SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
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*17 
MAY-9 P6 25
S E N A T E
S.B. No. 1442
RiC!: 7:;o;
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Introduced by Senator Poe
AN AC I
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9497, OTHERWISE 
KNOWN AS CIVIL AVIATION AUTHORITY ACT OF 2008
Explanatory Note
Republic Act No. 9497, otherwise known as the Civil Aviation Act of 2008 was 
signed into law on March 4, 2008. The law abolished the Air Transportation Office (ATO) 
and instead created the Civil Aviation Authority of the Philippines (CAAP), which is 
mandated to set comprehensive, clear, and impartial rules for the aviation industry. Under 
Republic Act No. 9497, the CAAP shall be an independent regulatory body with quasi­
judicial and quasi-legislative powers with corporate attributes.
Prior to the passage of Republic Act No. 9497, the US Federal Aviation Authority 
(FAA) downgraded the Philippines to Category 2 status in 2007 after finding 88 critical 
elements. The "downgrade" meant the FAA had concerns over the ability of its counterpart 
(formerly ATO) to implement global aviation standards, which include security and safety, 
among others.
In 2010, the European Union (EU) placed Philippine air carriers on its blacklist, 
banning any airline from the Philippines from flying to destinations in Europe. These 
restrictions served as obstacles in the expansion plans of both Philippine Airlines and Cebu


Pacific. The restrictions prevent airlines from the Philippines from mounting new flights from 
the Philippines to the United States or Europe. It is likewise perceived as having a negative 
impact on tourism and the growth of the Philippines’ air transport sector in general.
As of early this year, the technical review report of the FAA cited 23 “critical 
elements” that still have to be addressed for the improvement of the country’s aviation status. 
The remaining "critical elements" include fine-tuning of the Philippine Civil Air Regulations, 
changing the CAAP’s safety and oversight structure, updating its database storing system, 
standardizing their certification of safety inspectors, and revalidating airline carriers, among 
others.
The recent efforts of CAAP have led to the resolution of many of the regulatory 
concerns raised, as indicated by the restoration of the Philippines to Category 1 status in 
April 2014 and the lifting of the ban by the EU on Philippine carriers to mount flights into 
Europe.
This proposed measure seeks to fully address the still perceived deficiencies in the 
supervision and management of the Philippine civil aviation industry and to strengthen 
CAAP as the country’s designated civil aviation authority.
CAAP was already given positive endorsement by the European Commission when it 
gave the Philippines the category upgrade. This means that international aviation bodies can 
now “rely on CAAP’s judgment regarding the safety of other airlines for in-country use” by 
international travellers.


There is a need to pass these amendments in order to sustain and not to derail CAAP’s 
efforts which once again allowed carriers to offer direct flights from the Philippines to 
Europe and to more destinations in the United States as it continues to work with 
international aviation bodies to improve and upgrade the status of Philippine aviatioiL
The significant amendments being proposed in this bill include:
• 
Increasing the term of the Director General (DG) to seven (7) years
Increasing the DG’s term of office to seven (7) years - in the CAAP law is consistent
with the intent of strengthening CAAP as a regulatory body. The Legislature in enacting the 
CAAP law is sought to insulate the agency from the constantly changing political climate in 
the Executive Department. The mandate is to cause the restructuring of the civil aviation 
system, the promotion, development and regulation of the technical, operational, safety, and 
aviation security functions,” which can hardly be realized under a DG who has no security of 
tenure and would, constantly find difficulty in instituting reforms attuned to international 
standards in civil aviation if he is interrupted by factors other than removal for cause.
• 
Exemption of CAAP from the Salary Standardization Law (SSL)
The proposed exemption from the Salary Standardization Law (SSL) is based the fact 
that the qualifications and functions performed by CAAP directors, officers, and employees 
are different from those performed by other “government employees” as distinctly and highly 
technical in nature.
International Civil Aviation Organization (ICAO) relates that there is an impending 
global shortage of aviation professionals and aviation safety professionals. Taking the US as


an example, in the next 20 years, there will be a need to add 25,000 new aircrafts to the 
current 17,000-strong commercial fleet. By 2026, there will be a need for 480,000 new 
technicians to maintain these aircrafts and over 350,000 pilots to fly them. Between 2005 and 
2015, 73% of the American air traffic controller population is eligible for retirement. The 
underlying problem, simply stated, is that the demand for aviation professionals will exceed 
supply.
The scenario is the same here in the Philippines. ICAO enumerates factors for the 
decline and possible shortage to include “wholesale retirements in the current generation of 
aviation professionals, aviation professions not attractive enough to potential candidates, 
competition with other industry sectors for skilled employees, training capacity insufficient to 
meet demand, learning methodologies not responsive to new evolving learning style, 
accessibility to affordable training, and lack of harmonization of competencies in some 
aviation disciplines.”
The proposed amendments, likewise, seek to make the aviation industry more 
attractive to professionals by granting CAAP, as lead authority, with a more flexible and less 
bureaucratic entry process for workers, officials, and aviation technicians and professionals.
• 
Enhanced fiscal autonomy
In view of the peculiar character of projects relating to regulatory and aviation safety 
oversight functions, the amendment pertaining to increased fiscal autonomy is intended to 
minimize difficulties in securing prompt concurrence of budget allocations and expenditures.


