Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Eighteenth Congress 
Second Regular Session 
HOUSE BILL NO.______ 
Introduced by Representative Sharon S. Garin 
EXPLANATORY NOTE 
The air transport sector is a major contributor to the Philippine economy. Air transport is a 
major facilitator of the flow of goods, investments and people. Undoubtedly, the jobs and spending 
generated by air carriers and their supply chain, the flows of trade. tourism and investment 
resulting from users of all airlines serving the country, and the city pair connections that make 
these flows possible are among the stakeholders affected by the decline in demand for the air 
transport sector. due to the pandemic Records show that about 1.2M jobs were being generated, 
$10.4 billion worth of gross value-added contribution to the gross domestic product and about 
3.4% of the GDP was supported by the air transport sector and foreign tourists arriving by air.  
Due to COVID-19 pandemic, the members of the Philippine air transport sector are facing 
an existential threat. In fact, on March 17, 2020, the Center for Asia Pacific Aviation (CAPA) 
predicted that by end of May 2020 most airlines in the world will be bankrupt due to pandemic. 
With the catastrophic impact of COVID-19 on aviation industry, airlines in different 
jurisdiction are already talking, issuing and releasing relief packages like the Australian Federal 
Government that provided Qantas and Jetstar AUS$715M with refund and waiver of aviation fuel 
excise, air service charges and domestic and regional aviation security charges; Air New Zealand 
received a loan facility of NX$900M; Air India, Indigo and Spice Jet were provided by the Indian 
government the amount of USD1.6B and temporary suspension of most taxes levied on the sector 
including deferment of aviation fuel tax; Canadian carriers were promised USD 82B while US 
carriers will receive not less than USD5 billion each. 
In this difficult times, any economic recovery packages can never be considered as 
economic stimulus without reliefs granted to the air transport sector that play a vital role in the 
Philippine economy. The support programs incorporated in Bayanihan 1 and 2 for critically 
impacted industries, such as loan guarantees for the air transport sector, will expire by 30 June 
2021. 
May 12, 2021
1:46 pm
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Despite the debilitating effects of the lockdown to its operations, airline companies 
continue to support the nation in its recovery by continuing to fly our displaced OFWs and assist 
in the delivery of medical equipment to key cities, including logistics support fo the vaccine roll-
out.  It is time for the true Bayanihan to recover and arise as one by extending assistance that our 
government can to support and help rebuild the air transport sector. 
In view of the foregoing, the passage of this bill is earnestly sought for. 
SHARON S. GARIN 
Party List, AAMBIS-OWA 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO.______ 
Introduced by Representative Sharon S. Garin 
AN ACT 
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PROVIDING FOR RELIEF PACKAGE TO THE AIR TRANSPORT SECTOR OF THE 
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PHILIPPINES 
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Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION. 1. Short Title. - This Act shall be known as “Air Carriers Relief Act”. 
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SEC. 2. Declaration of Policy. –  It is the policy of the State to provide for support to all 
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major sectors having major impact in the economy for its recovery and resiliency in times of 
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national health emergencies. It shall recognize the vital role of the transportation sector in 
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facilitating the flow of goods, people and investment. Towards this end, it shall be a priority of the 
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government to provide reliefs for any threat to the existence of the air transport sector by extending 
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loan payments, interest free loans, loan guarantees and regulatory reliefs during this challenging 
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time of pandemic.  
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SEC. 3. Coverage.  — This Act shall provide reliefs for domestic air carriers of the 
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Philippines. A “domestic air carrier” is a company duly organized and existing under Philippine 
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laws with a legislative franchise or a certificate of public convenience and necessity from the Civil 
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Aeronautics Board (CAB); and. an air operator certificate from the Civil Aviation Authority of 
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the Philippines (CAAP). 
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SEC. 4. Extension of Air Transport Sector’s Loan Payments. – Banks and other non-
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bank financial institution (NBFIs), under the supervision of the Securities and Exchange 
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Commission (SEC) and Bangko Sentral ng Pilipinas (BSP), shall extend the term of or agree to 
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the restructuring of existing commercial loans of air transport sector for a period of three (3) years, 
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and may be further extended for another of two (2) years with an interest rate as may be set by the 
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BSP. 
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The banks and other NBFIs that agree to loan term extension or restructuring pursuant to 
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this Section shall be entitled to regulatory reliefs of non-inclusion of said loan term extension or 
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restructuring in the bank’s or NBIF’s reporting non-performing loans, exemption from loan-loss 
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provisioning, exemption, when applicable, from the limits on real estate loans, and exemption from 
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related party transaction restrictions, as may be determined by BSP. 
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SEC. 4. Interest Free Loans. - The Development Bank of the Philippines (DBP) shall 
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introduce an interest-free loan program available to affected domestic air carriers to assist and 
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encourage them to continue operating and investing in their businesses: Provided, That the 
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interest-free loans shall be granted in accordance with the following guidelines and such other 
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conditions as may be imposed under the implementing rules that will be issued by the Department 
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of Finance (DOF) and the BSP:  
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(1) The maximum loanable amount shall be equivalent to Two Billion Pesos 
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(P2,000,000,000.00) per domestic air carrier which shall be payable within a period  to be agreed 
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upon by the domestic air carrier and DBP, which period shall not be less than five (5) or not more 
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than ten (10) years.  
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Ten Billion Pesos (Php10,000,000,000.00) shall be appropriated as Special Interest Free 
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Fund for the implementation of this Section. The Fund shall be allocated to the DBP in proportion 
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to the current loan portfolio of the said bank at the time of effectivity of this Act. The DOF and 
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the BSP shall jointly issue implementing rules and regulations and guidelines for this Section, 
