EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
SENATE 
S. B. No. 2313
Introduced by Senator SONNY ANGARA
2^ o 
E-FJLED
oi date;
</>
July 5, 2021
TIMP*.04:36 pm
AN ACT
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT 9497, OTHERWISE KNOWN 
CIVIL AVIATION AUTHORITY ACT OF 2008
EXPLANATORY NOTE
In 2008, the Civil Aviation Authority of the Philippines (CAAP) was created by 
virtue of Republic Act No. 9497. The law designates CAAP as the civil aviation authority 
of the country which shall set comprehensive, clear, and impartial rules for the aviation 
industry, and shall be an independent regulatory body with quasi-judicial and quasi­
legislative powers with corporate attributes.
According to the International Air Transport Association (lATA), the pandemic 
has greatly affected the aviation industry as its financial performance continues to 
drop and would continue to suffer deep losses in 2021. However, even prior to the 
pandemic, the technical report of the United States Federal Aviation Authority (FAA) 
has cited 23 "critical elements" that should be addressed for the improvement of the 
country's aviation status, namely, 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.
After twelve years from the enactment of RA 9497, policy interventions should 
be made 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. According to the Journal of Airport


Transport Management on 14 September 2020 government and public authorities 
play a crucial role at all levels in the future development of the aviation industry.
To this end, this measure proposes to amend RA 9497, specifically to:
1. Increase the term of Director General (DG) to a fixed term of eight (8) years 
to ensure continuity in the civil aviation system, the promotion, development 
and regulation of the technical, operational, safety, and aviation security 
functions by insulating the DG from changes of administration;
2. Update the composition of the CAAP Board of Directors to include private 
sector representatives in order to strengthen the safety and oversight 
structure of the Board;
3. Exempt CAAP from the coverage of the GCG law and the Salary 
Standardization Law, as their functions are distinctly and highly technical in 
nature as compared to those performed by other "government employees"; 
and
4. Enhance fiscal autonomy of CAAP by exempting them from the coverage of 
Republic Act No. 7656 or the Dividend Law to maximize the use of the 
revenues generated by CAAP.
To better shape the recovery of the aviation industry, sustainable reforms in air 
transportation is necessary so as to guarantee the safety, reliability and efficiency of 
air transport in the country.
In view of the foregoing, passage of this bill is earnestly sought.
SONNY ANGARA


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EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
SENATE 
S. B. No. 2313
Introduced by Senator SONNY ANGARA
” e-fTled*’1' 
til date: Ju|y5,202i m
00 time: 04:36pm
¥
erttrs
AN ACT
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT 9497, OTHERWISE KNOWN 
CIVIL AVIATION AUTHORITY ACT OF 2008
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:
"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 
CONTRACTING STATE TO THE CONVENTION ON 
INTERNATIONAL CIVIL AVIATION, COMMONLY KNOWN AS 
THE CHICAGO CONVENTION. THE AUTHORITY SHALL 
COORDINATE WITH OTHER GOVERNMENT AGENCIES IN 
ADVANCING AVIATION SECURITY IN THE PHILIPPINES.
TOWARDS THIS END, THE GOVERNMENT SHALL 
EXTEND ALL MEANS AND MECHANISMS NECESSARY FOR THE 
AUTHORITY TO FULFILL ITS VITAL TASK OF PROMOTING AND 
ENSURING SAFE AND EFFICIENT AIR TRANSPORT.


