS PROVIDED FOR UNDER

12 REPUBLIC ACT NO. 776, ALSO KNOWN AS "THE CIVIL

13 AERONAUTICS ACT OF THE PHILIPPINES", AS AMENDED"

14 (a) Establishment of Authority Headed by a Director General- The

15 Authority shall be headed by a D[d]irector G[g]eneral of civil aviation,

16 referred to in this Act as the "Director," who shall be appointed by the17 President of the Philippines and shall be responsible for all civil aviation in the

18 Philippines and the administration of this Act. The Director shall be appointed

19 based on the qualifications herein provided and shall have a tenure of office for

20 a period of three (3) years. His appointment may be extended for another non-

21 extendible term of three (3) years and shall only be removed for cause in

22 accordance with the rules and regulations prescribed by the Civil Service

23 Commission.

24 (b) Responsibility of Director General - The Director shall be

25 responsible for the exercise of all powers and the discharge of all duties of the

26 Authority and shall have control over all personnel and activities of the

27 Authority.


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SEe. 5. Composition o/the Board Members. - The corporate powers

2 of the Authority shall be vested in a board. which is composed of seven (7)

3 members:

4 (a) The Secretary of the Department of Transportation and

5 Communications shall act as chairman ex officio;

6 (b) The Director General of Civil Aviation (DGCA) shall

7 automatically be the Vice Chairman of the Board.;(c) The Secretary of

8 Finance.

9 (d) The Secretary of Foreign Affairs;

10 (e) The Secretary of Justice;

II (f) The Secretary of the Interior and Local Government;

12 (g) A representative from private sector, with at least five (5) years

13 significant experience in the national civil aviation industry, who must be a

14 Filipino citizen, of good moral character, unquestionable integrity and who

15 shall be appointed by the President of the Philippines to hold office for a

16 period of three (3) years.

17 The Directors listed under Subsections (a) to (f) shall be ex officio

18 members of the Board of Directors: Provided. That in the absence of the

19 Director appointed in Subsections (c) to (f), the Director concerned shall

20 designate the officer next in rank to him in his department or office to act on

21 his behalf as a Director.

22 SEe. 6. Prohibited Interests. - All members of the Board or any of

23 their relatives within the fourth civil degree of consanguinity or affinity,

24 legitimate or common law, shall be prohibited from holding any interest

25 whatsoever, either as investor, stockholder, officer or director, in any company

26 or entity engaged in air commerce, whether scheduled or unscheduled,


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passenger or cargo, domestic 00 internationaL or in any business providing

2 support services to persons engaged in air commerce (i.e. general sales

3 agencies, travel agencies, cargo forwarders, ground handling. catering. fuel

4 servicing, aircraft maintenance. etc.) and must therefore divest, through sale or

5 legal disposition, of any and all interests in such undertakings upon the

6 member's assumption of office. Any vio lation of this section shall subject the

7 member concerned to removal from Authority for cause as well as

8 administrative, civil or criminal prosecution under applicable laws.

9 SEC. 7. Limitation of Subsequent Employment. - No member of the

10 Board or any employee of the Authority shall accept employment or enter into

11 a contract of service with an entity regulated by the Authority until the expiry

12 of one (l) year from the termination of his appointment, whether by resignation

13 or revocation or otherwise.

14 SEC. 8. Quorum. - The presence of at least four (4) members of the

15 Board shall constitute a quorum and the majority vote of three (3) members in

16 a meeting where a quorum is present shall be necessary for the adoption of any

17 rule, ruling, order, resolution, decision or other act of the Board in the exercise

18 of its functions.

19 SEe. 9. Qualifications of Director General. - No person shall be

20 appointed or designated as THE [a] D[d]irector G[g]eneral unless he is a

21 Filipino citizen, at least thirty-five (35) years of age, of good moral character,

22 unquestionable integrity, recognized competence and a degree holder with at

23 least five (5) years supervisory or management experience in the field of

24 aviation.


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SEe. 10. Board of Directors. - The powers and functions of the

2 Authority shall be vested in and exercised by THE [a] B[b)oard of

3 D[d]irectors. which are as follows:

4 (a) Provide comprehensive policy guidance for the promotion and

5 development of the aviation industry as provided in this Act;

6 (b) Formulate the objectives. strategies. and policies to be followed

7 by the Authority;

8 (c) Ensure that the Authority performs its functions in a proper.

9 efficient. and effective manner;

10 (d) Determine the organizational structure of the Authority,

II establish a human resources management system based on merit and fitness,

12 and adopt a rational compensation and benefits scheme;

14 (f) Submit an annual report to the President of the Philippines and

15 the Congress.

16 SEe. II. Board Meetings. - The Board shall meet regularly once a

17 month and may hold special meetings to consider urgent matters upon call of

18 the C[c]hairman or UPON THE INITIATIVE OF [any] four (4) members.

19 Internal rules of procedure in the conduct of Board meetings shall be as

20 prescribed by the Board.

