,~' 
SIXTEENTH CONGRESS OF TI-IE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.B. 
2866 
Introduced by Senator Poe 
AN ACT 
.. RECEIVEr> BY:~~ 
TO FURTHER STRENGTHEN THE RELIABILITY OF AIR TRANSPORTATION 
FOR THE SAFETY OF FILIPINO PASSENGERS, AMENDING FOR THE PURPOSE 
REPUBLIC ACT 9497, OTHERWISE KNOWN AS THE CIVIL AVIATION 
AUTHORITY ACT OF 2008 
EXPLANATORY NOTE 
Republic Act 9497, otherwise known as the Civil Aviation Act of2008 was signed into 
law on March 4, 2008. The law abolished the Air Transportation Office (A TO) and in its place, 
the Civil Aviation Authority of the Philippines (CAAP) was created, which is mandated to set 
comprehensive, clear, and impartial rules for the aviation industry. In the same law, the CAAP 
shall be an independent regulatory body with quasi-judicial and quasi-legislative powers with 
corporate attributes. 
Prior to the passage ofRA 9497, the US Federal Aviation Authority (FAA) downgraded 
the Philippines to Category 2 status in 2007 after finding 88 critical elements. The "downgrade" 
meant the FAA had concerns over the ability of its counterpart (formerly ATO) to implement 
global aviation standards, which include security and safety, among others. 
As of early this year, the technical review report of the FAA cited 23 "critical elements" 
that still have to be addressed for the improvement of the country's aviation status. The 
remaining "critical elements" include fine-tuning of the Philippine Civil Air Regulations, 
changing the CAAP's safety and oversight structure, updating its database storing system, 
standardizing their certification of safety inspectors, and revalidating airline carriers, among 
others . 
• The recent efforts of CAAP have led to the resolution of many of the regulatory 
concerns raised, as indicated by the restoration of the Philippines to Category I status in April 
2014 and the lifting of the ban by the EU on Philippine carriers to mount flights into Europe. 
This proposed measure seeks to fully address the still perceived deficiencies in the 
supervision and management of the Philippine civil aviation industry and to strengthen CAAP 
as the country's designated civil aviation authority. 
CAAP was already given positive endorsement by the European Commission when it 
gave the Philippines the category upgrade. This means that international aviation bodies can 


now "rely on CAAP's judgment regarding the safety of other airlines for in-country use" by 
international travellers. 
There is a need to pass these amendments in order to sustain and not to derail CAAP's 
efforts which once again allowed carriers to offer direct flights from the Philippines to Europe 
and to more destinations in the United States as it continues to work with international aviation 
bodies to improve and upgrade the status of Philippine aviation. 
Highlighting the amendments being proposed in this legislation include: 
• 
Increasing the term of the Director General (DG) to seven years 
Increasing the DG's term of office to 7 years - in the CAAP law is consistent with the 
intent of strengthening CAAP as a regulatory body. The Legislature in enacting the CAAP law 
is sought to insulate the agency from the constantly changing political climate in the Executive 
Department. The mandate is to cause the restructuring of the civil aviation system, the 
promotion, development and regulation of the technical, operational, safety, and aviation 
security functions," which can hardly be realized under a DG who has no security of tenure 
and would, constantly find difficulty in instituting reforms attuned to international standards in 
civil aviation if he is interrupted by factors other than removal for cause. 
• 
Enhanced fiscal autonomy 
The amendment pertaining to increased fiscal autonomy is intended to minImize 
difficulties in securing prompt concurrence of budget allocations and expenditures. This is 
significant considering the peculiar character of projects relating to regulatory and aviation 
safety oversight functions. 
• 
Exemption of CAAP from the Salary Standardization Law (SSL) 
The proposed exemption from the Salary Standardization Law is based the fact that ilie 
qualifications and functions performed by CAAP directors, officers, and employees are 
different from those performed by other "government employees" as distinctly and highly 
technical in nature. 
