FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
7 
IIil -7 
First Regular Session 
1 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The world famous resort Boracay of the Province of Aklan is one of the top 
tourist destinations of the Philippines. Business activities also flourish in the area 
to cater to foreign and local visitors. 
Records show that volume of passenger air traffic flying the Kalibo-Manila- 
Kalibo, Manila-Caticlan-Manila and Kalibo-Cebu-Kalibo routes have steadily 
grown. There are now also a number of airlines operating along these routes. 
Hence, the need to improve, expand and upgrade the facilities in the two airports 
including night landing and all weather airport equipment and system. 
This bill seeks to achieve this by establishing the “Aklan Airport Authority” 
which shall have the power to administer and operate the Kalibo and Catiklan 
airports in the Province of Aklan. 
The approval of this bill is earnestly sought. 
P 
NGGO EJERCITO ESTRAD 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
) 
7 Jill--' 
OF THE PHILIPPINES 
First Regular Session 
1 
INTRODUCED BY SEN. JlNGGOY EJERCITO ESTRADA 
AN ACT 
CREATING THE AKLAN AIRPORT AUTHORITY, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of fhe Philippines in 
Congress assembled: 
SECTION 1. Title. This Act shall be known and cited as the "Charter of 
the Aklan Airport Authority". 
SEC 2. Creation of the Aklan Airport Authority. There is hereby 
established a body corporate to be known as the Aklan Airport Authority which 
shall be attached to the Department of Transportation and Communications. The 
principal office of the Authority shall be located at Kalibo, Province of Aklan. 
deem proper and necessary. 
The Authority may have such branches, agencies or subsidiaries as it may 
SEC 3. Primary Purpose and Objectives. The Authority shall principally 
undertake the economical, efficient and effective control, management and 
supervision of the Kalibo Airport in the Municipality of Kalibo and the Caticlan 
Airport in the Municipality of Malay, herein after collectively referred to as the 
airports, such as either airports as may be established in the Province of Aklan. 
In addition, it shall have the following objectives: 
(a) 
To encourage, promote and develop international and air traffic 
in the central and western Visayas regions as a means of 
making the regions centers of international trade and tourism, 
and accelerating the 
development 
of 
the 
means of 
transportation and communication in the country; and 
To upgrade the services and facilities of the airports and to 
formulate internationally acceptable standards of airports 
accommodation and service. 
SEC 4. Functions, Powers and Duties. The Authority shall have the 
following functions, powers and duties: 


(a) 
To formulate a comprehensive and integrated development 
policy and programs of the airport and to implement, review and 
update such policy and program periodically; 
To control supervise, construct, maintain, operate and provide 
such facilities or services as shall be necessary for the efficient 
functioning of the airports; 
To promulgate rules and regulations governing the planning, 
development maintenance, operation and improvement of the 
airports, and to control and supervise the construction of any 
structure of the rendition of any service within the airports; 
To exercise all the power of a corporation under the Corporation 
Code of the Philippines, insofar as those powers are not 
inconsistent with the provisions of this Act; 
To acquire, purchase, own administer, lease, mortgage, sell or 
otherwise dispose of any land, building, airport facility, or 
property of whatever kind and nature, whether movable or 
immovable, or any interest therein: Provided That, any asset 
located in the Kalibo Airport important to national security shall 
not be subject to alienation or mortgage by the Authority nor to 
transfer to any entity other than the National government; 
To exercise the power of eminent domain in the pursuit of its 
purposes and objectives; 
To levy and collect dues, charges, fees or assessment of the 
use of airport premises, works, appliances, facilities or 
concessions, or for any service provided by the Authority; 
To retain and appropriate dues, and charges collected by the 
Authority relative to the use of airport premises for such 
measures as may be necessary to make the Authority more 
effective in the discharge of its assigned tasks; 
(b) 
(c) 
( 4  
(e) 
(9 
(9) 
(h) 
To invest its idle funds, as it may deem proper, in government 
securities and other evidences of indebtedness; and 
To provide services, whether on its own or otherwise, within the 
airports and the approaches thereof as may be necessary or in 
connection with maintenance and operation of the airports and 
their facilities. 
SEC 5. Po/icyAufhorify. The Authority shall have the power to exercise 
such police authority as may be necessary 