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IN VIEW OF THE CRUCIAL ROLE, AND THE NATURE,
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POWERS AND FUNCTIONS OF THE AUTHORITY, AS A
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GOVERNMENT INSTRUMENTALITY WITH CORPORATE
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POWERS, IT SHALL ENJOY FISCAL AND ADMINISTRATIVE
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AUTONOMY."
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SEC. 2. Insert the following definitions in Section 3 of the same Act, to read as
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follows and renumber the sub-sections therein accordingly:
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"(Q) air navigation charges - REFERS TO ALL
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OPERATIONAL CHARGES FOR THE USE OF ENROUTE AND
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AIRPORT/TERMINAL NAVIGATION FACILITIES AND
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SERVICES PROVIDED BY THE CIVIL AVIATION AUTHORITY
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OF THE PHILIPPINES TO AIRCRAFT ON INTERNATIONAL,
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DOMESTIC AND GENERAL AVIATION OPERATIONS FLYING
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INTO AND OUT OF AIRPORTS IN THE REPUBLIC OF THE
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PHILIPPINES, AND AIRCRAFT OVERFLYING THE MANILA
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FLIGHT INFORMATION REGION, WITHOUT LANDING AT ANY
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PHILIPPINE AIRPORT;"
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XXX
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"(JJ) COMMERCIAL AIR TRANSPORT OPERATION - AN
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AIRCRAFT OPERATION INVOLVING THE TRANSPORT OF
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PASSENGERS, CARGO OR MAIL FOR REMUNERATION OR
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HIRE;"
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SEC. 3. Section 3 (eee) and (fff) of the same Act is amended to read as follows:
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"(EEE) landing AND TAKEOFF FEES - refers to [all-c-harges-for
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tho usc of any landing-strip-or runway by any Qircraft4anding or taking
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off-at-an-acrodrome] FEES CHARGED FOR THE USE OF AIRCRAFT
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OF THE AIRPORT FACILITIES AND SERVICES FOR LANDING
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AND TAKE-OFF;"
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"(FFF) [Terminal] PARKING Fees — refers to [charges for-parking-at
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or near the-ramp, terminal areaT-or-building,-for purposes-of-loading
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or-unloading-passengers-and/or cargo] ALL FEES CHARGED TO THE
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AIRCRAFT FOR THE USE OF FACILITIES AND SERVICES FOR


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PARKING AT THE TERMINAL APRON OR REMOTE PARKING 
AREAS FROM THE TIME OF LANDING UP TO THE TIME OF 
TAKE-OFF;"
SEC. 4. Section 4 of the same Act is hereby amended to read as follows: 
"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.
THE AUTHORITY SHALL BE EXEMPT 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, ANY KIND OF ADDITIONAL BENEFIT NOT 
PRESCRIBED UNDER THE LAW SHALL BE GRANTED UNLESS 
THE AUTHORITY HAS FULLY PAID ALL TAXES FOR WHICH IT 
IS LIABLE.
XXX
(a] [Establishmont-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-bc-appointed by-the-President-of-the


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PhfttppincG 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 10149, [TJthe 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 [feur-(yl)] EIGHT (8) YEARS years [. His appointment may be 
extended for another non-extendible term of four (4) 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 PREDECESSOR.
THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT 
THE DIRECTOR GENERAL FROM A SHORTLIST OF THREE 
NOMINEES PREPARED BY THE BOARD OF DIRECTORS 
CONSTITUTED AS A SEARCH COMMITTEE COMPOSED OF FIVE 
MEMBERS THEREOF WHO SHALL RECEIVE AND EVALUATE 
NOMINATIONS. NO INCUMBENT DIRECTOR GENERAL SHALL 
BE A MEMBER OF THE SEARCH COMMITTEE."
xxx"
SEC. 5. Section 5 of the same Act is hereby amended to read as follows: 
"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:
(a) The Secretary of the Department of Transportation [end 
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;