The amendment is anchored too on the reported impending global shortage of aviation 
professionals and aviation safety professionals. Taking the US as an example, in the next 20 
years, there will be a need to add 25,000 new aircrafts to the current 17,000-strong commercial 
fleet. By 2026, there will be a need for 480,000 new technicians to maintain these aircrafts and 
over 350,000 pilots to fly them. Between 2005 and 2015, 73% of the American air traffic 
controller population is eligible for retirement. The underlying problem, simply stated, ilie 
demand for aviation professionals will exceed supply. The scenario is the same here in ilie 
Philippines. rCAO enumerates factors for ilie decline and possible shortage to include 
"wholesale retirements in the current generation of aviation professionals, aviation professions 
not attractive enough to potential candidates, competition with other industry sectors for skilled 
employees, training capacity insufficient to meet demand, learning methodologies not 
responsive to new evolving learning style, accessibility to affordable training, lack of 
harmonization of competencies in some aviation disciplines." 


The proposed amendments, likewise, seek to make the aviation industry more attractive 
to professionals by granting 
CAAP, as lead authority, with a more flexible and less 
bureaucratic entry process workers, officials, and aviation technicians and professionals 
There is a dire need for these amendments. The lingering concern over the issue of the 
ability of the CAAP to implement safety standards affects the government's tourism targets 
since CAAP plays a key role in promoting tourism as one of the Philippine economy's growth 
sectors. 
In 2013, tourist arrivals reached an all-time high of 4.7 million. The Aquino 
administration is aiming to increase this to 10 million by 2016. Achieving the government's 
target ofluring 10 million foreign tourist by 2016 increases certainty if the upgrade is sustained. 
This will certainly make the country more competitive and contribute tremendously in 
achieving the 10 million target by 2016. 
The CAAP is the regulatory body responsible for air safety within Philippine borders. 
This is the reason it has to adhere to the requirements and standards set by international aviation 
authorities and make them feel confident that carriers under its direct supervision that fly into 
other jurisdictions pose no risk and meet an internationally accepted set of safety and 
competence standards. 
Reforming air transportation is critically important to the Philippines, not so much as it 
is a determining factor to the full realization of the latter's potential as a tourist and business 
destination, but more importantly, to provide safe and efficient travel for the citizens and 
visitors in the country that they truly deserve. 
There is a need to pass this legislation immediately because the safety of passengers 
and reliability of air transportation in the Philippines are of paramount importance. 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
·15 . JUl 2~ 1'12:11 
SENATE 
i 
Jr-' 
S.B. 
2866 
'Rf.:CEIVEO r:- u-
----------------______________________________________ ----__________________________________________________ L __ _ 
Introduced by Senator Poe 
AN ACT 
b 
TO FURTHER STRENGTHEN THE RELIABILITY OF AIR TRANSPORTATI N 
FOR THE SAFETY OF FILIPINO PASSENGERS, AMENDING FOR THE PURPdsE 
REPUBLIC ACT 9497, OTHERWISE KNOWN AS THE CIVIL AVIATIbN 
AUTHORITY ACT OF 2008 
i 
I 
Be it enacted by the Senate and House of Representatives of the Philippines in ConJSfless 
assembled: 
I 
. I 
SECTION, I. Section 2 of Republic Act No. 9497, otherwise known as the divil 
Aviation Authority Act of2008 is hereby amended to read as follows: 
I 
"SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to pro~ide 
safe and efficient air transport and regulatory services in the Philippines by providing 
for the creation of a civil aviation authority with jurisdiction over the restructuring of 
the civil aviation system, the promotion, development and regulation of the technifaI, 
operational, safety, and aviation security functions under the civil aviation authority lIN 
FURTHERANCE OF THE OBLIGATIONS OF THE PHILIPPINES TO THE 
, 
INTERNATIONAL COMMUNITY AS A CONTRACTING STATE IN ALL 
RELEVANT TREATIES INCLUDING THE CHICAGO CONVENTION," 
I 
TOWARD THIS END, THE GOVERNMENT SHALL EXTEND ALL MEAI'JS 
AND MECHANISMS NECESSARY FOR THE AUTHORITY TO FULFI~L 
ITS VITAL TASK OF PROMOTING AND 
ENSURING SAFE ANI D 
EFFICIENT AIR 
TRANSPORT. 
