Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT AMENDING THE CIVIL AVIATION AUTHORITY ACT OF 2008 AND 
SEPARATING THE REGULATORY AND COMMERCIAL FUNCTIONS OF THE 
CIVIL AVIATION AUTHORITY OF THE PHILIPPINES 
EXPLANATORY NOTE 
The separation of regulatory and commercial functions of the Civil Aviation Authority of 
the Philippines (CAAP) is necessary to ensure the efficient and effective delivery of 
services to the public. The current structure of CAAP, which combines both regulatory 
and commercial functions, has led to conflicts of interest and inefficiencies in its 
operations. 
Aerodrome development and management, including the construction, operation and 
maintenance of new airports, and the operation of training schools, are commercial 
functions that are not inherently essential, necessary, or incidental to aviation 
regulation, and should be better managed by a separate entity such as the Philippine 
Aerospace Development Corporation (PADC) or the private sector. 
Transferring these functions to PADC or the private sector will allow CAAP to focus on 
its core regulatory responsibilities, and ensure that these commercial functions are 
managed with the same level of efficiency and effectiveness that is expected from the 
commercial sector. This will also ensure that the investigation of any incidents will be 
done by an objective and independent body rather than the same agency investigating 
itself. 
Additionally, the privatization, Public-Private Partnership, joint venture, Build-Operate-
Transfer scheme, divestment, or such other similar means of the Authority’s aerodrome 
development and management functions, including the construction, operation and 
maintenance of new airports, will ensure that government resources are used more 
efficiently and effectively, and will help to reduce the burden on the government budget. 
This will also provide an opportunity for the private sector to invest and innovate in 
aerodrome development and management, which is critical to the growth of the 
country’s air transport infrastructure. 
January 16, 2023
1:33 pm
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REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
______________________________________________________________________ 
Introduced by HON. GUS S. TAMBUNTING 
______________________________________________________________________ 
AN ACT AMENDING THE CIVIL AVIATION AUTHORITY ACT OF 2008 AND 
SEPARATING THE REGULATORY AND COMMERCIAL FUNCTIONS OF THE CIVIL 
AVIATION AUTHORITY OF THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 21 of Republic Act No. 9497, otherwise known as the Civil Aviation 
Authority Act of 2008, is hereby amended to read as follows: 
“SECTION 21. Policies. — In the exercise and performance of its powers and 
duties under this Act, the Authority shall consider the following, among other 
things, as being in the public interest and in accordance with the public 
convenience and necessity: 
(a) The regulation of air transportation in such manner as to support sound
economic condition in such transportation and to improve the relations between
air carriers; and
(b) Ensuring the safety, quality, and reliability of air transport services for the
riding public.”
SEC. 2. Section 33 of the same Act is hereby amended to read as follows: 
“SECTION 33. Organizational Structure of the Authority. — Within fifteen (15) 
days from the appointment of and acceptance by all members of the Board and 
the Director General of their respective appointments, the Board, in consultation 
with the Director General, shall meet to draw up the Authority's organizational 
structure. The Board shall agree on the Authority's final organizational structure 
not later than six (6) months from the date of the effectivity of this Act. 
In addition to the offices created under Sections 36 and 40 of this Act, the Board 
shall establish the following permanent offices: 
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(a) Air Traffic Service; 
 
(b) Air Navigation Service; and 
 
(c) Administrative and Finance Service. 
 
The Aerodrome Development and Management Service, as an office within the 
Authority, is hereby abolished effective immediately. The functions, powers, and 
duties related to aerodrome development and management shall temporarily be 
transferred to the Philippine Aerospace Development Corporation, under the 
supervision of the Department of Transportation. Within five (5) years from the 
abolition of the said office, the Governance Commission for Government-Owned 
or Controlled Corporations, the Philippine Aerospace Development Corporation, 
and the Department of Transportation shall plan, obtain the approval for, and 
implement the privatization, Public-Private Partnership, joint venture, Build-
Operate-Transfer scheme, divestment, or such other similar means of the 
Authority's aerodrome development and management functions. 
 
The Board may agree for the viability for the creation of additional offices and 
the finalization of the organizational structure not later than six (6) months from 
the date of the effectivity of this Act. 
 
Notwithstanding the qualification standards as may be prescribed by the Board 
and the Civil Service Commission, the selection and appointment of the heads 
of the foregoing offices shall be limited from the rank and file employees of the 
concerned services.” 
 
SEC. 3. Section 34 of the same Act is hereby amended to read as follows: 
 
"SECTION 34. Training Schools. — (a) Authority to Operate — The Philippine 
Aerospace Development Corporation shall conduct a school or schools for the 
purpose of training employees of the Authority in those subjects necessary for 
the proper performance of all authorized functions of the Authority. The PADC 
may also authorize attendance of courses given in such schools by other 
governmental personnel and personnel of foreign governments, or personnel of 
the aeronautical industry. 
 
(b) Offset of Training Costs — The Philippine Aerospace Development 
Corporation shall be responsible for determining the cost of training and any 
required payment from appropriate parties to offset the costs of training provided 
by such school or schools." 
 
SEC. 4. The following provision of Section 35 of the same Act is hereby repealed: 
 
“(l) To plan, design, acquire, establish, construct, operate, improve, maintain, and repair 
necessary aerodromes and other air navigation facilities;” 
 
Item (m) of Section 35 of the same Act shall now be relabeled as item (l), et seq. 
 
SEC. 5. Section 78 of the same Act is hereby amended to read as follows: 
 


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"SECTION 78. Development of New Airports. — The Philippine Aerospace 
Development Corporation shall be responsible for the planning, development, 
construction, operation, maintenance, or the expansion of airports. In planning 
and developing new airports, the PADC shall consider: 
 
(a) The suitability of a proposed site in terms of terrain and proximity to 
population center(s); 
 
(b) The projected size of the market to be served by a proposed airport; 
 
(c) The ability of a proposed airport to generate sufficient revenue to cover costs 
of operation and maintenance; 
 
(d) The availability of funding from both local and foreign sources for the 
construction of a new airport or expansion of an existing one; 
 
(e) The proximity of other airports to a proposed new airport and the capability 
of such other airport to handle traffic projected to be handled by the new 
proposed airport; 
 
(f) The government's public service obligations, more particularly the 
government's duty to ensure the availability of air transport infrastructure for 
remote areas far from major population centers and that are not otherwise easily 
accessible by transportation via land or sea. In such cases, the Philippine 
Aerospace Development Corporation shall take reasonable steps to ensure that 
funding will be available for the operation and maintenance of such airports; 
 
(g) ICAO best practices and recommendations concerning the development of 
airports; and 
 
(h) Within five (5) years from the abolition of the Civil Aviation Authority of the 
Philippines’ aerodrome development and management office, the Governance 
Commission for Government-Owned or Controlled Corporations, the Philippine 
Aerospace Development Corporation, and the Department of Transportation 
shall plan, obtain the approval for, and implement the privatization, Public-
Private Partnership, joint venture, Build-Operate-Transfer scheme, divestment, 
or such other similar means of the Authority’s aerodrome development and 
management functions; and 
 
(i) Such other considerations as the Philippine Aerospace Development 
Corporation, in the exercise of its reasonable discretion, may consider relevant 
or important." 
 
SEC. 6. Separability Clause. — If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall continue to be in full force and 
effect. 
 
SEC. 7. Repealing Clause. — All laws, decrees, executive orders, rules and regulations and 
other issuances or part thereof, which are inconsistent with this Act, are hereby repealed, 
amended, or modified accordingly. 


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SEC. 8. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in any newspaper of general circulation. 
 
Approved,