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(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;
(I) THE SECRETARY OF THE DEPARTMENT OF NATIONAL 
DEFENSE; AND
(3) TWO (2) REPRESENTATIVES FROM THE PRIVATE 
SECTOR TO BE APPOINTED BY THE PRESIDENT OF THE 
PHILIPPINES: PROVIDED, THAT NO PERSON SHALL BE 
APPOINTED AS A MEMBER OF THE BOARD UNLESS HE IS 
A FILIPINO CITIZEN OF GOOD MORAL CHARACTER OF 
UNQUESTIONABLE INTEGRITY, AND RECOGNIZED 
COMPETENCE IN THE FIELD OF AVIATION, 
AERONAUTICAL ENGINEERING, ECONOMICS, LAW, AND 
INTERNATIONAL RELATIONS AND MANAGEMENT, OR 
RELATED FIELDS.
The Directors listed under subsections (a) to [(§)] (I) shall be ex 
officio members of the Board of Directors: Provided, That, in the 
absence of the Director appointed in subsections (c) to [(§}] (I), the 
Director concerned shall designate WITH FULL POWER AND 
AUTHORITY, IN WRITING, the officer [next in rank to him] WHO 
SHALL BE AT LEAST AN ASSISTANT SECRETARY, in his 
department or office to act on his behalf as a Director."
SEC. 6. Section 8 of the same Act is hereby amended to read as follows: 
"SEC. 8. Quorum. — The presence of at least [four (4)] SIX (6) 
members of the Board shall constitute a quorum and the majority vote 
of [thrGG-(3)] FOUR (4) members in a meeting where a quorum is 
present shall be necessary for the adoption of any rule, ruling, order, 
resolution, decision or other act of the Board in the exercise of its 
functions.
SEC. 7. Section 9 of the same Act is hereby amended to read as follows: 
"SEC. 9. Qualifications of Director General. - No person shall be 
appointed [or-dcsignatod] as the Director General unless he is a


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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."
SEC. 8. Section 10 of the same Act is hereby amended to read as follows: 
"SEC. 10. Board Meetings. — The Board shall meet regularly once a 
month and may hold special meetings to consider urgent matters upon 
call of the Chairman or upon the initiative of [feur-(d)] SIX (6) 
members. Internal rules of procedure in the conduct of Board 
meetings shall be as prescribed by the Board."
SEC. 9. Section 12 of the same Act is hereby amended to read as follows: 
"SEC. 12. Personnel. - [Qualified -existing personnel of-the Air 
Transportation Qffice (ATQ) shall be given preference in^-he-filling-up
ef-plantilla-positions-created in the—Authority,-subject to existing civil
service-rules and regulations.]
THE DIRECTOR GENERAL SHALL EXERCISE APPOINTING AND 
DISCIPLINING POWERS OVER ALL PERSONNEL OF THE 
AUTHORITY.
ALL POSITIONS IN THE AUTHORITY SHALL BE GOVERNED BY 
A COMPENSATION, POSITION CLASSIFICATION SYSTEM, 
AND QUALIFICATION STANDARDS APPROVED BY THE BOARD 
OF DIRECTORS BASED ON A COMPREHENSIVE JOB ANALYSIS 
AND AUDIT OF ACTUAL DUTIES AND RESPONSIBILITIES. THE 
AUTHORITY SHALL THEREFORE BE EXEMPT FROM EXISTING 
LAWS, RULES AND REGULATIONS ON COMPENSATION, 
POSITION CLASSIFICATION, AND QUALIFICATION 
STANDARDS. IT SHALL, HOWEVER, ENDEAVOR TO MAKE ITS 
SYSTEM CONFORM AS CLOSELY AS POSSIBLE WITH THE 
PRINCIPLE UNDER REPUBLIC ACT NO. 6758, AS AMENDED." 
SEC. 10. Section 15 of the same Act is hereby amended to read as follows: 
"SEC. 15. Fiscal Autonomy. — The Authority shall enjoy fiscal 
autonomy. All moneys earned by the Authority from the collection/levy