21 SEe. 12. Per Diems. - The members of the Board shall receive aper

22 diem for each meeting actually attended. The per diems of the members of the

23 Board shall be determined pursuant to a resolution adopted by the Board


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subject to compliance of the guidelines duly existing and applicable by the

2 Commission on Audit.

3 SEC. 13. Personnel. Qualified existing personnel of Air

4 Transportation Office (ATO) shall be given preference in the filling up of

5 plantilla positions created in the Authority, subject to existing civil service

6 rules and regulations.

7 SEe. 14. Principal Office. - The Authority shall have its principal

8 office in Metro Manila and may hold hearings on any proceedings at such time9 and places within the Philippines, as it may provide by order in writing.

10 SEe. 15. Capitalization. - The Authority shall have an authorized

1 1 capital stock of Fifty B[b]iIlion P[p]esos (PhP50,000,000,000.OO) which shall

12 be fully subscribed by the Republic of the Philippines. The subscription of the

13 National Government shall be paid as follows:

14 (a) The unexpended balances of appropriations in the current

15 General Appropriations Act and other acts in force upon approval hereof,

16 pertaining to, held or used by, the ATO;

17 (b) The value of existing assets of the ATO, which shall be

18 determined by an independent and qualified appraiser or appraisers within six

19 (6) months from the effectivity of this Act, and after deducting the loans and

20 other liabilities of the A TO at the time of the takeover of the assets and

2I properties; and

22 (c) Such amounts as may be appropriated from time to time from the

23 funds of the National Treasury. including any outlay from the infrastructure

24 program of the National Government.


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17

SEC. 16. COLLECTION AND UTILIZATION OF FEES. - AL L

2 MONEYS COLLECTED AND/OR EARNED BY THE AUTHORITY

3 UNDER THIS ACT SHALL BE SUBMITTED TO CONGRESS

4 ANNUALLY BEFOREHAND FOR APPROPRIATIONS. [Fiscal Autonomy.

5 - The Authority shall enjoy fiscal autonomy. All moneys earned by the

6 Authority from the collection/levy of any and all such fees, charges, dues,

7 assessments and fines it is empowered to collect/levy under this Act shall be

8 used solely to fund the operations of the Authority.]

9 SEC. 17. Exemptionjrom Taxes, Customs and Tariff Duties. (a)The

10 importation of equipment, machineries, spare parts, accessories and other

II materials including supplies and services used SOLELY AND

12 EXCLUSIVELY in the operations of the Authority not obtainable locally shall

13 be exempt from all direct and indirect taxes, wharfage fees and other charges

14 and restrictions, the existence of pertinent laws to the contrary notwithstanding.

15 (b) All obligations entered into by the Authority and any income

16 derived therefrom, including those contracted with private international

17 banking and financial institutions, shall be exempt from all taxes, both

18 principal and interest. The Authority is also exempt from the payment of

19 capital gains tax, documentary stamp tax, real property estate tax and all other

20 local government-imposed taxes and fees.

21 SEC. 18. Schedule oj Fees and Charges. - The Authority shall

22 adopt and publish its schedule of fees and charges. The Authority shall hold

23 such public hearings or consultative meetings with stakeholders in the industry

24 before adopting its schedule of fees and charges. The Authority shall not revise

25 its schedule of fees and fines more often than once every three (3) years.


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SEe. 19. Compensation and Other Emoluments of Authority

2 Personnel. - Within six (6) months from the effectivity of this Act. the Board

3 shall determine the new schedule of salaries of the employees of the Authority

4 subject to compliance with the existing compensation laws.

5 SEe. 20. Transfer of Properties. - The funds and appropriations,

6 records, equipment and property of the ATO is hereby transferred to the

7 Authority.

8 SEC. 21. Annual Report. - The Authority shall prepare and submit

9 an annual report to the President of the Philippines[, copy furnished] AND to

10 [the] Congress, on its accomplishments at the close of each calendar year.

II CHAPTER III

12 GENERAL POLICIES

13 SEC. 22. Policies. - In the exercise and performance of its powers

14 and duties under this Act, the Authority shall consider the following, among

15 other things, as being in the public interest and in accordance with the public

16 convenience and necessity:

17 (a) The development and utilization of the air potential of the

18 Philippines;

19 (b) The encouragement and development of an air transportation

20 system properly adapted to the present and future of foreign and domestic

21 commerce of the Philippines:

22 (c) The regulation of air transportation in such manner as to

23 support sound economic condition in such transportation and to improve the

24 relations between air carriers;


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(d) Ensuring the safety, quality, reliability. and affordability of air

2 transport services for the riding public; and

3 (e) The encouragement and development of a viable and globally

5 CHAPTER IV

6 POWERS OF THE AUTHORITY

7 SEe. 23. Powers and Functions. - The Authority shall have such

8 powers as are granted to the Board and the Director under the provisions of

9 this Act.