There is a dire need for these amendments. The lingering concern over the issue of the 
ability of the CAAP to implement safety standards affects the government's tourism targets 
since CAAP plays a key role in promoting tourism as one of the Philippine economy’s 
growth sectors.
In 2015, tourist arrivals reached an all-time high of 5.36 million. If the upgrade is 
sustained, then achieving the government’s target of luring at least 10 million foreign tourists 
by 2022 is almost assured. This will certainly make the country more competitive and 
contribute tremendously in achieving the administration’s targets in tourism.
The CAAP is the regulatory body responsible for air safety within Philippine borders. 
This is why it has to adhere to the requirements and standards set by international aviation 
authorities and make them feel confident that carriers under its direct supervision that fly into 
other jurisdictions pose no risk and meet an internationally accepted set of safety and 
competence standards.
Reforming air transportation is critically important to the Philippines, not so much as 
it is a determining factor to the full realization of the latter’s potential as a tourist and 
business destination, but more importantly, to provide safe and efficient travel for citizens 
and visitors in the country.
Guaranteeing the safety and reliability of air transportation in the Philippines should 
always be of paramount importance. In view of the foregoing, passage of this bill is earnestly 
sought.
E POE


SEVEM EEM  U CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
S E N A T E
S.B. No. 1442
delin':?
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‘17 
HAY-9 \P6 25
Introduced by Senator Poe
AN ACT
STRENG IIIENING H IE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9497, OTHERWISE 
KNOWN AS CIVIL AVIATION AUTHORITY ACT OF 2008
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Section 2 of Republic Act No. 9497, otherwise known as the Civil 
Aviation Authority Act of 2008, is hereby amended to read as follows:
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“SEC. 2. Declaration of Policy. - It is hereby declared the policy of 
the State to provide safe and efficient air transport and regulatory 
services in the Philippines by providing for the creation of a civil 
aviation authority with jurisdiction over the restructuring of the 
civil aviation system, the promotion, development and regulation 
of the technical, operational, safety, and aviation security functions 
under the civil aviation authority IN FURTHERANCE OF THE 
OBLIGATIONS 
OF 
THE 
PHILIPPINES 
TO 
THE 
INTERNATIONAL COMMUNITY 
AS CONTR\CTING 
STATE 
TO 
THE 
CHICAGO 
CONVENTION. 
THE 
AUTHORITY 
SHALL 
COORDINATE 
WITH 
OTHER 
GOVERNMENT AGENCIES IN ADVANCING AVIATION 
SECURI I'Y IN THE PHILIPPLNES.
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TOWARDS THIS END, THE GOVERNMENT SHALL 
EXTEND ALL MEANS AND MECHANISMS NECESSARY 
FOR THE AUTHORITY TO FULFILL ITS VITAL TASK


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OF PROMOTING AND ENSURING SAFE AND EFFICIENT 
AIR TRANSPORT.
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IN VIEW OF TUE CRUCIAL ROLE, AND THE NATURE, 
POWERS AND FUNCTIONS OF THE AUTHORITY, AS A 
GOVERNMENT 
INSTRUMENTALITY 
WITH
CORPORATE POWERS, IT SHALL ENJOY FISCAL AND 
ADMINISTRATIVE AUTONOMY.”
SECTION 2. Section 4 of the same Act is hereby amended to read as follows;
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“SEC. 4. Creation of the Authority. - There is hereby created an 
independent regulatory body with quasi-judicial and quasi­
legislative powers and possessing corporate attributes to be known 
as the Civil Aviation Authority of the Philippines (CAAP), 
hereinafter referred to as the "Authority" attached to the 
Department of Transportation (DOTr) SOLELY for the purpose of 
policy coordination. 
For this 
purpose, 
the 
existing Air 
Transportation Office created under the provisions of Republic Act 
No. 776, as amended, is hereby abolished.
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THE AUTHORITY SHALL BE EXEMPTED FROM THE 
PROVISIONS 
OF 
REPUBLIC 
ACT 
NO. 
10149, 
OTHERWISE KNOWN AS THE GOCC GOVERNANCE 
ACT OF 2011 AND FROM THE JURISDICTION OF THE 
GOVERNANCE 
COMMISSION 
FOR 
GOVERNMENT- 
OWNED 
OR 
CONTROLLED 
CORPORATION; 
PROVIDED, HOWEVER, THAT THE AUTHORITY SHALL 
BE REQUIRED TO COMPLY WITH THE DISCLOSURE 
REQUIREMENTS IN SECTION 25 CHAPTER V OF 
REPUBLIC ACT NO. 10149 AND MAY BE SUBJECT TO 
THE SPECIAL AUDIT UPON THE DIRECTIVE OF THE 
COMMISSION ON AUDIT; PROVIDED, FURTHER, THAT 
NO PERFORMANCE INCENTIVE, BONUS, AND ANY


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KliSD OF ADDITIONAL BENEFIT NOT PRESCRIBED 
UNDER THE LAW SHALL BE GRANTED UNLESS THE 
AUl HORH Y HAS FULLY PAID ALL TAXES FOR WHICH 
IT IS LIABLE.
XXX
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(a] [ Establishment of Authority Headed by a ] APPOINTMENT 
AND TERM OF OFFICE Director General - The Authority shall 
be headed by a Director General of Civil 
Aviation, referred to
in this Act as the "Director General," who [shall be apfX)inted by 
the President of the Philippines and ] shall be responsible for all 
NON-ECONOMIC ASPECTS OF civil aviation in the 
Philippines 
and 
the 
administration 
of 
this 
Act. 