I 
IN VIEW OF ITS CRUCIAL ROLE, AND THE NATURE, POWERS AND 
FUNCTIONS 
OF 
THE 
AUTHORITY, 
AS 
A 
GOVERNMENT 
INSTRUMENTALITY WITH CORPORATE POWERS, IT SHALL ENJOY 
FISCAL AND ADMINISTRATIVE AUTONOMY. 
SEC. 2. Section 4 of the same Act is hereby amended to read as follows: 
1 


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"SEC. 4. Creation ofthe Authority. - There is hereby created an independent regulatory 
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body with quasi-judicial and quasi-legislative powers and possessing corporate 
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attributes to be known as the Civil Aviation Authority of the Philippines (CAAP), 
4 
hereinafter referred to as the "Authority" attached to the Department of Transportation 
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and Communications (DOTC) SOLELY for the purpose of policy coordination. For 
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this purpose, the existing Air Transportation Office created under the provisions of 
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Republic Act No. 776, as amended, is hereby abolished. 
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xxx 
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(al APPOINTMENT AND TERM OF OFFICE Director General - The Authority 
12 
shall be headed by a Director General of Civil Aviation, referred to in this Act as the 
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"Director General" who SHALL BE RESPONSIBLE FOR ALL NON-
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ECONOMIC ASPECTS OF civil aviation in the Philippines and the administration 
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of this Act. NOTWITHSTANDING THE PROVISIONS OF REPUBLIC ACT 
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10149, OTHERWISE KNOWN AS THE GOCC GOVERNANCE ACT OF 2011, 
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[TJhe Director General shall be appointed BY THE PRESIDENT OF THE 
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PHILIPPINES based on the qualifications herein provided and shall have a TERM of 
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office for a period of SEVEN (7) years. His appointment may be extended for another 
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non-extendible term of SEVEN (7) years and shall only be removed for cause in 
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accordance with the rules and regulations prescribed by the Civil Service Commission. 
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IN CASE THE DIRECTOR GENERAL FAILS TO COMPLETE HIS TERM, 
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HIS SUCCESSOR SHALL ONLY SERVE FOR THE UNEXPIRED PORTION 
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OF THE TERM OF HIS PREDECESSOR. NO DIRECTOR GENERAL CAN 
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SERVE IN OFFICE FOR MORE THAN FOURTEEN (14) YEARS. 
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THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT THE 
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DIRECTOR GENERAL FROM A SHORTLIST OF THREE NOMINEES 
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PREPARED BY THE BOARD OF DIRECTORS CONSTITUTED AS A 
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SEARCH COMMITTEE COMPOSED OF FIVE MEMBERS THEREOF WHO 
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SHALL RECEIVE AND EVALUATE NOMINATIONS. NO INCUMBENT 
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DIRECTOR GENERAL SHALL BE A MEMBER OF THE SEARCH 
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COMMITTEE. 
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xxx" 
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SEC. 3. SECTION 5 OF THE SAME ACT IS HEREBY AMENDED AS FOLLOWS: 
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The corporate powers of the Authority shall be vested in a Board which is composed 
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of seven (7) members, namely: the Secretary of the Department of Transportation and 
42 
Communications as chairman ex officio, the Director General of Civil Aviation 
43 
(DGCA) as the Vice Chairman and five (5) members from the private sector. 
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In his absence, the Chairman shall designate an undersecretary of the DOTC to act in 
46 
his behalf as Chairman. The Director General, in his absence, shall designate a Deputy 
47 
Director General of the Authority to act as Vice Chairman. 
48 
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The members from the private sector shall be citizens of the Philippines, at least thirty-
50 
five years old, of good moral character, unquestionable integrity, of known probity and 
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with recognized competence in the field of management, civil aviation, and related 
fields. To be appointed by the President. 
SEC 4. Section 9 of the same Act is hereby amended to read as follows: 
"SEC. 9. Qualifications of Director General. - No person shall be appointed as the 
Director General unless he is a Filipino citizen, at least thirty-five (35)years of age, , of 
good moral character, unquestionable integrity, recognized competence and a [ degree 
holder with at least five (5)years supervisory or management experience in the field of 
aviation. " 
SEC.5. Section 12 of the same Act is hereby amended to read as follows: 
"SEC. 12. Personnel. THE DIRECTOR GENERAL SHALL EXERCISE 
APPOINTING AND DISCIPLINING POWERS OVER ALL PERSONNEL OF 
THE AUTHORITY. 