10 SEe. 24. Corporate Powers. - The Authority, acting through the

II Board, shall have the following corporate powers:

12 (a) To succeed in its corporate name, to sue and be sued in such

13 corporate name, and to adopt, use and alter its corporate seal, which shall be14 judicially noticed;

16 (c) To enter into, make, perform and carry out contracts of every

17 class, kind and description, which are necessary or incidental to the realization

18 of its purposes, with any person, domestic or foreign private firm, or

19 corporation, local or national government office, agency and with international

20 institutions or foreign government;

21 (d) To raise money, contract loans, indebtedness, credit and issue

22 commercial papers and bonds, in any local or convertible foreign currency

23 from any other international financial institutions under terms and conditions

24 prescribed by law, rules and regulations;


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(e) To execute any deed of guarantee, mortgage. pledge. trust or

2 assignment of any property tor the purpose of financing the programs and

3 projects deemed vital for the attainment of its goals and objectives;

4 (f) To construct. acquire, own, hold. operate, maintain. administer

5 and lease personal and real properties, including buildings, machinery,

6 equipment, other infrastructure, agricultural land, and its improvements,

7 property rights, and interests therein, and to encumber, mortgage, dispose, sell,

8 or alienate or otherwise dispose the same at the fair market value it may deem9 appropriate; to lease its plant, machinery, equipment or goods not immediately

10 required by it: Provided That, no real property thus acquired and any other

11 real property shall be sold without the approval of the President of the

12 Philippines;

13 (g) To receive gifts, donations, grants, bequests, services,

14 properties, whether personal or real, and assistance of all kinds, from private

15 and public sources, firms, institutions, domestic and foreign governments, and

16 international institutions, and utilize the same for the purposes set forth in this

17 Act;

18 (h) To invest its funds and other assets in such areas, ventures, and

19 projects as it may deem wise;

20 (i) To settle, under such terms and conditions most advantageous to

21 it, any claim by or against it:

22 (j) To determine and keep its own system of accounts following

23 generally accepted principles of accounting. as well as the forms and contents

24 of its contracts and other business documents;


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(k) To perform such other acts,.as are necessary or convenient in

2 connection with the performance of its functions, to carry out the purposes of

3 this Act.

4 CHAPTER V

5 POWERS AND FUNCTIONS OF THE BOARD

6 SEe. 25. Powers of the Board. - The Board shall have the following

7 general powers:

8 (A) EXERCISE GENERAL SUPERVISION AND CONTROL

9 OVER ALL OFFICES AND EMPLOYEES OF THE AUTHORITY ;

10 (B) [(a)] Provide comprehensive policy guidance for the promotion

II and development of the Philippine aviation industry, as provided for in this

12 Act;

13 (C) [(b)] Ensure that the Authority performs its functions in a proper,

14 efficient and effective manner;15 (D) [(c)] Decide the objectives, strategies and policies of the

16 Authority in accordance with the provisions of this Act;

17 (E) [(d)] Determine the organizational structure of the Authority in

18 accordance with the provisions of this Act, establish a human resources

19 management system based on merit and fitness, and adopt a rational

20 compensation and benefits scheme;

21 (F)[(e)] Exercise appellate powers on any decisions, findings and

22 rulings of the Director, to issue subpoena ad testificandum or subpoena duces

23 tecum requiring the attendance and testimony of witnesses in any matter or

24 inquiry pending before the Board and require the production of books, papers,

25 contracts, agreements and all other documents submitted for purposes of this

26 section to be under oath and verified by the person in custody thereof as to the


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truth and correctness of data appearing in such books, papers, tariffs, contracts,

2 agreements and all other documents,

3 (G) [(f)] Exercise appellate powers to order the taking of depositions

4 in any proceeding, or investigation, pending before the Board at any stage of

5 such proceeding or investigation;

6 (H) [(g)] Use available services, equipment, personnel and facilities

7 of other agencies of the Philippine Government, on a reimbursable basis when

8 appropriate and, on a similar basis, to co-operate with those agencies in the

9 establishment and use of services, equipment and facilities of the Authority;

10 (I) [(h)] Use the property of the Authority in such a manner as may

II appear to the Authority to be requisite, advantageous or convenient with a view

12 to making the best use of any of the property of the Authority in relation to its

13 functions under this Act;

14 (1) [(i)] Invest such of the Authority's funds that are not immediately

15 required for operating expenses, or other immediate obligations in any business

16 venture the Board may deem appropriate, or in such secured note, government

17 securities, and other negotiable instruments that satisfY the guidelines

18 prescribed by the Board. Funds of the Authority shall be deposited in such

19 commercial and universal banks as the Board may determine, subject to the

20 requirements of existing laws. The Board shall designate the officials

21 authorized to deposit in or withdraw funds from such depository banks;

22 (K) [0)] Promulgate rules and regulations as may be necessary in the

23 interest of safety in air commerce pertaining to the issuance of the airman's

24 certificate including the licensing of operating and mechanical personnel, type

25 certificate for aircraft. aircraft engines, propellers and appliances,

26 airworthiness certificates, air carrier operating certificates, air agency

27 certificates, navigation facility and aerodrome certificates; air traffic routes;