SEC 5. Policy Authority - The Authority shall have the power to exercise 
such police authority as may be necessary within its premises or areas of 
operation to carry out its functions and attain its purposes and objectives: 
Provided, That the Authority may request the assistance of law enforcement 
agencies, including request for deputization as may be required. Such police 
authority shall be exercised in connection with the following, among others: 
(4 
Maintenance of security to passengers, cargoes, aircraft, 
airport equipment, structures, facilities, personnel, funds and 
documents; 
(b) 
Regulating the entry to, exit from and movement with the 
airports; 
( 4  
Maintenance of peace and order within the premises of 
Authority; 
Regulation and supervision of private security agencies 
operating in the airports; 
Enforcement of rules and regulations promulgated by the 
Authority pursuant to law; and 
In case of emergencies or imminent danger involving national 
security with the airport premises, the Philippine Air Force 
Security Command shall take charge. 
(d) 
(e) 
(9 
SEC 6. Boards of Directors. - The Corporate powers of the Authority 
shall be exercised by and vested in a Board of eleven (1 1) members, which shall 
be composed of a chairman, a vice-chairman and nine (9) members. The 
Secretary of Transportation and Communications and the General Manager of 
the Authority shall be the ex-officio chairman and vice-chairman of the Board, 
respectively. The Secretary of Finance, the Secretary of Tourism, the Chief of 
Staff of the Armed Forces of the Philippines, The Commissioner of Immigration 
and Deportation, and the Provincial Governor of Aklan, or their duly authorized 
representatives, shall be ex-officio members, together with four (4) members 
from the private sector who shall be residents of Aklan to be appointed by the 
Board upon recommendation of the Provincial Governor. 
The Board shall promulgate its rules relative to meetings, quorum 
requirements and compensation or allowances of the members of the: Provided, 
That said compensation or allowances shall be in accordance with existing rules 
and regulations. 
SEC 7. Functions, Power, and Duties of the Board. - In addition to the 
powers vested in the Board under the other sections of this Act, the Board shall 
have the following functions, powers and duties; 
(a) To define and approve the programs, plans, policies, procedure and 
guidelines of the Authority who shall be the Chief Executive Officer of the 
Authority; 
(b) To recommend to the President of the Philippines for appointment, a 
general manager of the Authority who shall be the Chief Executive Officer of the 
Authority; 


(c) To approve the Authority’s organizational and administrative structure, 
staffing pattern, operating and capital expenditures, and financial budgets upon 
recommendation of the General Manager; 
(d) To approve salary ranges, benefits and other terms and conditions of 
service for all officers and employees of the Authority upon recommendation of 
the General Manager, which shall be subject to existing laws, rules and 
regulation; 
(e) To fix the rates of dues, charges, fees of assessments for the use of 
airport premises, works, appliances, concessions, services and other fees and 
charges related to the activities of the airport, upon recommendation of the 
general manager; and 
(9 Generally, to exercise all the functions and powers necessary or 
incidental to attain the purpose and objectives of this Act. 
SEC 8. Functions, powers and duties of the General Manager- The 
General Manager shall be directly responsible to the Board and shall have the 
following functions, power and duties: 
a) To direct and supervise the day-to-day management, operation and 
administration of the airports; 
b) To implement and enforce decisions, orders, rules and regulations, 
issues prescribed or adopted by the Board; 
c) To undertake the researches, studies, investigations and other activities 
related to the present operations and future improvements of the airports, and to 
submit comprehensive reports and appropriate recommendation to 
the Board for proper action; 
d) To appoint, transfer, suspend, remove or otherwise any subordinate 
officers or employees of the Authority, the approval of the Board; 
e) Within the limits of the Authority delegated to him by the Board, to 
execute contracts, incur obligations, acquire and dispose of assets, and deliver 
documents, on behalf of the Authority; 
9 To grant permits or concessions to do business with the airports in 
accordance with such rules and regulations to be promulgated by the Authority 
for the purpose; and 
g) To perform such other duties as the Board may delegate or assign and 
such acts as may necessary and proper to implement this Act. 
SEC 9. Capital. - The Authority shall have an authorized capital stock 
equal to and consisting of: 
a) The value of fixed assets (including airport facilities, runways and 
equipment) and such other properties, movable, currently administered by or 
belonging to the airports as valued on the date of the effectivity of this Act; 