CONSIDERING THE HIGHLY TECHNICAL CHARACTER AND 
NATURE OF THE FUNCTIONS OF THE AUTHORITY, ITS PERSONNEL 
SHALL BE EXEMPTED FROM THE REQUIREMENTS PRESCRIBED 
UNDER THE RULES GOVERNING THE CAREER EXECUTIVE SERVICE. 
ALL LAWS, RULES, AND REGULATIONS, GOVERNING POSITIONS, 
CLASSIFICATIONS AND QUALIFICATION STANDARDS INCLUDING, 
BUT NOT LIMITED TO, PRESIDENTIAL DECREE 985, REPUBLIC ACT 
6758 AS AMENDED, JOINT RESOLUTION 4 (2009 OF THE PHILIPPINE 
CONGRESS) AND REPUBLIC ACT 10149." 
SEC. 6. Section 18 of the same Act is hereby amended to read as follows: 
"SEC. 18. Compensation and Other Emoluments of Authority Personnel. - Within six 
(6) months from the effectivity of this Act, the Board shall determine the new schedule 
of salaries of the employees of the Authority subject to the compliance with the existing 
compensation laws AND REVISE THE SAME FROM TIME TO TIME AS IT 
MAY DEEM NECESSARY: Provided, That the Board shall determine and fix the 
compensation, EMOLUMENTS and fringe benefits of employees holding technical 
positions. IT SHALL PROVIDE ANNUAL REVIEWS OR INCREASES BASED 
ON PRODUCTIVITY. 
, 
SEC. 7. A new section 18-A is hereby inserted in Republic Act 9497, to read as follows: 
"SEC. 18-A. MANAGEMENT OFFICIALS AND EMPLOYEES; MERIT 
SYSTEM. THE 
BOARD SHALL ESTABLISH A HUMAN RESOURCES 
MANAGEMENT 
SYSTEM, 
WHICH 
SHALL 
PROMOTE 
PROFESSIONALISM AT ALL LEVELS OF 
THE 
AUTHORITY 
IN 
ACCORDANCE WITH SOUND PRINCIPLES OF 
MANAGEMENT. 
3 


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A PROGRESSIVE COMPENSATION STRUCTURE, BASED ON, AND 
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EQUIVALENT TO THE STANDARDS OF THE AVIATION INDUSTRY, AS 
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PRACTICED AND OBSERVED IN THE INTERNATIONAL A VIA TION 
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INDUSTRIES, 
INCLUDING 
THE 
STANDARDS 
SET 
BY 
THE 
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INTERNATIONAL CIVIL AVIATION ORGANIZATION, SHALL BE 
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ADOPTED AS 
AN INTEGRAL COMPONENT OF THE AUTHORITY'S 
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HUMAN RESOURCES 
PROGRAM." 
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SEC. 8. A new section 18-B is hereby inserted in Republic Act 9497, to read as follows: 
10 
II 
"SEC. I8-B. EXTRA COMPENSATION. - ALL RATED AND/OR LICENSED 
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AIRMEN AND SUCH OTHER PERSONS OF THE AUTHORITY WHO MAY 
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BE AUTHORIZED TO UNDERTAKE OR PERFORM REGULAR AND 
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FREQUENT FLIGHTS IN THE PERFORMANCE OF THEIR DUTIES, 
IS 
SHALL RECEIVE, IN ADDITION TO THEIR BASE PAY, AN INCREASE IN 
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COMPENSATION OF AT LEAST FIFTY PERCENTUM (50%) OF THEIR 
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RESPECTIVE BASE PAY; PROVIDED, HOWEVER, THAT THE NUMBER 
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OF 
HOURS 
ACTUALLY 
FLOWN 
BY 
SUCH 
AIRMEN 
AND 
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AUTHORIZED PERSONNEL SHALL NOT BE LESS THAN FOUR (4) PER 
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MONTH. 