28 radio and aeronautical telecommunications and air navigation aids; aircraft


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accident inquiries; a"erodromes, both public and private-owned; construction of

2 obstructions to aerodromes: height of buildings; antennae and other edifices;

3 registration of aircrafts; search and rescue: facilitation of air transports;

4 operations of aircrafts, both for domestic and international, including

5 scheduled and non-scheduled; meteorology in relation to civil aviation; rules of

6 the air; air traffic services; rules for prevention of collision of aircrafts;

7 identification of aircraft; rules for safe altitudes of flight; and such other rules

8 and regulations, standards, governing other practices, methods and/or

9 procedures as the Director may find necessary and appropriate to provide

10 adequately for safety regularity and efficiency in air commerce and air

II navigation;

12 (L) [(k)] Impose and fix reasonable charges and fees for the use of

13 government aerodromes or air navigation facilities; for services rendered by

14 the Authority in the rating of any aerodrome or air navigation facilities, civil

15 aviation schools and instructors, aircraft repair stations, and aircraft radio and

16 aeronautical telecommunications stations;

17 (M) [(I)] Fix the reasonable charges to be imposed in the use of

18 privately-owned air navigation facilities and aerodromes;

19 (N) [(m)] Adopt a system for the registration of aircraft as hereinafter

20 provided;

21 (0) [(n)] Determine and fix, landing fees, parking space fees, royalties

22 on sales or deliveries, direct or indirect, to any aircraft for its use of aviation

23 gasoline, oil and lubricants, spare parts. accessories and supplies, tools, other

24 royalties, fees or rentals for the use of any of the property under its

25 management and control;

26 (P) [(0)] Approve the annual and supplementary budget plan for

27 utilization of retained revenue;


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24

(Q) [(p)] Exercise the corporate powers granted to the A.uthority:

2 (R) [(q)] Upon its own initiative or the recommendation of the

3 Director or an application of aprivate person, grant exemption from the

4 requirements of observing rules or regulations issued in accordance with this

5 Act: Provided That said grant of exemption is not prejudicial to flight safety;

6 (S) [(r)] Formulate rules and regulations concerning compliance of

7 the carrier and the public for the safe transport of goods and materials by air

8 pursuant to international standards or Annexes to the Chicago Convention; and

9 (T) [(s)] In coordination with the appropriate government agency

IO tasked to provide airport security, shall:

11 (1) Prescribe reasonable regulation requiring that all passengers and

12 all property intended to be carried in the aircraft cabin in commercial air

13 transport be screened by weapon-detecting procedure or facilities employed or

14 operated by employees or agents of the air operator or foreign air operator

15 prior to boarding the aircraft for such transportation;

16 (2) Prescribe such other reasonable rules and regulations requiring

17 such parties, methods and procedures as the Director may find necessary to

18 protect persons and property aboard aircraft operating in commercial air

19 transport against acts of criminal violence and aircraft piracy; and

20 (3) To the extent practicable, require uniform procedures for the

21 inspection. detention, and search of persons and property in domestic

22 commercial air transport and international commercial air transport to assure

23 their safety and to assure that they will receive courteous and efficient

24 treatment by air operators and their agents and employees.

25 SEe. 26. Issuance of Rules and Regulations. -- The Board, in

26 consultation with the director general. shall issue and provide for the


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I. enforcement of such orders, rules and regulations as may be necessary to give

2 effect to the provisions of this Act. All rules and regulations issued in

3 accordance with the provisions of this Act shall be formally promulgated and

4 periodically reviewed and updated in accordance with the requirements of the

5 Administrative Code of the Philippines or any amendment or successor thereto

6 and the International Civil Aviation Organization Standards and

7 Recommended Practices. Pending the promulgation of such new rules and

8 regulations, the current rules and regulations of the ATO shall continue to

9 apply.

10 SEe. 27. Setting of Charges and Fees. - The Board, AFTER [in]

II consultation with the Director[,] AND AFTER PUBLIC HEARING shall

12 determine, fix, impose, collect or receive reasonable charges, fees, dues or

13 assessments in respect of aviation certificates, licenses and all other

14 authorizations or permissions authorized to be issued under this Act and all

15 services performed by the Authority. All charges and fees shall be formally

16 promulgated in accordance with the requirements of the Administrative Code

17 of the Philippines or any amendment or successor thereto. Pending the

18 promulgation of such new schedule of charges and fees, the current charges

19 and fees of ATO shall continue to apply.

20 SEe. 28. Issuance of Rules of Procedure and Practice. - The Board

21 may authorize the Director to issue or amend rules of practice and procedures

22 as may be required to be issued pursuant to the provisions of this A ct or issue

23 and adopt rules and regulations and other issuances of the ICAO. Pending the

24 promulgation of such new rules of procedures and practice, current rules of

25 procedures and practices of the ATO shall continue to apply

26 [SEe. 29. Original Powers. - Upon written petition by an interested

27 party, the Board may, in the exercise of original powers, hear cases of


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national importance at the first instaoce. The Board shall, by regulation.