NOTWITHSTANDING THE PROVISIONS OF REPUBLIC 
ACT NO. 10149, [T]the 
Director General shall be appointed 
BY THE PRESIDENT OF THE PHILIPPINES based on the 
qualifications herein provided and shall have a [ tenure ] TERM of 
office for a period of [ four (4) ] SEVEN (7) years. His 
appointment may be extended for another non-extendible term of [ 
four (4) ] SEVEN (7) years and shall only be removed for cause in 
accordance with the rules and regulations prescribed by the Civil 
Service Commission. IN CASE THE DIRECTOR GENERAL 
FAILS TO COMPLETE HIS TERM, HIS SUCCESSOR 
SHALL ONLY SERVE FOR THE UNEXPIRED PORTION 
OF THE TERM OF HIS PREDECESSOIL NO DIRECTOR 
GENERAL CAN SERVE IN OFFICE FOR MORE THAN 
[eight (8)] FOURTEEN (14) YEARS.
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THE 
PRESIDENT 
OF 
THE 
PHILIPPINES 
SHALL 
APPOINT 
THE 
DIRECTOR 
GENERAL 
FROM 
A 
SHORTLIST OF TUIUlE NOMINEES PREPARED BY THE 
BOARD OF DIRECTORS CONSTITUTED AS A SEARCH 
COMMHTEE 
COMPOSED 
OF 
FIVE 
MEMBERS


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TUEREOF WUO SHALL RECEIVE AND EVALUATE 
NOMINATIONS. NO INCUMBENT DIRECTOR GENERAL 
SHALL BE A MEMBER OF THE SEARCH COMMITTEE.
XXX
SECTION 3. Section 5 of the same Act is hereby amended to read as follows:
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“SEC. 5. Composition of the Board Members. — The corporate 
powers of the Authority shall be vested in a board, which is 
composed of [ seven (7) ] NINE (9) members:
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(a) The Secretary of the Department of Transportation and 
Communications shall act as chairman ex officio;
(b) The 
Director General 
of Civil 
Aviation 
(DGCA) 
shall 
automatically be the vice chairman of the Board;
(c) The Secretary of Finance;
(d) The Secretary of Foreign Affairs;
(e) The Secretary of Justice;
(f) The Secretary of the Interior and Local Government; [ and ]
(g) The Secretary of the Department of Labor and Employment;
(H) 
THE SECRETARY OF THE DEPARTMENT OF TOURISM 
(PER SECTION 96 OF REPUBLIC ACT NO. 9593); AND
(I) THE 
SECRETARY 
OF 
THE 
DEPARTMENT 
OF 
NATIONAL DEFENSE.
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The Directors listed under subsections (a) to [(g)] (I) shall be ex 
officio members of the Board of Directors: PROVIDED THAT, 
IN THE ABSENCE OF THE CHAIRMAN, HE SHALL 
DESIGNATE AN UNDERSECRETARY OF THE DOTC TO 
ACT IN HIS BEHALF AS CHAIRMAN; PROVIDED 
FURTHER, THAT THE DIRECTOR GENERAL, IN HIS 
ABSENCE, SHALL DESIGNATE HIS REPRESENTATIVE 
FROM THE AUTHORITY TO ACT AS VICE CHAIRMAN:


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Provided, That, in the absence of the Director appointed in 
subsections (c) to [(g)] (I), the Director concerned shall designate 
with full power and authority, in writing, an officer in his 
department or office to act on his OR HER behalf as a Director.”
SECTION 4. Section 9 of the same Act is hereby amended to read as follows:
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“SEC. 9. Qualifications of Director General. - No person shall be 
appointed [ or designated ] as the Director General unless he is a 
Filipino citizen, at least thirty-five (35) years of age, of good moral 
character, unquestionable integrity, recognized competence and a 
degree holder with at least five (5) years supervisory or 
management experience in the field of aviation.”
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SECTION 5. Section 12 of the same Act is hereby amended to read as follows:
“SEC. 12. Personnel. -  [ Qualified existing personnel of the Air 
Transportation Office (ATO) shall be given preference in the 
filling up of plantilla positions created in the Authority, subject to 
existing civil service rules and regulations. ]
THE 
DIRECTOR 
GENERAL 
SHALL 
EXERCISE 
APPOIMTiNG AND DISCIPLINING POWERS OVER ALL 
PERSONNEL OF THE AUTHORITY.
CONSIDERING THE HIGHLY TECHNICAL CHARACTER 
AND 
NATURE 
OF 
THE 
FUNCTIONS 
OF 
THE 
AUTHORITY, ITS PERSONNEL SHALL BE EXEMPTED 
FROM THE REQUIREMENTS PRESCRIBED UNDER THE 
RULES 
GOVERNING 
THE 
CAREER 
EXECUTIVE 
SERVICE. ALL LAWS, RULES, AND REGULATIONS, 
GOVERNING 
POSITIONS, 
CLASSIFICATIONS 
AND 
QUALIFICATION STANDARDS INCLUDING, BUT NOT 
LIMITED TO, 
PRESIDENTIAL 
DECREEE 
NO. 985,


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REPUBLIC ACT NO. 6758, AS AMENDED, JOINT 
RESOLUTION 
NO. 
