FOURTEENTH CONGREYS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
s.B.N~. 940 
- 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to establish the Aklan Airport Authority to oversee the 
economical, efficient and dective control, management and supervision of the Kalibo 
Airport in the Municipality of Kalibo and the Caticlan Airport in the Municipality of 
Malay, both in Aklan. 
The world famous resort Boracay of the Province of Aklan is one of the top 
tourist destinations of the Philippines. Business activities also flourished in the area to 
cater to foreign and local visitors. 
Volumes of passenger air traffic plying the Kalibo-Manila-Kalibo, Manila- 
Caticlan-Manila, and Kalibo-Cebu-Kalibo routes have steadily grown due to both 
domestic and foreign tourist arrivals. Thus, there is a need to improve, expand, and 
upgrade the facilities in the two airports including night landing and all weather airport 
equipment and system, to cope up with the demands of tourism and maximize the 
business and trade brought about by the same. 
Through the passage of this bill, such need will be addressed. 
In view of the foregoing, immediate passage of the bill is earnestly sought. 
2%- 
.- - 
/----- 
LOREN LEGARDA 
.~. 
. 
Senator 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
j .  
S.B. No. 940 ' 
Introduced by Senator Loren Legarda 
AN ACT 
CREATING THE AKLAN AIRPORT AUTHORITY AND FOR OTHER PURPOSES 
Be it enacted by the Scizate and House ofliepresentatives of the 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 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. 
The Authority may have such branches, agencies or subsidiaries as it may deem 
proper and necessary. 
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 Caticlan Airport in the 
Municipality of Malay, hereinafter collectively referred to as the airports, and such 
either airports as nay be esiablished 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 regions centers of 
international communication in the country; and 
(b) To upgrade the services the facilities of the airports and formulate international 
acceptable standards of airports accommodation and service. 
Sec. 4. Functions, Powers and Duties - The Authority shall have the following, 
(a) To formulate comprehensive and integrated development policy and programs 
of the airport and to implement, review and update such policy and program 
periodically; 
(b) To Control supervise, construct, maintain, operate and provide such facilities 
or services as shall be necessary for the efficient functioning of the airports; 
(c) To promulgate rules and regulations governing the planning, development 
maintenance, operation and improvement of the airports, to control and 
powers and duties: 


supervise the construction of any structure or the rendition of any service 
within the airports; 
(d) To exercise all the power of the Corporation Code of the Philippines, insofar as 
those powers are not consistent with the provisions of this Act; 
(e) 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; 
(f) 
To exercise the power of eminent domain in the pursuit of its purposes and 
objectives; 
(9) To levy and collect dues, charges, fees or assessments of the use of the airport 
premises works, appliances, facilities or concession, or for ar.y service provided 
by the Authority. 
(h) To retain and appropriate dues, and charge collected by the Authority relative 
to the use of airport premises for such measures as may be necessary to make 
the authority more effective and efficient in the discharge of the assigned tasks; 
To invest its idle funds, as it may deem proper in government securities and 
other evidence of indebtedness: and 
To provide services, whether on its own otherwise, within the airports and the 
approaches thereof as may be necessary or in connection with the maintenance 
and operation of the airports and their facilities. 
(i) 
0) 
Sec. 5. Police 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 objective: Provided that the Authority may 
request the assistance of the law enforcement agencies, including request for 
deputization as may be required. Such police authority shall be exercise in connection 
with the following among others: 
Maintenance of security to passengers, cargoes, aircraft, airport, equipment, 
structures, facilities, personnel, funds and documents; 
Regulating the entry to, exit from and movement within the airports; 
Maintenance of peace and order within the premises of Authority; 
Regulation and supervision of private security agencies operating in the 
airports; 
Enforcement of the rules and regulations promulgated by the Authority 
pursuant to law ; law and 
In case of emergencies or imminent danger involving danger involving 
national security within the airport premises, the Philippine Air Force 
Security Command shall take charge. 
(a) 
(b) 
(c) 
(d) 
(e) 
(f) 
Sec. 6. Boards of Directors - The corporate powers of the Authority shall be 
exercised by the vested in a board of eleven (ll)members, which shall be composed of a 
chairman a vice chairman and nine (9) members. The Secretary of Transportation and 
Communication and the General Manager of the Authority shall be the ex-officio 
chairman and vice chairman of the boards, 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 allowance shall be in accordance with existing rules and regulation. 
Sec. 7. Functions, Powers, and Duties of the Board - in addition to the powers 
vested in the Board under the other sections of this Act, the board shalI 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 the 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 the salary ranges, benefits and other terms and condition of service 
for all officers and employees of the authority upon recommendation of the 
General Manager, which shall be subjected to existing laws, rules and 
regulation; 
(e) To fix the rates of dues, charges, fees or assessments for the use of the airport 
premises, works, appliances, facilities, concessions, services and other fees and 
charges related to the activities of the airport, upon recommendation of the 
general manager, and 
General, to exercise all functions and powers necessary or incidental to attain 
the purpose and objectives of this Act. 
(f! 
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 
Function, power 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 izsearches, 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 of 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; 
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; 
To perform such other duties as the Board may delegate or assign and such acts 
as may necessary and proper to implement this Act. 
(f) 
(9) 
Sec. 9. Capital - The Authority shall have an authorized capital stock equal to 
consisting of 
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 daie of the effectivity of this Act. 
(a) 
(b) The value of such real estate owned and/or administered by the airports; 


(c) 
Government contribution in such amount as maybe deemed an aFpropriate 
initial amount, as approved by the president of the Philippines which shall be more or 
less equivalent to six (60 months working capital requirement of the requirement of the 
Authority shall be provided for the General Appropriations Act. 
Sec. 10. Distribution of income - should the Authority operate in a profit, the 
net income shall be distributed as follows: 
(a) 
(b) 
(c) Five Percent (5%) shall be remitted to the Municipal Government of Kalibo 
(d) 
Thirty Percent (30%), shall be remitted to the National Government 
Ten Percent (10%) shall be remitted to the Provincial Government 
Fifty Five Percent (55%) shall be retained by the Aklan Airport Auhority for 
Capital and other Improvement; 
Sec. 11. Auditor - Te 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 perfoimance of his duties the number and salaries of the auditor 
and said personnel shall be determined by the chairman if the commission on audit in 
accordance with the revised compensation and position classification system and other 
applicable laws, rules and regulation. 
The Auditor shall as soon as possible but not later than three(3) months after the 
accounts have been submitted for audit, send 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 
President of 
the President though the Department of 
Transportation and 
Communication 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 the Civil Service Laws - the Authoiity 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 the pledges, mortgages and other voludary liens 
or encumbrances or any of its assets or properties upon recommendation of the 
Secretary of the 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 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. 
Provide that this provision shall not be constructed as a prohibition or restriction on the 
power of the authority to create pledges, mortgages and 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 Exemption - The Authority shaft 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 
subsidiary which may be organized by the authority shall be for 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, buildings 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 Authxity. 
Sec. 17. Projects in Progress - all ongoing projects relating to the construction of 
airport facilities shall be' continues by 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 liabilities and debts. - upon transfer to the acceptance by the 
Authority by physical facilities, intangible assets and completed projects referred to in 
the proceeding sections, all debts. Liabilities and obligation 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 Kalibo Airport as a Division in 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 office 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 ilir officials 
and employees shall be terminated, and provided by 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 - AI1 Iaws, 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 full force effect 
Sec. 23. Effectivity Clause - this act shall take effect within fifteen(l5) days after 
its publication in two (2) national newspaper of general circulation. 
Approved,