2 setforth such cases which may be brought directly before the Board.]

3 SEe. 29 [30]. Appellate Powers. - The Board, on an appeal

4 properly taken by an interested party from a decision, judgment or order of a

5 Director, shall have the power to:

6 (a) Review, confirm, modify, revise, amend or reverse, as the case

7 may be, decisions, judgments and/or orders of theDirector;

8 (b) Confirm, remit, mitigate, increase or compromise, as the case

9 may be, fines imposed by the Director pursuant with the provisions of this

10 Act.; and

II (c) Review, confirm, modify, revise, amend or reverse, as the case

12 may be, impositions by the Director of liens on personal and real properties

13 of entities, persons, corporations or partnerships in default, or those who

14 have failed to perform their obligations pursuant to rules and regulations

15 promulgated under this Act, or those who shall have failed to pay the fines

16 or other pecuniary penalties for violation thereof.

17 In no case that the Director shall participate in the hearing and

18 adjudication of an appealed case before the Board where the subject of

19 appeal is a judgment or decision rendered by his office. In such case, it

20 requires four (4) concurring votes of the members of the Board who actively

21 participated in the deliberation of the appealed case before the judgment or

22 decision of the Director can be modified or reversed.

23 SEe. 30 [31]. Power to Administer Oaths. - The members of the

24 Board, the Director and such other duly designated officers of the Authority

25 shall have the authority to administer oaths in the transaction and

26 performance of their official duties.


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SEe.31[ 32]. Annual Budget. - The Board shall adopt an annual

2 Budget to fund the operations of the Authority.

3 SEe. 32[33]. Delegation of Functions. - (a) Delegation to

4 Officers, Employees and Administrative Units of Authority. - The Director

5 General may, subject to such regulations, supervision and review as may be

6 prescribed, authorize the performance by any officer, employee, or

7 administrative unit under the Director General's jurisdiction of any function

8 under this Act.

9 (b) Delegation to Private Persons. - The Director, in accordance

10 with the policy guidelines prescribed by the Board, is authorized to delegate

II any assigned powers and duties to any properly qualified private person subject

12 to his continuing supervision, regulation, and review as may be prescribed.

13 However, the Director shall ensure that such functions are not delegated in

14 such a way that air operators, aerial work or general aviation operators and

15 maintenance facilities, in effect, regulate themselves.

16 SEe. 33 [34]. Limitation of Powers. - The Board shall not

17 exercise any power or function not otherwise expressly granted to it under

18 this Act, neither shall the Board exercise, in the first instance, any power or

19 function that properly falls within the authority, jurisdiction, powers or

20 functions of the Director.

21 CHAPTER VI

23 SEe. 34 [35]. Organizational Structure of the Authority. -

24 Within fifteen (15) days from the appointment of and acceptance by all

25 members of the Board and the Director Generals of their respective

26 appointment. the Board, in consultation with the Director General. shall


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meet to draw-lIP the Authority's organizational structure. The Board shall

2 agree on the Authority's final organizational structure not later than six (6)

3 months from the date of the effectivity of this Act.

4 In addition to the offices created under Sections 38 and 42 of this

5 Act, the Board shall establish the following permanent offices:

6 (a) Air Traffic Service;

7 (b) Air Navigation Service;

8 (c) Aerodrome Development and Management Service; and

9 (d) Administrative and Finance Service.

10 The Board may agree for the viability for the creation of additional

I 1 offices and the finalization of the organizational structure not later than six

12 (6) months from the date of the effectivity of this Act.

13 Notwithstanding the qualification standards as may be prescribed

14 by the Board and the Civil Service Commission, the selection and

15 appointment of the heads of the foregoing oftices shall be limited from the

16 rank and file employees of the concerned services.

17 SEe. 35 [36]. Training Schools. -

18 (a) Authority to Operate - The Director may conduct a school or

19 schools for the purpose of training employees of the Authority in those subjects

20 necessary for the proper pertormance of all authorized functions of the

21 Authority. The Director may also authorize attendance of courses given in such

22 schools by other governmental personnel and personnel of foreign

23 governments, or personnel of the aeronautical industry.


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(b) Offset of Training Costs - The Director is hereby authorized,

2 where appropriate, to require payment of appropriate consideration to offset

3 the costs of training provided by such school or schools.