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of any and all such fees, charges, dues, assessments and fines it is
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empowered to collect/levy under this Act shall be used solely to fund
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the operations of the Authority. FOR THIS PURPOSES, THE
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AUTHORITY SHALL BE EXEMPT FROM THE PROVISIONS OF
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REPUBLIC ACT No. 7656 OR THE DIVIDEND LAW.
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The utilization of any funds coming from the collection and/or levy of
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the Authority shall be subject to the examination of the Congressional
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Oversight Committee (COCAAP).
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SEC. 11. 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
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Personnel. - Within six (6) months from the effectivity of this Act, the
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Board shall determine the new schedule of salaries of the employees
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of the Authority subject to the compliance with the existing
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compensation laws, CONSISTENT WITH THE PROVISIONS
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UNDER SECTION 5 HEREOF, AND REVISE THE SAME FROM
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TIME TO TIME AS IT MAY DEEM NECESSARY [^-Pr-evidcd-That
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the Board shall determine and fix the compensation, and-fringe
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bencfitG of-employcGS holding technical positions that are not common
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to-thc-other agencies of the govcrnmcnt-which shall be specified in
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the- Implementing Rules-and Regulations]. THE BOARD SHALL
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PROVIDE ANNUAL REVIEWS OR INCREASES BASED ON
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PRODUCTIVITY."
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SEC. 12. A new section 18-A is hereby inserted to read as follows:
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"SEC. 18-A. MANAGEMENT OFFICIALS AND EMPLOYEES;
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MERIT SYSTEM-THE BOARD SHALL ESTABLISH A
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HUMAN RESOURCES MANAGEMENT SYSTEM, WHICH
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SHALL PROMOTE PROFESSIONALISM AT ALL LEVELS OF THE
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AUTHORITY IN ACCORDANCE WITH SOUND PRINCIPLES OF
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MANAGEMENT.
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A PROGRESSIVE COMPENSATION STRUCTURE, BASED
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ON, AND EQUIVALENT TO THE STANDARDS OF THE AVIATION
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INDUSTRY, AS PRACTICED AND OBSERVED IN THE


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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 RESOURCES 
PROGRAM."
SEC. 13. A new section 18-B is hereby inserted to read as follows:
"SEC. 18-B. EXTRA COMPENSATION. - ALL RATED AND/OR 
LICENSED AIRMEN AND SUCH OTHER PERSONS OF THE 
AUTHORITY WHO MAY BE AUTHORIZED TO BOARD, 
UNDERTAKE OR PERFORM REGULAR AND FREQUENT 
FLIGHTS IN THE PERFORMANCE OF THEIR DUTIES, SHALL 
RECEIVE, UPON APPROVAL OF THE AUTHORITY, 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 AUTHORIZED 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 
EFFECTIVITY 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."
SEC. 14. A new section 18-C is hereby inserted to read as follows:
"SEC. 18-C. EMPLOYMENT OF PERSONS FOR CONFIDENTIAL, 
HIGHLY TECHNICAL AND POLICY DETERMINING POSITIONS


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- THE DIRECTOR GENERAL MAY, MAKE APPOINTMENTS TO
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CONFIDENTIAL, HIGHLY TECHNICAL, 
AND POLICY
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DETERMINING POSITIONS AS MAY BE REQUIRED BY THE
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FUNCTIONS AND RESPONSIBILITIES OF THE OFFICE."
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SEC. 15. Section 21 of the same Act is hereby amended to read as follows:
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"SEC. 21. Policies. - In the exercise and performance of its powers
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and duties under this Act, the Authority shall consider the following,
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among other things, as being in the public interest and in accordance
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with the public convenience and necessity:
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(a) xxx;
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(F) THE OBLIGATIONS OF THE PHILIPPINES AS A
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CONTRACTING STATE TO THE CONVENTION ON
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INTERNATIONAL CIVIL AVIATION, COMMONLY KNOWN AS
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THE CHICAGO CONVENTION."
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SEC. 16. Section 24 of the same Act is hereby amended and its subsections
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duly renumbered, as follows:
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"SEC. 24. Powers of the Board. - The Board shall have the following
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general powers:
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(a) xxx;
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(d) ANY LAW TO THE CONTRARY NOTWITHSTANDING,
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ORGANIZE, RE-ORGANIZE, AND [9]determine the organizational
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structure of the Authority in accordance with the provisions of this Act,
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establish a human resources management system based on merit and
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fitness, CREATE, TRANSFER, RE-ALIGN AND ABOLISH OFFICES
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AND POSITIONS, and adopt a rational compensation and benefits
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scheme EQUIVALENT TO THE STANDARDS SET BY THE
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INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO);
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[(c)-ExGrci5G QppcllotG powers on any decisions, findings and rulings
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of the Director CGncrol, to-issuc subpoena ad testificandum or
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subpoena-duces tecum-requiring -the attendance 'and testimony-of
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witnesses in any matter-or-inquiry-pending-before—the—Beard—aed
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require the-production-of booksT-papers, contracts,-agrGGments and


