23th 
Congress of the Republic 
) 
of the Philippines 
) 
'04 ,;;/q 
30 fll : i 2  
First Regular Session 
1 
by Smator Aquilirio Q. Pimmtel, Jr. 
ss is apowax?d to g m t  franchises for the operation of 
public utilities. It may dso delegate such power to administrative 
ElgCTldes. 
The doresaid Congressional pm 
Wouded by the 
owd that it has the 
e m d  Necessity to 
elah was rehfo~eel 
by a Court of Appeals decision in A
m
 
Filiphas 
International vs. Civil Amnau~cs 
Board, CA-GR No. 23365SP 
wherein the Court d e d  that CAB may issue a Certificate of Public 
Convdmce md Nmes 
to a domestic air s d c e .  h fact, the CiviI 
Aeronautics Board has issued a Temp~rq 
operate a scheduled domestic air service to a comp 
air s&ce. 
d a h  m d  position of the Civil Aer 
authority to issue a Certificate of Pub1 
Oper&2 dQl33&iC E& 
S&Ce 
perSS%lS Who hi3W %lot yet h 
$!Jmkd 
a legislative frm&se to engage 2rm air c o m a e  of" trmsportation. me 
been @Wkd a legislative hm&se dl 
There is therefore a need for legislation to put an md to the 
above codict md to lay the policy hvo 
this ma-. 
c 
AQ~ILINO FIMENTEL JR. 


S.Nai.2 . 
h . 
%e if enacted by the Senate and H o ~ s e  
of Rqresentgtives of fhze Philippines ilz Congress 
assembled: 
SECTION 1. Titla - TMs Act shall be knawn as the 'Domestic Air Service 
Act crf 2004." 
SEC. 2. Dectaratian af Poficy. - It is hereby declared the poky sf the State 
to make the grant of a €e@slative franchise a requirement far the operation of 
domestic air service in the Philippines. 
SEC, 3. Definitians of Terns. - Far purposes of this Actt the fallowing shaII 
mean: 
fa) Legishztive Franchise - An authorization granted by Congress to an 
applicant to engage in domestic air carrier service. 
(b) Domestic Air Semice - The business af transporting by aircraft, persons, 
property andlor mail, to and from points w i t h  the territorial 
jurisdiction of the Republic of the PMippines. 
SEC. 4, Operation af Domestic Air Semice. - Any provision af existkg law 


€0 the contrary notwithstanding, no person &all operate a domestic air service 
without first securing a legislative franchise, 
SEC. 5. Franckise, A Condition Sate Qua-Non, - No person shall be granted 
a Certificate of Public Convenience and Necessity (CXaCN) or a Temporary 
Qperating Permit: (TOP) to operate a domestic air service or other authority of a 
similar nature unless such person shall have first been granted a legislative 
franchise to engage in domestic air service, 
SEC. 6. Revocation c ~ ~ A z E ~ ~ o  
'ty. - A11 Certificates of Public Convenience 
and Necessity or Temporary Operating Pennits to operate a domestic air service or 
other authority of sirnilar nature previously granted to persons who have not been 
granted a legislative franchise to engage in domestic air service are hereby 
revoked, 
i 
SEC, 7. Xmpkmelzt&gAgenct$. - The Civil Aeronautics Board (CAB) shall be 
the agency primarily tasked with the implementation of the objectives and 
provisians of this Act. 
The CAB shall, pending acquisition of a legislative franchiset dismiss all 
applications for Certificate of Public Convenience and Necessity or Temporary 
Operating Permits to operate a domestic air service, or other autharity of a similar 
nature filed by persons who have not been previously granted a legislative 
fkanchise, without prejudice to such applications being refiled. 
SEC.. 8. Separabilify Clazae. - In the event that my provision of this Act is 
declared invalid and unconstitutional, the remainder of this Act shall not lee 
affected by such declaration. 
SEC, 9. Repeali'rrgr Clause. - AII law, decrees, executive orders, rules and 


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reguIatians or m y  part thereof: inconsistent with the provisions of this Act are 
hereby repealed ar modified accordingly. 
SEC, IO. Efecfiuftg Claase. - This Act shall take effed fifteen (15) days after 
its publication in the Qficid G&effe and in at Ieast two (2) national newspapers of 
general circulation.