SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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SENATE 
s. No.
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Introduced by Senator Ralph G. Recto
AN ACT
PROVIDING FOR A BILL OF RIGHTS FOR AIR PASSENGERS, PENALIZING 
VIOLATIONS THEREOF, AND FOR OTHER PURPOSES
Explanatory Note
Investments, trade, labor and tourism benefit from and rely on a convenient, affordable and 
efficient air transport system. Air transport and storage sector accounts for 65.6 billion pesos or 
0.5% of the total Gross Domestic Product (GDP) of the Philippines for 2014. The industry 
provides employment for about 123,000 individuals througli direct, indirect and induced 
employment while it supports another 4.3 million jobs and livelihood through catalytic activities 
like tourism and household consumption1. It also contributes an estimated P26 billion in taxes on 
eorporate and individual income, travel, supply chain consumption and others2. The vital role of 
the air transport industry in promoting inclusive economic growth provides the imperative to 
ensure that it functions effectively and efficiently for service providers and consumers alike.
The liberalization of the air transport industry through the adoption of Executive Order No. 
219 on January 1995 was a government response to problems brought about by the restricted air 
transport industry in the Philippines. It provided the mandate needed to liberalize the aviation 
industry, introduce more business players, open more routes, inerease flight frequency and 
capacity, and provide more competitive fares. Through these provisions, the government aimed 
to expand investment and trade, to improve aecess for air passengers, and to address the 
inaccessibility and inadequacy of the air transport service.
Today, the air transport industry enjoys remarkable growth as evidenced by the upsurge in 
the clientele it serves. Records from the Civil Aeronauties Board (CAB) show that domestie 
scheduled passenger traffie increased by more than thirty-three percent (33%) from 16,568,308 
in 2010 to 22,082,045 in 20153. The number of international scheduled passengers, meanwhile, 
grew by more than thirty-nine pereent (39%) to 19,864,977 in 2015 from 14,283,105 in 20104. 
On the average, some 115,000 people flew daily to various domestic and international 
destinations in 2015 compared to an average of 84,500 people in 2010. The increased utilization 
of air transport was credited to the introduction of greater competition in the major routes, lower 
airfares and more available flights5.
Oxford Economics. (2011) The Philippines Country Report: Economic Benefits from Air Transport in the 
Philippines. International Air Transport Association.
Rimando, L. (2012, February 29). lATA: Philippine aviation contributes 2.4% to GDP, employs 4.4-M. Rappler 
Philippines.
3 Civil Aviation Board. (2015). Scheduled Domestic Passenger Traffic 2006-2015. Pasay City; Civil Aeronautics 
Board.
4 Civil Aviation Board. (2015). Scheduled International Passenger Traffic 2006-2015. Pasay City: Civil Aeronautics 
Board.
Austria, Myma S. (2001, August). Competition in the Domestic Air Transport Industry: Can it be sustained 
without competition policy? Policy Notes{6). 1-8.