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WHENEVER 
THE 
DIRECTOR-GENERAL 
SHALL 
REQUIRE 
ANY 
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EMPLOYEE OF THE AUTHORITY TO WORK BEYOND THE USUAL 
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OFFICE HOURS OR ON HIS NON-WORKING DAY, SUCH EMPLOYEE 
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SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMPENSATION 
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EQUIVALENT TO AT LEAST TWO HUNDRED PERCENTUM (200%) OF 
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HIS REGULAR SALARY." 
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SEC. 9. A new section 18-C is hereby inserted in Republic Act 9497, to read as follows: 
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"SEC.I8-C. EMPLOYMENT OF PERSONS FOR CONFIDENTIAL, HIGHLY-
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TECHNICAL AND POLICY DETERMINING POSITIONS. - THE DIRECTOR 
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GENERAL MAY MAKE 
APPOINTMENTS TO CONFIDENTIAL, HIGHLY 
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TECHNICAL, AND POLICY DETERMINATION POSITIONS AS MAY BE 
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REQUIRED BY THE FUNCTIONS AND 
RESPONSIBILITIES OF THE 
37 
OFFICE." 
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SEC. 10. Section 24 of the same Act is hereby amended to read as follows: 
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"Sec. 24-A. Powers of the Board. The Board shall have the following general powers: 
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xxx 
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(d) ANY LAW TO THE CONTRARY NOTWITHSTANDING, ORGANIZE, RE-
47 
ORGANIZE, AND Determine the organizational structure of the Authority in 
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accordance 
with the provisions of this Act, establish a human resources management 
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system based on 
merit and fitness, CREATE, TRANSFER, RE-ALIGN AND 
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ABOLISH OFFICES AND POSITIONS, and adopt a rational compensation and 
4 


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benefits scheme EQUIVALENT TO THE STANDARDS SET BY THE 
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INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO); 
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xxx 
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(T) APPROVE POLICY ON LOCAL AND FOREIGN TRAVEL, AND THE 
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CORRESPONDING 
EXPENSES, 
ALLOWANCES, 
PER 
DIEMS 
OF 
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OFFICERS, 
EMPLOYEES, 
AGENTS 
OF 
THE 
AUTHORITY, 
9 
NOTWITHSTANDING THE PROVISIONS OF PRESIDENTIAL DECREE NO. 
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1177, EXECUTIVE ORDER 292, EXECUTIVE ORDER 248, AS AMENDED, 
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EXECUTIVE ORDER 298, AND SIMILAR LAWS; 
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(U) EXERCISE THE POWER OF EMINENT DOMAIN FOR THE PURPOSE 
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OF 
THIS ACT IN THE MANNER PROVIDED BY LAW, PARTICULARLY, 
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THE PREREQUISITES 
OF TAKING 
OF POSSESSION AND 
THE 
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DETERMINATION AND PAYMENT OF JUST COMPENSATION; AND 
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(V) THE BOARD MAY PERFORM SUCH ACTS, THRU THE DIRECTOR 
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GENERAL 
OR 
APPROPRIATE 
OFFICE, 
CONDUCT 
SUCH 
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INVESTIGATION IN THE PERFORMANCE OF ITS QUASI JUDICIAL 
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FUNCTIONS, AS IT SHALL DEEM NECESSARY TO CARRY OUT THE 
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PROVISIONS OF THIS ACT. 
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IN EXERCISING THE POWERS GRANTED UNDER THIS ACT, THE 
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BOARD SHALL GIVE FULL CONSIDERATION TO THE REQUIREMENTS 
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OF NATIONAL DEFENSE, COMMERCIAL AND GENERAL AVIATION, 
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AND TO THE PUBLIC RIGHT OF TRANSIT THROUGH NAVIGABLE 
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AIRSPACE." 
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SEC II. The following subsections of Sec.24-A are hereby deleted: sub-sections e, f, j, m, q, r 
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and s. 
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SEC.l2. A new section 24-B is hereby inserted in Republic Act 9497, to read as follows: 
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"SEC. 24-B. DELEGATION OF POWER. -
THE BOARD MAY, BY 
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RESOLUTION APPROVED AT A BOARD MEETING, DELEGATE ALL OR 
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ANY OF ITS POWERS TO THE DIRECTOR-GENERAL, A MEMBER OF 
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THE BOARD OR A COMMITTEE. THE DELEGATE IS, IN THE EXERCISE 
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OF A DELEGATED POWER, REMAINS SUBJECT 
TO THE CONTROL 
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AND SUPERVISION OF THE BOARD. THE DELEGATION 
MAY 
BE 
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REVOKED BY RESOLUTION OF THE BOARD. 