4 CHAPTER VII

5 THE DIRECTOR GENERAL

6 SEC. 36 [37]. Powers and Functions of the Director General. -

7 The Director General shall be the chief executive and operating Officer of the

8 Authority. He shall have the following powers, duties and responsibilities:

9 (I) To carry out the purposes and policies established in this Act; to

10 enforce the provisions of the rules and regulations issued in pursuance to said

11 Act; and he shall primarily be vested with authority to take charge of the

12 technical and operational phase of civil aviation matters;

13 (2) To designate and establish civil airways, to acquire, control,

14 operate and maintain along such airways, navigation facilities and to chart such

15 airways and arrange for their publication including the aeronautical charts or

16 maps required by the international aeronautical agencies, by utilizing the

17 equipment, supplies or assistance of existing agencies of the government as far

18 as practicable;

19 (3) To issue airman's certificate specifY ing the capacity in which the

20 holder thereof is authorized to serve as airman in connection with aircraft and

21 shall be issued only upon the finding that the applicant is properly qualified

22 and physically able to perform the duties of the position. The certificate shall

23 contain such terms, conditions and limitations as the Director may determine to

24 be necessary to assure safety in air commerce: Provided, however, that the

25 airman's license shall be issued only to qualified persons who are citizens of

26 the Philippines or qualified citizens of countries granting similar rights and

27 privileges to citizens of the Philippines:


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I (4) To issue airworthiness certificate for aircraft which shall

2 prescribe the duration of such certificate. the type of service for which the

3 aircraft may be used. and such other terms and conditions and limitations as are

4 required:

5 (5) To issue air carrier operating certificate in accordance with the

6 minimum safety standards for the operation of the air carrier to whom such

7 certificate is issued. The air carrier operating certificate shall be issued only to

8 aircrafts registered under the provisions of this Act;

9 (6) To issue type certi ficate for aircraft, aircraft engine, prope llers

10 and appliances:

11 (7) To inspect, classifY and rate any air navigation facilities and

12 aerodromes available for the use of aircraft as to its suitability for such use and

13 to issue a certificate for such air navigation facility and aerodrome; and to

14 determine the suitability offoreign aerodromes, air navigation facilities as well

15 as air routes to be used prior to the operation of Philippine-registered aircraft

16 in foreign air transportation and from time to time thereafter as may be

17 required in the interest of safety in air commerce;

18 (8) To issue certificates of persons or civil aviation schools giving

19 instruction in flying, repair stations, and other air agencies and provide for the

20 examination and rating thereof;

21 (9) To provide for the enforcement of the rules and regulations

22 issued under the provisions of this Act and to conduct investigation for

23 violations thereto. In undertaking such investigation, to require by subpoena ad

24 testificandum or subpoena duces tecum, the attendance and testimony of

25 witness, the production of books. papers, documents, exhibits matter, evidence,

26 or the taking of depositions before any person authorized to administer oath.

27 Refusal to submit the reasonable requirements of the investigation committee

28 shall be punishable in accordance with the provisions of this Act;


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(10) To collect and disseminate infonnation relative to cLvil

2 aeronautics and the development of air commerce and the aeronautical

3 industry; to exchange with foreign governments, infonnation pertaining to civil

4 aeronautics; and to provide for direct communication on all matters relating to

5 the technical or operational phase of aeronautics with international aeronautical

6 agencies;

7 (II) To acquire and operate such aircraft as may be necessary to

8 execute the duties and functions of the Authority prescribed in this Act;

9 (12) To plan, design, acquire, establish, construct, operate, improve,

10 maintain, and repair necessary aerodromes and other air navigation facilities;

II (13) To collect and receive charges and fees for the registration of

12 aircraft and for the issuance and/or renewal of licenses or certificates for

13 aircraft, aircraft engines, propellers and appliances, and airmen as provided in

14 this Act;

IS (14) To impose fines and/or civil penalties in respect thereto;

16 (IS) To participate actively with the largest possible degree in the

17 development of international standardization of practices in aviation matters

18 important to safe, expeditious, and easy navigation, and to implement as far as

19 practicable the international standards, recommended practices and policies

20 adopted by appropriate international aeronautical agencies;

21 (16) To exercise and perform its powers and duties under this Act

22 consistent with any obligation assumed by the Republic of the Philippines in

23 any treaty, convention or agreement on civil aviation matters;

24 (17) To cooperate, assist and coordinate with any research and

25 technical agency of the government on matters relating to research and

26 technical studies on design, materials, workmanship, construction,

27 perfonnance. maintenance and operation of aircraft, aircraft engines,

28 propellers, appliances, and air navigation facilities including aircraft fuel and


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oil: Provided. That nothing in this Act shall be construed to authorize the

2 duplication of the laboratory research, activities or technical studies of any

3 existing governmental agency;

4 (18) To designate such prohibited and danger areas, in consonance

5 with the requirements of the international aeronautical agencies and national

6 security;

7 (19) To issue, deny, suspend, cancel or revoke any certificate,

8 license pertaining to aircraft, airmen and air agencies: Provided, that any order

9 denying, suspending, cancelling, revoking the certificate or license may be

10 appealed to the Board, whose decisions shall be final within fifteen (15) days

II from date of notification of such denial, cancellation or revocation;

12 (20) To grant authorization to civil aircraft or persons to carry

13 instruments or photographic devices to be used for aerial photography or

14 taking of pictures by photograph or sketching of any part of the Philippines;

15 and

16 (21) Pursuant to a board resolution, to enter into, make and execute

17 contracts of any kind with any person, firm, or public or private corporation.