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ati-et-hcr documcnta-submittcd-for purposes of this section to -be under
oath and verifiod by thG-person-in custody thorcof as to the truth and
eerroctncGG of data appearing in-such books;-papers, tariffo, contracts,
agreemonts and all-othor documonts;]
[(O ExcrciGG appolloto powers to order the-taking of depositions in any
proceedingror investigation, pending before the Board at ony stage of
such proceeding or investigation;j
XXX
[(j)..Promulgate rules and regulations-as -moy be-necessary-in-the
interest of-safety in-----air-eommerc-e-pertaining to the-issuance of the
airman^-certificate including the licensing-of operating-ond mechanical
personneirtype certificate for oircraft, aircroft-enginesT-propellers and
appliances,-airworthiness certificates, oir-eorrier-operating-CGrtificates,
air-agency-certificates,-navigat-ion-focility and aerodrome certificates;
air-traffic routes; radio-and-aeronautical-telecommunications-and air
navigation-aids; aireraft-accident inquiriGs;-acrodromes, both-public
and-private-owned; construction of obstructions—to-aerodromes;
height of-buildings; antennae ■ and other-edifices; registration of
aircrafts; seorch and rescue; facilitation of-air-tran5perts,-opGration5
ef-airerafts,- both for domestic-and intcrnational,-including scheduled
and-n0n-scheduled;-meteorology-in-relation-tG-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;—aad—sach
other-rules-and-regulations, standards, governing-other-proctices,
met-heds—and/or procedures as the -Director General may—find
necessary and appropriate to provide adequatcly-for-safety regularity
and efficiency-in air eommerce-and air navigation,-]
XXX
[(m)—Adopt a system-for-the-registration of aircraft-os-hereinafter
provided;]
XXX
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(q) [Upon itG own-initiative or the recommendation of tho-DirGctor
General or-on application of □ private person,- grant exemption from
the-roquirements of observing--------rales- or ■ regulations -issued in
aecerdance-with this-Act: Provided, That Gold grant of—exemption
Is-not- prejudicial to flight-oafety;] APPROVE POLICY ON LOCAL 
AND FOREIGN TRAVEL, AND THE CORRESPONDING 
EXPENSES, ALLOWANCES, PER DIEMS 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) [formulate rules and-regulations-concerning -compliance-of the
carrier and the public for the safe transpert-of-goods and materials by
atr-pursuant to international standards or-Annexes -to-the -Chicago
Convention] EXERCISE THE POWER 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) [tn-coordination-with-the-appropriate government-agency tasked
to-provide-oirport security/ shall:
ffl-Pr-escribe reasonable regulation requiring that all passengers
and-all-property intended to be carried in the aircraft cabin in
eommercial air--transport be screened by weapon-detecting
procedure or facilities employed or-operated-by employees or
agents-of the-air operator- or foreign-oir—eperator-prior to
boarding the-aircraft for-such transportation;
(2)-Prcscribc such other roDsonable-rulcs and regulations requiring
5uc-h-partics,-methods ond-procodures-as the-Birector-General
may-find necessary to protect persons and-property aboard