b) The value of such real estate owned andlor administered by the 
airports; 
c) Government contribution in such amount as may be deemed an 
appropriate initial amount, as approved by the President of the Philippines, which 
shall be more or less equivalent to six (6) months working capital requirement of 
the Authority. 
be provided for in General Appropriations Act. 
Thereafter the government contribution to the capital of the Authority shall 
SEC I O .  Distribution of income. - Should the Authority operate in a 
a) Thirty Percent (30%), shall be remitted to the National Government; 
b) Ten Percent (1 O%), shall be remitted to the Provincial Government; 
c) Five Percent (5%), shall be remitted to the Municipal Government of 
profit, the net income shall be distributed as follows: 
Kalibo as her share; 
d) Fifty Five Percent (55%), shall be retained by the Aklan Airport 
Authority for Capital and other improvement. 
SEC 11. Auditor- The Commission on Audit may appoint a representative 
who shall be the auditor of the Authority together with the necessary personnel to 
assist said representative in the performance of his duties the number and 
salaries of the auditor and said personnel shall be determined by the chairman of 
the Commission on Audit in accordance with the revised compensation and 
position classification system. 
The Auditor shall as soon as possible but not later than three (3) months 
after the accounts have been submitted for audit, send and annual report to the 
Board. The Auditor may also submit such periodic and special reports as the 
Board deem necessary. 
SEC 12, Annual Report - The Board shall submit to the President of the 
Philippines through the Department of Transportation and Communications and 
both Houses of Congress of the Philippines, together with the audit report of the 
relevant accounts, an annual report generally dealing with the activities and 
operations of the Authority. 
SEC 13. Applicability of Civil Service Laws. - The Authority and its 
officials and employees shall be subjected to the Civil Service Laws and its rules 
and regulations. 
SEC 14. Borrowing Power - The Authority may, in accordance with 
existing laws, rules and regulations on local and foreign borrowing, raise, either 
from local or international sources, by .way of loans, credits or securities, and 
other borrowing instrument with the power to create pledges, mortgages and 
other voluntary liens or encumbrances or any of its assets or properties upon 


recommendation of the Secretary of Transportation and Communications and 
subject to the prior approval of the President of the Philippines. 
All loans contracted by the Authority under this section together with all 
interests and other sums payable in respect thereof shall constitute a charge 
upon all the revenues and assets of the Authority and shall rank equally with one 
another, but shall have priority over any other claim on charge on the revenue 
and assets of the Authority. Provided, That this provision shall not be constructed 
as a prohibition or restriction on the power of the Authority to create pledges, 
mortgages and other voluntary liens or encumbrances on any assets or property 
of the Authority. 
The payment of the loans or other indebtedness of the Authority may be 
Guaranteed by the National Government subject to the approval of the President 
of the Philippines. 
SEC 15. Tax Exemptions. - The Authority shall be exempt from the 
payment of corporate income taxes. The Authority shall likewise be exempt from 
realty taxes imposed by the National Government or any of its political 
subdivisions, agencies and instrumentalities; Provided, That no tax exemption 
herein granted shall extend to any subsidiary which may be organized by the 
Authority. 
The exemptions enjoyed by the Authority shall be for a period of five (5) 
years from the effectivity of this Act. 
SEC 16. Transfer of Existing Facilities and Intangible Assets. - All 
existing public airport facilities, runways, lands, building and other properties 
movable and immovable belonging to or presently administered by the airports, 
and all assets, powers, rights, interest or privileges relating to airport works or air 
operation, including all equipment which are necessary for operation of the air 
navigation, air traffic control and crash fire, and rescue facilities are hereby 
transferred to the Authority. 
SEC 17. Projects in Progress. - All ongoing projects relating to the 
construction of airport facilities shall be continued by the agency or agencies 
involved until their completion. Thereafter, such projects shall be transferred to 
the Authority in accordance with agreement among agencies concerned. Any 
disagreement relating to such transfer shall be submitted to the President of the 
Philippines for final decision. 
SEC 18. Transfer of Liabilities and Debts. - Upon transfer to and 
acceptance by the Authority of the physical facilities, intangible assets and 
completed projects referred to in the preceding sections, all debts, liabilities and 
obligations of government agencies or entities concerned in respect of such 
physical facilities, tangible assets and completed projects within the airports shall 
likewise be assumed by the Authority. 
SEC 19. funding. - The amount necessary to initially pay for the capital 
stock of the Authority shall be included in the General Appropriations Act of the 
year following its approval. Thereafter, subsequent government contribution to 
the capital of the Authority shall be included in the General Appropriations Act. 


SEC 20. Abolition of fhe Kalibo Airport as a Division in fhe Air 
Transportation Office. - The Kalibo Airport including the Caticlan Airport as a 
division under the Air Transportation Office is hereby abolished. The Airport 
General Manager of the Kalibo Airport shall continue in ofice and shall perform all 
powers and functions of the Authority until such time as the General Manager is 
appointed for the smooth transfer of responsibility from the abolished entity to the 
Authority, Provided, That no officials and employees shall be terminated, and 
provided that existing personnel shall have the option either to be absorbed by 
the Authority or remain with the Air Transportation Office. 
SEC 21. Repealing Clause. - All laws, executive order, letters of 
instructions, rules and regulations or provisions thereof which are inconsistent 
with this Act are hereby repealed, amended or modified accordingly. 
SEC 22. Separability Clause. - If any portion hereof shall be held invalid 
or unconstitutional, such invalidity or unconstitutionality shall not effect the other 
provisions which shall remain in full force and effect. 
SEC 23. Effectivity Clause. - This act shall take effect within fifteen (I 
5) 
days after its publication in two (2).national newspaper of general circulation. 
Approved,