18 SEe. 37 [38]. The Office of Enforcement and Legal Service. - To

19 effectively implement the civil aviation regulatory, supervisory and

20 administrative mandates of the Director under this Act, a permanent office

21 within the Authority to be known as the Enforcement and Legal Service, to be22 composed of in-house counsels of the Authority and its necessary support staff

23 shall be established by the Board.

24 This Office shall provide adequate legal assistance and support to the

25 Director and to the Authority, as a whole, in the exercise of quasi-legislative

26 and quasi-judicial power as provided for under this Act.


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The exercise of the function by the Director to issue subpoena ad

2 testificandum, subpoena duces tecum and the imposition of any administrative

3 sanction shall be within the exclusive determination and recommendation of

4 the Enforcement and Legal Service.

5 SEe. 38 [39]. Orders. -{a) Effectiveness of Orders - Except

6 in emergency situations, all orders, rules and regulations of the Director shall

7 take effect within such reasonable times as the Director may prescribe, and

8 shall continue in force until a further order, rule or regulation, or for a

9 specified period of time, as shall be prescribed in the order rule, or regulation.

10 (b) Emergencies - Whenever the Director is of the opinion that an

II emergency requiring immediate action exists with respect to safety in civil

12 aviation, the Director shall have the power, either upon complaint or the

13 Director's initiative without complaint, at once, if the Director so orders,

14 without answer or other form of pleading by the interested person or persons,

15 and with or without notice, hearing, or the making or filing of a report, to make

16 such just and reasonable orders, rules or regulations as may be essential in the

17 interest of safety in civil aviation to meet such emergency: Provided That the

18 Director shall immediately thereafter initiate proceedings relating to the matter

19 giving rise to any such order, rule or regulation.

20 (c) Suspension and Modification of Orders. - The Director shall

21 have the power to suspend or modifY orders upon such notice and in such

22 manner as the Director shall find proper.

23 (d) Public Compliance. - It shall be the duty of every person (along

24 with any agents and employees thereof in the case of entities other than

25 individuals), subject to this Act, to observe and comply with any order, rule.

26 regulation, or certificate issued by the Director under this Act, affecting such

27 person so long as the same shall remain in effect.


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SEe. 39 [40]. Right of Access for Inspection. - (a) The Director

2 or his authorized representative shall be authorized access to civil aircraft,

3 including aerodromes, without restriction wherever they are operated within

4 the Philippines for purposes of ensuring that those aircraft are airworthy and

5 being operated in accordance with this Act, regulations issued under this Act,

6 and applicable ICAO Annexes.

7 (b) The Director or his authorized representative shall be authorized

8 access to civil aircraft registered in the Philippines without restriction wherever

9 they are operated in the world for the purposes of ensuring that these aircraft

10 are airworthy and are being operated in accordance with this Act and

11 applicable regulations and directives.

12 (c) The Director or his authorized representative shall be authorized

13 access by the Philippine air operators at any place and any time to conduct any

14 tests or inspections in their facility or offices in order to determine that those

15 operations are conducted in accordance with this Act and applicable

16 regulations and directives.

17 (d) The Director or his authorized representative shall be authorized

18 access to any aerodromes, whether privately or government-owned, to conduct

19 inspections or evaluation of the facilities therein in order to determine that its

20 operations are conducted.

21 SEe. 40 [41). Authority to Prevent Flight. - (a) The Director is

22 authorized to direct the operator or airman of a civil aircraft that the aircraft is

23 not to be operated in situations where:

24 (I) The aircraft may not be airworthy; or

25 (2) The airman may not be qualified or physically or mentally

26 capable for the flight; or


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(3) The operation. would cause imminent danger to persons or

2 property on the ground.

3 (b) The Director may take such steps as are necessary to detain such

4 aircraft or airmen.

5 SEC. 41 [42]. Creation of Flight Standards Inspectorate Service.

6 - (a) The Board, other than the offices it shall create in furtherance of this Act,

7 shall establish a permanent office known as the Flight Standards Inspectorate

8 Service (FSIS) that will assist the Director in carrying out the responsibilities

9 of his office for certification and ongoing inspections of aircraft, airmen and air

10 operators.

II The FSIS shall perform the following functions:

12 (a) Airworthiness inspection;

13 (b) Flight Operations Inspection and Evaluation; and

14 (c) Personnel Licensing.

15 Furthermore, the Board shall create, but not limited to, the following

16 offices which will provide support to the functions of the Flight Standard

17 Inspectorate Service, namely: Aircraft Registration, Aircraft Engineering and

18 Standards, Airmen Examination Board and Office of the Flight Surgeon.

19 SEe. 42 [43]. Validation. - The Director is authorized, in the

20 discharge of his certification and inspection responsibilities, to validate the

21 actions of the civil authority of another State in lieu of taking the specific

22 action, with the following restrictions:

23 (I) For actions on airman or airworthiness certificates, the other State

24 must be a signatory to the Chicago Convention and be fulfilling its obligations

25 under the Chicago Convention with respect to the issuance and currency of

26 these certificates; and


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I (4) For actions applicable to air operators, the Director. must

2 exercise discretion and require supporting documents. The Director should

3 ensure that, when validation is based on the actions of another civil aviation

4 authority, there is no information to indicate that the State does not meet its

5 obligations under the Chicago Convention regarding certification and ongoing

6 validation of its air operators.