4 
(2009 
OF 
THE 
PHILIPPINE 
CONGRESS) AND REPUBLIC ACT NO. 10149.”
SECTION 6. Section 15 of the same Act is hereby amended to read as follows;
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“SEC. 15. Fiscal Autonomy. — The Authority shall enjoy fiscal 
autonomy. All moneys earned by the Authority from the 
collection/levy of any and all such fees, charges, dues, assessments 
and fines it is empowered to collcct/lcvy under this Act shall be 
used solely to fund the operations of the Authority.
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THE AUTHOIUTY SHALL LIKEWISE BE EXEMPTED 
FROM THE PROVISIONS OF REPUBLIC ACT NO. 7656 
OR THE DIVIDEND LAW. THE INCOME GENERATED 
BY THE AUTHOIHTY FROM AIR NAVIGATIONAL 
CHARGES SHALL BE UTILIZED FOR COMPLIANCE 
W n H INTERNATIONAL STANDARDS OF SAFETY.
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The utilization of any funds coming from the collection and/or levy 
of the Authority shall be subject to the examination of the 
Congressional Oversight Committee (COCAAP). THE COCAAP 
MAY REQUIRE THE AUTHORITY TO SUBMIT, FURNISH 
OR 
PROVIDE 
ANY 
AND 
ALL 
DOCUMENTS 
IN 
RELATION TO THE UTILIZATION OF FUNDS OF THE 
AUTHORITY 
AND 
ANY 
OTHER 
NON-FIN ANCIAL 
DOCUMENTS RELATIVE TO THE DUTIES, FUNCTIONS, 
OPER.VHONS OF THE AUTHORITY.”
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SECTION 7. Section 18 of the same Act is hereby amended to read as follows:
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“SEC. 18. Compensation and Other Emoluments of 
Authority Personnel. - Within six 
(6) 
months 
from 
the 
effectivity of this Act, the Board shall determine the new


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schedule of salaries of the employees of the Authority 
subject to the compliance with 
the 
existing compensation 
laws AND REVISE THE SAME FROM TIME TO 
TIME 
AS IT MAY DEEM NECESSARY: Provided, That the Board 
shall 
determine and fix the compensation, EMOLUMENTS and 
fringe benefits of 
employees holding technical positions [ that 
are not common to the other agencies of 
the government which 
shall be specified in the Implementing Rules and Regulations ].
IT SHALL PROVIDE ANNUAL REVIEWS OR 
INCREASES BASED ON PRODUCTIVITY.”
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SECTION 8. A new section 18-A is hereby inserted to read as follows:
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“SEC. 18-A. 
MANAGEMENT 
OFFICIALS 
AND 
EMPLOYEES; MERIT SYSTEM- 
THE BOARD 
SHALL 
ESTABLISH 
A 
HUMAN 
RESOURCES 
MANAGEMENT 
SYSTEM, WHICH SHALL PROMOTE 
PROFESSIONALISM 
AT 
ALL 
LEVELS 
OF 
THE 
AUTHORITY 
IN 
ACCORDANCE 
WITH 
SOUND 
PRINCIPLES OF MANAGEMENT.
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A PROGRESSIVE COMPENSATION STRUCTURE, BASED 
ON, AND EQUIVALENT TO THE STANDARDS OF THE 
AVIATION INDUSTRY, AS PRACTICED AND OBSERVED 
IN THE INTERNATIONAL 
AVIATION INDUSTRIES, 
INCLUDING 
THE 
STANDARDS 
SET 
BY 
THE 
INTERNATIONAL CIVIL AVIATION ORGANIZATION, 
SHALL BE ADOPTED AS AN INTEGRAL COMPONENT 
OF 
THE 
AUTHORITY’S 
HUMAN 
1U:S0URCES 
PROGRAM.”
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SECTION 9. A new section 18-B is hereby inserted to read as follows:


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“SEC. 18-B. EXIRA COMPENSATION. - ALL lEATED 
AND/OR 
LICENSED 
AIRMEN 
AND 
SUCH 
OTHER 
PERSONS 
OF 
THE 
AlITHORITY 
WHO 
MAY 
BE 
AUTHORIZED 
TO 
UNDER FAKE 
OR 
PERIORM 
REGULAR 
AND 
FREQUENT 
FLIGHTS 
IN 
THE 
PERFORMANCE OF THEIR DUTIES, SHALL RECEIVE, 
UPON APPROVAL OF THE AUTHOIHTY, IN ADDITION 
TO 
THEIR 
BASE 
PAY, 
AN 
INCREASE 
IN 
COMPENSATION OF AT LEAST FIFTY PERCENTUM 
(50%) OF THEIR RESPECTIVE BASE PAY; PROVIDED, 
HOWEVER, 
THAT 
THE 
NUMBER 
OF 
HOURS 
ACTUALLY 
FLOWN 
BY 
SUCH 
AIRMEN 
AND 
AUTHOIHZED PERSONNEL SHALL NOT BE LESS THAN 
FOUR (4) PER MONTH; PROVIDED, FURTHER, THAT 
THE 
AFOREMENTIONED 
INCREASE 
IN 
COMPENSATION SHALL BE MANDATORY ONLY IN 
THE FIRST INSTANCE FROM THE EFFECTIVTTY OF 
THIS ACT; PROVIDED, FINALLY, 
THAT FUTURE 
MANDATORY INCREASES IN THE COMPENSATION OF 
THE RATED AND/OR LICENSED AIRMEN AND SUCH 
OTHER PERSONS OF THE AUTHORITY WHO MAY BE 
AUTHORIZED 
TO 
UNDERTAKE 
OR 
PERFORM 
REGULAR 
AND 
FREQUENT 
FLIGHTS 
IN 
THE 
PERFORMANCE 
OF 
THEIR 
DUTIES, 
MAY 
BE 
INCREASED BY THE AUTHORITY ONLY IF IT HAS 
SUFFICIENT BUDGET FOR THE SAME AND IF IT WILL 
SERVE THE INTEREST OF THE AVIATION INDUSTRY 
AS A WHOLE.”