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within fifteen (15) days upon the effectivity of this Act.  
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SEC. 5. Loan Guarantee by Philippine Guarantee Corporation. - To ensure that domestic 
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air carriers are able to fulfill their loan obligations, whether existing, outstanding, or new loans, to 
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banks, lending, or financing institutions, and to help strengthen their liquidity and financial 
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position towards expediting the country's economic recovery, the Philippine Guarantee 
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Corporation (PGC) shall:  
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a. Issue an expanded government guarantee program for domestic air carriers by increasing 
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the maximum loan guarantee coverage per borrower, including a guarantee program for issuance 
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of corporate bonds by domestic air carriers; 
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b. Ease its current rules and regulations;  
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c. PGC is mandated to implement a loan portfolio guarantee scheme whereby it can 
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guarantee a specified loan portfolio of partner financial institutions which cover eligible loans of 
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air carriers subject to the criteria set under the implementing rules and regulations of this Act.  
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PGC shall implement measures aimed at the digital transformation of its guarantee 
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application and enrollment process and may require assistance from other government financial 
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institutions. It shall coordinate with the DICT, BSP, and solicit assistance from the private sector 
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for the proper implementation of this Section. 
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For the implementation of this Section, the amount of Ten Billion Pesos 
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(Php10,000,000,000.00) is appropriated as PGC's Special Guarantee Fund.  
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The DOF shall issue the implementing rules and regulations for this Section, within fifteen 
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(15) days from the effectivity of this Act with the end-in-view of achieving the policy objectives 
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of this Act. 
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SEC. 6. Regulatory Reliefs for Air Carriers and Passengers.- The National Government 
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shall pay for the non-tax and non-duty fees and charges, including navigational and airport charges 
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of domestic air carriers charged by the Department of Transportation (DOTr) through the Civil 
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Aviation Authority (CAA), Civil Aeronautics Board (CAB) and Philippine Port Authority (PPA), 
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Manila International Airport Authority (MIAA), Mactan-Cebu International Airport Authority 
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(MCIAA), the Clark International Airport Corporation (CIAC) and all other non-tax and non-duty 
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fees and charges of other regulatory agencies for a period of three (3) years from the effectivity of 
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this Act.  
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SEC 7. Treatment of passenger refunds. — To bolster the tourism industry of the country, 
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domestic air carriers may opt to limit refunds of affected passengers and convert them into 
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vouchers for future travel plans of passengers.  
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The Department of Budget and Management (DBM) shall acquire the existing liability of 
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domestic air carriers to its passengers with regard to the refund of eligible unused tickets which 
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remain outstanding as of the effectivity of this Act.  The acquired refunded tickets shall then be 
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appropriated by the national government for use of government personnel for official travel giving 
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priority to the use by the personnel of the Department of Health and Department of Defense, 
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including the Armed Forces of the Philippines and Philippine National Police. 
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SEC 8. Temporary relief from imposition of excise taxes on fuel. – The Department of 
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Finance is hereby enjoined to issue a temporary relief from payment of excise taxes on purchases 
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of fuel by Philippine air carriers for a period of two (2) years from Effectivity of this Act. 
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SEC. 9. Rapid Testing.  —  In order to arrest the spread of COVID-19, airport authorities 
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are directed to facilitate rapid testing capability on arriving and departing passengers within their 
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respective jurisdictions, under the direct control and supervision of competent DOH personnel. 
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The amount of Ten billion pesos (P10,000,000,000.00) is hereby allocated for this purpose. 
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SEC. 10. Appropriations and Standby Fund. – The following amounts, or so much thereof as 
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may be necessary, are hereby appropriated and shall be used to support operations and response 
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measure to address and mitigate the impact of COVID-19 pandemic to the aviation sector: 
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Item 
Amount 
Interest-free loans from DBP 
10,000,000,000.00 
PGC Special Guarantee Fund 
10,000,000,000.00 


 
 
For regulatory fees  
10,000,000,000.00 
For rapid testing 
10,000,000,000.00 
TOTAL 
40,000,000,000.00 
 
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SEC. 11. Implementing Rules and Regulations. - The DOTr, DOF, BSP, and DOF in shall 
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promulgate the rules and regulations within thirty (30) days from effectivity of this Act to 
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implement the objectives and provisions of this Act.  
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SEC. 12. Separability Clause. — If any provision of this Act is declared invalid or 
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unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.  
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SEC. 13. Repealing Clause. — All laws, decrees, orders, rules and regulation, or other 
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issuances or parts thereof inconsistent with the provisions of this Act are hereby revoked, repealed, 
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amended or modified accordingly.  
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SEC. 14. Effectivity. — This Act shall take effect fifteen (15) days after its complete 
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publication in the Official Gazette or in at least one (1) national newspaper of general circulation.  
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Approved, 
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