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THIS PROVISION SHALL HAVE RETROACTIVE EFFECT INSOFAR AS IT 
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DOES NOT PREJUDICE OR IMPAIR VESTED OR ACQUIRED RIGHTS IN 
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ACCORDANCE WITH EXISTING LAWS." 
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SEC 13. Section 25 is hereby amended to read as follows: 
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SEC. 25. Issuance of Rules and Regulations. - the Director General, shall issue and 
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provide for the enforcement of s~ch orders, rules and regulations as may be necessary to give effect 
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to the provisions of this Act. Allj rules and regulations issued in accordance with the provisions of 
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this Act shall be formally prolmjlgated and periodically reviewed and updated in accordance with 
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the requirements of the Administrative Code of the Philippines or any amendment or successor 
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thereto and the International Civil Aviation Organization Standards and Recommended Practices. 
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SEC.l4. Section 26 of the same Act is hereby amended to read as follows: 
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"SEC. 26. Setting of Charges and Fees. - The Board, after consultation with the Director 
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General, and after public hearing, shall determine, fix, impose, collect or receive 
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reasonable charges, fees, dues or assessments in respect of aviation certificates, licenses 
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and all other 
authorizations or permissions authorized to be issued under this Act and 
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all services performed by the Authority BASED ON THE PRINCIPLE OF COST 
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RECOVERY. All charges and fees shall be formally promulgated in accordance with 
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the requirements of the Administrative Code of the Philippines or any amendment or 
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successor thereto. Pending the promUlgation of such new schedule of charges and fees, 
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the current charges and fees of the A TO shall continue to apply." 
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SEC 15. Section 27 of the same Act is hereby amended as follows: 
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SEC. 27. Issuance of Rules oIProcedure and Practice. - The Director General shall issue or 
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amend rules of procedures and wactice before the CAAP in relation to its regulatory function as 
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may be required by the provisions of this Act or issue and adopt rules and regulations to implement 
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the regulatory issuances of the ICAO. 
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SEC 16. Sec 28 of the same Act is hereby amended as follows: 
SEC. 28. Appellate Jurisdiction - All decisions, rulings, resolutions of the Board and the 
Director General are appealable to the Court of Appeals. 
SEC.l7. Section 30 of the same Act is hereby amended to read as follows: 
"SEC. 30. Annual Budget. THE AUTHORITY SHALL ADOPT AN ANNUAL 
BUDGET TO FUND THE OPERATIONS OF THE AUTHORITY. 
UNLESS 
THE AUTHORITY SHALL REQUIRE SUBSIDY AND/OR 
GUARANTEE 
OF ITS LIABILITY FROM THE NATIONAL TREASURY, ITS 
BUDGET 
FOR THE YEAR NEED NOT BE SUBMITTED TO CONGRESS FOR 
APPROVAL ANDINCLUSION IN THE GENERAL APPROPRIATIONS ACT. 
SUPPLEMENTARY BUDGET MAY BE PREPARED AND ADOPTED AT A 
BOARD MEETING CALLED FOR THAT PURPOSE." 
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SEC.18. Section 35 of the same Act is hereby amended to read as follows: 
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"SEC. 35. Powers and Functions of the Director General. - The Director General shall 
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be the chief executive and operating officer of the Authority. He shaIl have the 
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following powers. duties and responsibilities: 
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XXX 
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(e) To issue air OPERATOR certiticate in accordance with the minimum safety 
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standards for the operation of the air carrier to whom such certificate is issued. The 
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ail' OPERATOR certificate shall be issued only to aircrafts registered 
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underthe provisions of this Act. 
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AN AIR OPERATOR CERTIFICATE HOLDER MAY OPERATE AND USE 
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FOREIGN REGISTERED AIRCRAFT PROVIDED THAT ITS STATE OF 
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REGISTRA TION DEL EGA TES TO THE DIRECTOR GENERAL THE 
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TECHNICAL AND SAFETY OVERSIGHT FUNCTIONS OVER THE 
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AIRCRAFT AND/OR ITS CREW, AS APPLICABLE. 