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SECTION 10. A new section 18-C is hereby inserted to read as follows:
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“SEC. 
18-C. 
ENU’LOYMENT 
OF 
PERSONS 
FOR 
CONFIDENTIAL, HIGHLY TECHNICAL AND POLICY 
DETERMINING 
POSITIONS 
-  
THE 
DIRECTOR


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GENLRAL 
MAY, 
MAKE 
APPOINIMEMS 
TO 
CONFIDENTIAL, HIGHLY TECHNICAL, AND POLICY 
DETERMINING POSITIONS AS MAY BE REQEIRED BY 
THE I UNCTIONS AND RESPONSlBlLn iES OF THE 
OFFICE.”
SECTION 11. Section 24 of the same Act is hereby amended to read as follows;
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“SEC. 24. Powers of the Board. The Board shall have the 
following general powers;
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(d) 
ANY 
LAW 
TO 
THE 
CONTRARY 
NOTWn ilSTANDING, ORGANIZE, RE-ORGANIZE, AND 
[Djdetermine the organizational structure of the Authority in 
accordance 
with the provisions of this Act, establish a human 
resources management system based on merit and fitness, 
CREATE, 
TRANSFER, 
RE-ALIGN 
AND 
ABOLISH 
OFFICES AND 
POSITIONS, 
and 
adopt 
a 
rational 
compensation and benefits scheme EQUIVALENT TO THE 
STANDARDS SET BY THE INTERNATIONAL CIVIL 
AVIATION ORGANIZATION (ICAO);
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[ (e) Exercise appellate powers on any decisions, findings and 
rulings of the Director 
General, 
to 
issue 
subpoena 
ad 
testificandum or subpoena duces tecum requiring the attendance 
and testimony of witnesses in any matter or inquiry pending before 
the Board and require the production of books, papers, contracts, 
agreements and all other documents submitted for purposes of this 
section to be under oath and verified by the person in custody 
thereof as to the truth and correctness of data appearing in such 
books, papers, tariffs, contracts, agreements and all other 
documents;


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(f) 
Exercise appellate powers to order the taking of depositions 
in any proceeding, or investigation, pending before the Board at 
any stage of such proceeding or investigation; ]
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[ (j) Promulgate rules and regulations as may be necessary in the 
interest of safety in 
air commerce pertaining to the issuance of 
the airman’s certificate including the licensing of operating and 
mechanical personnel, type certificate for aircraft, aircraft engines, 
propellers and appliances, airworthiness certificates, air carrier 
operating certificates, air agency certificates, navigation facility 
and aerodrome certificates; air traffic routes; radio and aeronautical 
telecommunications and air navigation aids; aircraft 
accident 
inquiries; aerodromes, both public and private-owned; construction 
of obstructions to aerodromes; height of buildings; antennae and 
other edifices; registration of aircrafts; search and rescue; 
facilitation of air transports; operations of 
aircrafts, 
both 
for 
domestic and international, including scheduled and non- 
scheduled; meteorology in relation to civil aviation; rules of the 
air; air traffic services; rules for 
prevention of collision of 
aircrafts; identification of aircraft; rules for safe altitudes of flight; 
and such other rules and regulations, standards, governing other 
practices, methods and/or procedures as the Director General may 
find necessary and appropriate to provide adequately for safety 
regularity and efficiency in air commerce and air navigation; ]
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[ (m) Adopt a system for the registration of aircraft as hereinafter 
provided;]
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[ (q) Upon its own initiative or the recommendation of the 
Director General or an application of a private person, grant 
exemption from the requirements of observing rules or regulations 
issued in accordance with this Act: Provided, That said grant of 
exemption is not prejudicial to flight safety;
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(r) Formulate rules and regulations concerning compliance of the 
carrier and the public for the safe transport of goods and materials 
by air pursuant to international standards or Annexes to the 
Chicago Convention; and
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(s) In coordination with the appropriate government agency 
tasked to provide airport security, shall:
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(1) Prescribe reasonable regulation requiring that all passengers and all 
property intended to be carried in the aircraft cabin in commercial 
air transport be screened by wcapon-dctccting procedure or 
facilities employed or operated by employees or agents of the air 
operator or foreign air operator prior to boarding the aircraft for 
such transportation;
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(2) Prescribe such other reasonable rules and regulations requiring 
such parties, methods and procedures as the Director General may 
find necessary to protect persons and property aboard aircraft 
operating in commercial air transport against acts of criminal 
violence and aircraft piracy; and