7 SEC. 43 [44]. Aircraft Accident Investigation and Inquiry Board.

8 - Pending the establishment of an independent and separate government

9 agency created to conduct investigation of accidents on land, air and water, the

10 Director shall organize an Aircraft Accident Investigation and Inquiry Board

II (AAIlB), to be composed of personnel of the Authority specialized in the

12 various disciplines of civil aviation. The Board shall appoint the head of the

13 AAIlB.

14 (a) Reporting of Accidents - The Board shall promulgate rules

15 and regulations governing the notification and the reporting of accidents

16 and incidents involving aircraft.

17 (b) General Authority to Investigate - Except as provided in

18 Subsection C of this section, the Director shall have:

19 (I) The power to investigate, or arrange by contract or

20 otherwise for the investigation of, accidents involving aircraft occurring

21 in the Philippines and civil aircraft registered in the Philippines

22 occurring outside the territory of any foreign country for the purpose of

23 determining the facts, conditions and circumstances relating to each

24 accident and the probable cause thereof; and

25 (2) The authority to participate In the investigation of

26 accidents involving aircraft registered in the Philippines occurring


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outSoide the territory of a foreign country, consistent with any treaty.

2 convention. agreement, or other arrangement between the Philippines

3 and the country in whose territory the accident occurred;

4 (c) Accident Prevention - The Director shall take any

5 corrective actions which, on the basis of the findings of the accident

6 investigations authorized under this Section, that, in the judgment of the

7 Director, will tend to prevent similar accidents in the future.

8 (d) Investigation of Accidents Within Military Sites -9 Notwithstanding any other provision of this section, and. the

10 investigation of an accident involving aircraft occurring within military

I I sites in the Philippines, or an accident involving solely an aircraft of the

12 armed forces of any foreign country occurring in the Philippines, shall

13 be the responsibility of the military. For the purpose of this subsection,

14 the term 'military sites' means those areas within the Philippines which

15 are under the control of the military of the Philippines or the military of

16 another country.

17 (e) Use as Evidence - No part of any report or reports of the

18 Director relating to any accident, or the investigation thereof, shall be

19 admitted as evidence or used in any suit or action for damages arising

20 out of any matter mentioned in such report or reports except when the

2I criminalliabilities/aspects of the accident is put into issue.

25 (a) Establish and maintain a system for the national registration of

26 aircraft in the Philippines;


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I (b) Establish and maintain a system. for the registration of liens,

2 mortgages or other interests in aircraft or aircraft engines; and

3 (c) Have sole authority to register aircraft and liens, mortgages or

4 other interests in aircraft or aircraft engines.

5 SEe. 45 [46]. Eligibility for Registration. - Except as otherwise

6 provided in the Constitution and existing treaty or treaties, no aircraft shall

7 be eligible for registration unless it is owned by or leased to a citizen or

8 citizens of the Philippines or corporations or associations organized under9 the laws of the Philippines at least sixty per centum (60%) of whose capital

10 is owned by Filipino citizens. That, under such rules and regulations to be

II promulgated by the Board foreign-owned or registered aircraft may be

12 registered if utilized by members of aero clubs organized for recreation,

13 sport or the development of flying skills as a pre-requisite to any

14 aeronautical activities of such clubs within the Philippine airspace. (R.A.

15 776, P.O. 1278, E.O. 546. and B.P. 504)

16 Such certificate shall be conclusive evidence of nationality for

17 international purposes, but not in any proceeding under the laws of the

18 Republic of the Philippines.

19 The certificate of registration is conclusive evidence of ownership,

20 except in a proceeding where such ownership is, or may be, at issue.

21 SEe. 46 [47]. Application for Aircraft Registration,

22 Applications for certificate of registration shall be made in writing, signed

23 and sworn to by the owner or lessee of any aircraft or aircraft engine eligible

24 for registration. The application shall also state: (I) the date and place of

25 filing; (2) the specification, construction and technical description of the

26 aircraft or aircraft engine; and (3) such other information as may be required


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by the Authority in such manner and form as the Authority may prescribe by

2 regulation.

3 SEe. 47 [48]. Issuance of Certificate of Registration. - Should

4 the Director, upon considering the application for registration, find the

5 aircraft or aircraft engine eligible for registration, such aircraft shall be

6 registered under the provisions of this Act and the owner thereof shall be

7 issued a certificate of registration.

8 SEC. 48 [49]. Nationality. - An aircraft shall acquire Philippine

9 nationality when registered pursuant to this Act.

10 SEC. 49 [50]. Revocation. - Any certificate of

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