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(d) Determine the organizational structure of the Authority in accordance with the provisions of 
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this Act, establish a human resources management system based on merit and fitness, and adopt a 
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rational compensation and benefits scheme; Exercise appellate powers to order the taking of 
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depositions in any proceeding, or investigation. pending before the Board at any stage of such 
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proceeding or investigation; 
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(I) Promulgate rules and regulations as may be necessary in the interest of safety in air commerce 
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pertaining to the issuance of the airman's certificate including the licensing of operating and 
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mechanical personnel, type certificate for aircraft, aircraft engines, propellers and appliances, 
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airworthiness certificates. air carrier operating certificates, air agency certificates, navigation 
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facility and aerodrome certificates; air traffic routes; radio and aeronautical telecommunications 
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and air navigation aids; aircraft accident inquiries; aerodromes, both public and private-owned; 
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construction of obstructions to aerodromes; height of buildings; antennae and other edifices; 
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registration of air crafts; search and rescue; facilitation of air transports; operations of air crafts, both 
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for domestic and international, including scheduled and non-scheduled; meteorology in relation to 
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civil aviation; rules of the ail'; air traffic services; rules for prevention of collision of aircrafts, 
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identification of aircraft; rules for safe altitudes of flight; and such other rules and regulations, 
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standards, governing other practices. methods and/or procedures as the Director General may find 
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necessary and appropriate to provide adequately for safety regularity and efficiency in air 
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commerce and air navigation. 
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(v) Adopt a system for the registration of aircraft as hereinafter provided; 
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SEC 19. Section 40 of the Same Act is hereby amended as follows: 
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SEC. 40. Creation of Flight Standards Inspec/(Jrate Service. - (a) \a permanent office known as 
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the Flight Standards Inspectorate Service (FSIS) shall be established to assist the Director General 
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in carrying out the responsibilities of his office for certification and ongoing inspections of aircraft, 
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airmen and air operators. 
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The FSIS shall perforlll the following functions: 
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(I) Airworthiness inspection; 
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(2) Flight operations inspection and evaluation; and 
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(3) Personnel licensing. 
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SEC. 20. Section 73 of the same Act is hereby amended to read as follows: 
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"SEC. 73. Statutory Lien AND POWER TO DETAIN. - The Director Generalshall 
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have the power to impose lien on AND DETAIN aircraft and machinery: 
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(a)Ifthe charges and other fees are not paid in full on due date or any part ofthe charges 
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or the late payment penalty thereto remains unpaid; and 
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(b)Failure to pay administrative fines arising from violation of any rules and regulations 
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promulgated by the Authority." 
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SEC. 21. A new section 84-A is hereby inserted in Republic Act 9497, to read as 
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follows: 
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"SEc' 84-A. EXEClJTION OF MONETARY JUDGMENT. -THE DIRECTOR 
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GENERAL IS AUTHORIZED TO ENFORCE MONETARY JUDGMENTS 
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THROUGH THE SHERIFF WHO SHALL DEMAND THE IMMEDIATE 
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PAYMENT OF THE FULL AMOUNT STATED IN THE WRIT OF 
24 
EXECUTION TO BE IMPOSED FOR EACH VIOLATION OF THIS ACT. 
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FOR THIS PURPOSE, THE DIRECTOR GENERAL MAY ISSUE AN ORDER 
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DIRECTING THE SHERIFF TO REQUEST THE ASSISTANCE OF LAW 
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ENFORCEMENT AGENCIES TO, ENSURE COMPLIANCE WITH THE 
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WRIT OF EXECUTION, ORDERS QR PROCESSES." 
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SEC. 22. Repealing Clause - All laws, decrees, executive orders, rules and regulations 
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and other issuances or part thereof, which are inconsistent with this Act, are hereby repealed, 
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amended, or modified accordingly. 
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SEC. 23. Effectivity - This Act shall take fifteen (15) days after its complete publication 
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in the Official Gazette or in two (2) newspapers of national circulation, whichever is earlier. 
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Approved, 
8