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(3) To the extent practicable, require uniform procedures for the 
inspection, detention, and search of persons and property in 
domestic commercial air transport and international commercial air 
transport to assure their safety and to assure that they will receive 
courteous and efficient treatment by air operators and their agents 
and employees. ]
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(Q) APPROVE POLICY ON LOCAL AND FOREIGN 
TRAVEL, AND THE CORRESPONDING 
EXPENSES, 
ALLOWANCES, 
PER 
DIENIS 
OF 
OFFICERS, 
EMPLOYEES, 
AGENTS 
OF 
THE 
AUTHORITY, 
NOTWITHSTANDING 
THE 
PROVISIONS 
OF 
PRESIDENTIAL DECREE NO. 1177, EXECUTIVE ORDER 
292, 
EXECUTIVE 
ORDER 
248, 
AS 
AMENDED, 
EXECUTIVE ORDER 298, AND SIMILAR LAWS;
(R) EXERCISE THE POW ER OF EMINENT DOMAIN FOR 
THE PURPOSE OF THIS 
ACT 
IN 
THE 
MANNER 
PROVIDED 
BY 
LAW, 
PARTICULARLY, 
THE 
PREREQUISITES OF TAKING OF POSSESSION AND THE 
DETERMINATION 
AND 
PAYMENT 
OF 
JUST 
COMPENSATION; AND
(S) THE BOARD MAY PERFORM SUCH ACTS, THRU 
THE DIRECTOR GENERAL 
OR 
APPROPRIATE 
OFFICE, CONDUCT SUCH INVESTIGATION IN THE 
PERFORMANCE OF ITS QUASI JUDICIAL FUNCTIONS, 
AS IT SHALL DEEM NECESSARY TO CARRY OUT THE 
PROVISIONS OF THIS ACT.
IN EXERCISING THE POW ERS GRANTED UNDER THIS 
ACT, THE BOARD SHALL GIVE FULL CONSIDER/VHON 
TO THE REQUIREMENTS OF NATIONAL DEFENSE, 
COMMERCIAL AND GENERAL AVIATION, AND TO THE 
PUBLIC RIGHT OF TRANSIT TUROUGU NAVIGABLE 
AIRSPACE.”
30
SECTION 12. Section 25 is hereby amended to read as follows:
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“SEC. 25. Issuance of Rules and Regulations. - The [ Board, in 
consultation with the ] Director General, shall issue and provide for 
the enforcement of such orders, rules and regulations as may be 
necessary to give effect to the provisions of this Act. All rules and 
regulations issued in accordance with the provisions of this Act shall 
be fonnally 
promulgated and periodically reviewed and updated in 
accordance with the requirements of the Administrative Code of the 
Philippines or any amendment or successor thereto and the 
International 
Civil 
Aviation 
Organization 
Standards 
and 
Recommended Practices. [Pending the promulgation of such new 
rules and regulations, the current rules and regulations of the ATO 
shall continue to apply. ]”
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SECTION 13. Section 26 of the same Act is hereby amended to read as follows:
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“SEC. 26. Setting of Charges and Fees. - The Board, after 
consultation with the Director General, and after public hearing, 
shall determine, fix, impose, collect or receive reasonable charges, 
fees, dues or assessments in respect of aviation certificates, 
licenses and all other authorizations or permissions authorized to 
be issued under this Act and all services performed by the 
Authority 
BASED 
ON 
THE 
PRINCIPLE 
OF 
COST 
RECOVERY AT AN AGGREGATE LEVEL All charges and 
fees shall be formally promulgated in accordance with the 
requirements of the Administrative Code of the Philippines or any 
amendment or successor thereto. Pending the promulgation of such 
new schedule of charges and fees, the current charges and fees of 
the ATO shall continue to apply.”
SECTION 14. Section 27 of the same Act is hereby amended to read as follows:
“SEC. 27. Issuance of Rules of Procedure and Practice. - The [ Board 
may authorize the ] 
Director General [ to ] shall issue or amend 
rules of procedures and practice BEFORE 
THE 
AUTHORITY 
IN RELATION TO ITS REGULATORY FUNCTION as may be
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required to be issued pursuant to the provisions of this Act or issue 
and adopt rules and 
regulations [ and other ] TO IMPLEMENT 
THE REGULATORY issuances of tlie ICAO. [ Pending the 
promulgation of such new rules of procedures and practice, current 
rules of procedures and practices of the ATO shall continue to 
apply.]”
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25
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SECTION 15. Section 28 of the same Act is hereby amended to read as follows:
“SEC. 28. Appellate [ Powers ] Jurisdiction -  [ The Board, on an 
appeal properly taken by an interested party from a decision, 
judgment or order of the Director General, shall have the power to:
(a) Review, confirm, modify, revise, amend or reverse, as the 
case may be, decisions, judgments and/or orders of the Director 
General;
(b) Confirm, remit, mitigate, increase or compromise, as the case 
may be, fines imposed by the Director General pursuant with the 
provisions of this Act; and
(c) Review, confirm, modify, revise, amend or reverse, as the 
case may be, impositions by the Director General of liens on 
personal and real properties of entities, persons, corporations or 
partnerships in default, or those who have failed to perform their 
obligations pursuant to rules and regulations promulgated under 
this Act, or those who shall have failed to pay the fines or other 
pecuniary penalties for violation thereof
In no case that the Director General shall participate in the hearing 
and adjudication of an appealed case before the Board where the 
subject of appeal is a judgment or decision rendered by his office.
