SIXTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third R egular Session 
)
SENATE
S. No. 3011
fftifirr itf 
5*rtTfbry
’ 15 
NOV 24 
A 9 « 4
i;v;
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 through 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 
corporate 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 brou^t about by the restricted air 
transport industry in the Philippines. It provided the mandate needed to liberalize the aviation 
m dus^. introduce more business players, open more routes, increase flight frequency and 
capacity, and provide more competitive fares. Through these provisions, the government aimed 
to expand investment and trade, to improve access 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 Aeronautics Board (CAB) show that domestic 
scheduled passenger traffic increased by almost twenty-three percent (23%) from 16,568.308 in 
2010 to 20,349,381 in 2014 . The number of international scheduled passengers, meanwhile 
^ew  by more than twenty five percent (25%) to 17.918.723 in 2014 from 14,283.105 in 20104. 
On the average, more than 120,000 people flew daily to various domestic and international 
destinations in the first semester of 2015 compared to some 51,000 people in 2006. The 
increased utilization of air transport was credited to the introduction of greater competition in the 
major routes, lower airfares and more available flights3.
1 
Eco"omic9-.(201 \\ The Philippines Country Report: Economic Benefits from Air Transport in the
2 Philippmes. International Air Transport Association. 
r
(2012, FebrUary 29)' IATA: PhiliPPine aviation contributes 2.4% to GDP, employs 4.4-M. Rappler
3 BoaldAViati0n BOard‘ (2015)' Schcdulcd Domcstic Passenger Traffic 2006-2015. Pasay City; Civil Aeronautics
4 B ^rd Viati0n BOard (2015)’SchcduIed In,emational Passenger Traffic 2006-2015. Pasay City: Civil Aeronautics
Austria, Myma S. (2001, August). Competition in the Domestic Air Transport Industry: Can it be sustained 
without competition policy? Policy Notes{6). 1 -8.