In such case, it requires four (4) concurring votes of the 
members 
of the Board who actively participated in the deliberation of the
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appealed case before the judgment or decision of the Director 
General can be modified or reversed. ]
ALL DECISIONS, RULINGS, RESOLUTIONS OF THE 
BOARD 
AND 
THE 
DIRECTOR 
GENERAL 
ARE 
APPEALABLE TO THE COURT OF APPEALS.”
SECTION 16. Section 35 of the same Act is hereby amended to read as follows:
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“SEC. 35. Powers and Functions of the Director General. - The 
Director General shall be the chief executive and operating officer 
of the Authority. He shall have the following powers, duties and 
responsibilities:
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(d) DETERMINE THE ORGANIZATIONAL STRUCTURE
OF THE AUTHORITY IN ACCORDANCE WITH THE 
PROVISIONS OF THIS ACT, ESlABLISH A HUMAN 
RESOURCES 
MANAGE.MENT 
SYSTEM 
BASED 
ON 
MERIT AND FITNESS, AND ADOPT A RATIONAL 
COMPENSATION AND BENEFITS SCHEME; EXERCISE 
APPELLATE POWERS TO 01U)ER THE TAKING OF 
DEPOSITIONS 
IN 
ANY 
PROCEEDING, 
OR
INVESTIGATION, PENDING BEFORE THE BOARD AT 
ANY 
STAGE 
OF 
SUCH 
PROCEEDING 
OR
INVESTIGATION;
(e) To issue air OPERATOR certificate in accordance with the 
minimum safety standards for the operation of the air carrier to 
whom such certificate is issued. The air OPERATOR certificate 
shall be issued only to aircrafts registered under the provisions of 
this Act.
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AN AIR OPERATOR CERTIFICATE HOLDER MAY
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OPERATE 
AND 
USE 
FOREIGN-REGISTERED 
AIRCRAFTS 
PROVIDED 
THAT 
THE 
STATE 
OF 
REGISTRATION 
DELEGATES 
TO 
THE 
DIRECTOR 
GENEIUVL 
THE 
TECHNICAL 
AND 
SAFETY 
OVERSIGHT 
FUNCTIONS 
OVER 
THE 
AIRCRAFT 
AND/OR ITS CREW, AS APPLICABLE PURSUANT TO 
ICAO ARTICLE S3BIS, AND SUBJECT TO SUCH RULES 
AND 
REGULATIONS 
PROMULGATED 
BY 
THE 
AUTHORITY.
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(F) PROMULGATE RULES AND REGULATIONS AS MAY 
BE NECESSARY IN THE INTEREST OF SAFETY IN AIR 
COMMERCE PERTAINING TO THE ISSUANCE OF THE 
AIRMAN'S CERTIFICATE INCLUDING THE LICENSING 
OF OPEIUVITNG AND MECHANICAL PERSONNEL, TYPE 
CERTIFICATE FOR AIRCRAFT, AIRCRAFT ENGINES, 
PROPELLERS AND APPLIANCES, AIRWORTHINESS 
CERTIFICATES, 
AIR 
CARRIER 
OPERATING 
CERTIFICATES, 
AIR 
AGENCY 
CERTIFICATES, 
NAVIGATION 
FACILITY 
AND 
AERODROME 
CERTIFICATES; AIR TIUVFFIC ROUTES; RADIO AND 
AERONAUTICAL TELECOMMUNICATIONS AND AIR 
NAVIGATION AIDS; AIRCRAFT ACCIDENT INQUIRIES; 
AERODROMES, BOTH PUBLIC AND PRIVATE-OWNED; 
CONSIRUCTION 
OF 
OBSTRUCTIONS 
TO 
AERODROMES; HEIGHT OF BUILDINGS; ANTENNAE 
AND 
OTHER 
EDIFICES; 
REGISTRATION 
OF 
AIRCRAFTS; SEARCH AND RESCUE; FACILITATION OF 
AIR TIU\N SPORTS; 
OPERAllONS OF A1R(RAF1S, 
BOTH 
FOR 
DOMESTIC 
AND 
INTERNA I IONAL, 
INCLUDING 
SCHEDULED 
AND 
NON-SCHEDULED; 
METEOROLOGY IN RELATION TO CIVIL AVIATION; 
RULES OF THE AIR; AIR TRAFFIC SERVICES; RULES 
FOR PREVENTION OF COLLISION OF AIRCRAFTS,
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IDENTIFICATION OF AIRCRAFT; RULES FOR SAFE 
ALTITUDES OF FLIGHT; AND SUCH OTHER RULES 
AND 
REGULATIONS, 
STANDARDS, 
GOVERNING 
OTHER PRACTICES, METHODS AND/OR PROCEDURES 
AS THE DIRECTOR GENERAL MAY FIND NECESSARY 
AND APPROPRIATE TO PROVIDE ADEQUATELY FOR 
SAFETY 
REGULARITY AND EFFICIENCY 
IN 
AIR 
COMMERCE AND AIR NAVIGATION;
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(v) Adopt a system for the registration of aircraft as hereinafter 
provided.”
SECTION 17. Section 40 of the same Act is hereby amended to read as follows:
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“SEC. 40. Creation of Flight Standards Inspectorate Service. - (a) [
The Board, other than the offices it shall create in furtherance of this 
Act, shall establish a permanent office known as the Fliglit Standards 
Inspectorate Service (FSIS) that will ] assist the Director General in 
carrying out the responsibilities of his office for certification and 
ongoing inspections of aircraft, airmen and air operators.
The FSIS shall perfonn the following functions:
(1) Airworthiness inspection;
(2) Flight operations inspection and evaluation; and
(3) Personnel licensing.”
[ Furthermore, the Board shall create, but not limited to, the following 
offices which will 
provide support to tlie functions of the FSIS, 
namely; Aircraft Registration, Aircraft Engineering and Standards, 
Ainnen Examination Board and Office of the Flight Surgeon.]
SECTION 18. Section 73 of the same Act is hereby amended to read as follows:
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“SEC. 73. Statutory Lien AND POW ER TO DETAIN. - The 
Director General[, after complying with the required legal 
formalities provided by law,] shall have the power to impose lien 
on AND DETAIN aircraft and machinery:
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(a) If the charges and other fees are not paid in full on due date or 
any part of the charges or the late payment penalty thereto remains 
unpaid; and
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(b) Failure to pay administrative fines arising from violation of any 
rules and regulations promulgated by the Authority.”
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SECTION 19. A new section 81-B is hereby inserted to read as follows:
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“SEC. 81.B Notwithstanding Section 81 (b), the penalties provided 
under Section 81, 
paragraph (b), clauses (5), (6), (7), (8), 
(9),(10), (11), and (12), may be imposed by a court of competent 
jurisdiction after the filing of a proper criminal complaint by an air 
operator, airman, or crew member.”
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SECTION 20. A new section 84-A is hereby inserted to read as follows:
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“SEC. 84-A. EXECUTION OF MONETARY JUDGMENT. - 
THE 
DIRECTOR 
GENEITAL 
IS 
AUTHORIZED 
TO 
ENFORCE MONETARY JUDGMENTS THROUGH THE 
SHERIFF WHO SHALL DEMAND THE IMMEDIATE 
PAYMENT OF THE FULL AMOUNT STATED IN THE 
WRIT OF EXECUTION TO BE IMPOSED FOR EACH 
VIOLATION OF THIS ACT.
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FOR THIS PURPOSE, THE DIRECTOR GENERAL MAY 
ISSUE AN ORDER DIRECTING THE SHERIFF TO 
REQUEST THE ASSISTANCE OF LAW ENFORCEMENT 
AGENCIES TO ENSURE COMPLLVNCE WITH THE WRIT
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OF EXECUTION, ORDERS OR PROCESSES.”
SECTION 21. Section 91 of the same Act is hereby amended to read as follows:
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“SEC. 
91. Congressional 
Oversight 
Committee. 
— 
A 
Congressional Oversight Committee, hereinafter referred to as the 
“Committee”, is hereby constituted in accordance with the 
provisions of this Act. The Committee shall be composed of the 
Chairman of the Senate Committee on Public Services and 
Chairman of the House Committee on Transportation and four (4) 
additional members from each House to be designated by the 
Senate President and the Speaker of the House of Representatives, 
respectively. The Committee shall, among others, in aid of 
legislation:
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(a) Monitor and ensure the proper implementation of this Act;
(b) Review the collection performance of the Authority; and
(c) Review the proper implementation of the programs of the 
Authority and the use of its collected fund AND BUDGET.
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In furtherance of the hereinabove cited objectives, the Committee 
is empowered to require the Authority to submit all pertinent 
information including, but not limited to, 
its collection 
performance data and its annual audited financial statements 
certified by the Commission on Audit. ANY MEMBER OF THE 
COMMITTEE OR HIS OR HER liEPRES E NT ATI VE IS 
AUTHORIZED TO SIT AS AN OBSERVER IN ANY OF 
THE MEETING OR FUNCTION OF THE BOARD. The 
Congressional Oversight Committee shall be in existence for a 
period of [ five (5) ] TEN (10) YEARS FROM THE 
EFFECTIVITY OF THIS ACT, and thereafter, its oversight 
functions shall be exercised by the Senate Committee on Public 
Services and the House Committee on Transportation acting 
separately.
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SECTION 22. Transitory Provisions. -  All powers, duties and rights vested by law
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and exercised by the authority relating to the planning, development, control, supervision,
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construction, maintenance, operation, provision of services and facilities and the efficient
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functioning of all domestic and international airports pursuant to R.A. No. 9497, shall remain
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with the authority until the airport governing authority tasked to implement these functions is
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established not more than one (1) year from the effcctivity of this Act.
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All assets, real and personal properties, contracts, records and documents, funds and
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revenues owned by or vested in the authority in relation to the above powers, duties and
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rights shall be transferred to the airport governing authority. In the interim, the authority shall
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separate the developmental and commercial functions by implementing an organizational
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restructuring that will enable and ensure the functional separation within a period of one (1)
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year from the effcctivity of this Act.
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SECTION 23. Repealing Clause. -  Republic Act No. 10149 and Republic Act No.
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7656 and other laws, decrees, executive orders, rules and regulations and other issuances or
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part thereof, which are inconsistent with this Act, are hereby repealed, amended, or modified
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accordingly.
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SECTION 24. Ejfectivity. -  This Act shall take fifteen (15) days after its publication in
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two (2) newspapers of general circulation.
Approved,
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