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aircraft operating in commcrciQl air transport ogainst-octs of
criminal violence aRd-aircraft-pirocy; ond 
(3) To-thc extent practicable, require uniform procedures for the
inspcctionT-dGtcntion—and ccarch- of-persons and property in
demestic commcrcial-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 ogents and employees.]
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 POWERS GRANTED UNDER THIS 
ACT, THE BOARD SHALL GIVE FULL CONSIDERATION 
TO THE REQUIREMENTS OF NATIONAL DEFENSE, 
COMMERCIAL AND GENERAL AVIATION, AND TO THE 
PUBLIC RIGHT OF TRANSIT THROUGH NAVIGABLE 
AIRSPACE."
SEC. 17. Section 25 is hereby amended to read as follows:
"SEC. 25. Issuance of Rules and Regulations. - The [6oardr-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 formally 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."
SEC. 18. 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-tho promulgation of such 
ftcw-schodulc of charges Dnd-fccs,-thc current-charges and fees of the
ATO-shall continuG-to apply]."
SEC. 19. 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 authorizG 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 required to be issued 
pursuant to the provisions of this Act or issue and adopt rules and 
regulations [end-other] TO IMPLEMENT THE REGULATORY 
issuances of the ICAO. [Pending the-promulgation of such-new rules 
of-procedures and practice, current fules-of procedures and-practices
of-the-ATO shall continue to apply.]"
SEC. 20. Section 28 of the same Act is hereby amended to read as follows: 
"SEC. 28. Appellate [Powers] JURISDICTION - [The-Board, on an 
eppeal—properly-taken by- on interested party—from-a-decision,
judgment or order-of-the Director General,-shall-have the power to:
—(^3—Review, confirm, modifyT-reviseT-omend or reverse, as the case
may-be,-deci5ions,--judgments and/or orders of the Director-General;
—(b)—Confirm, remit, mitigate, increase or compromise, as-the case
may-beT-fines imposed by the Director General pursuant-with the
provisions of this-Act; and
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—(€)—Review,' confirm/ modify,- rcviso, amend or rovorsc, dg the cogc
fnayfegrimpositions-by-the Director General-of liens on personal and
real-properties of entities, persons, corporotioRS-or-portnerships in
defaulty-or those who have failed-to-perform------tlw------ebligafeions
pursuant teH-ules and regulations promulgated under-this Act,-or those
who-shall-have failed to pay the fines or-other-pecuniary penolties-for
vielation-thereof.
and-adjudication
-of--an -appealed-case before the-Board where
4n-sueh-case, it requires-four'(4) concurring-votes-of------the
memhers-of-the-Board who-octively-participated in-the deliberation-of
the-appealed case-before the judgment-or deeision-of the-Director
Generol can be modified or-reversed.]
ALL DECISIONS, RULINGS, RESOLUTIONS OF THE BOARD 
AND THE DIRECTOR GENERAL SHALL BE APPEALABLE TO THE 
COURT OF APPEALS."
SEC. 21. Section 40 of the same Act is hereby amended to read as follows: 
"SEC. 40. Creation of Flight Standards Inspectorate Service. - (a) The 
{Board-other than-tho offic-es-it-shall create in-furtheranee-of-this-Act/
shall-ostablish a permanent office-known-as-thej Flight 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 perform the following functions;
(1) Airworthiness inspection;
(2) Flight operations inspection and evaluation; and
(3) Personnel licensing."
[Furthermore, the-Board shall create,-but-not-limitcd to, thc-following
offices which will-------- provide-support to tho-functions of the FSIS,
namely: -Alrc-raft-Registration, Aircraft-------- Engineering------------- and
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StandardG, Airmen Examination Board and- Office-of—tho-Flight
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SuF§een7]
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SEC. 22. Section 73 of the same Act is hereby amended to read as follows:
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"SEC. 73. Statutory Lien AND POWER TO DETAIN. - The Director
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General [7-Qftcr complying-with the required lego I fermalitics-provided
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by-lawj] shall have the power to impose lien on AND DETAIN aircraft
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and machinery:
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(a) If the charges and other fees are not paid in full on due date or
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any part of the charges or the late payment penalty thereto remains
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unpaid; and
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(b) Failure to pay administrative fines arising from violation of any
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rules and regulations promulgated by the Authority."
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SEC. 23. Separability Clause. - If any provision of this Act is declared invalid
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or unconstitutional, the other provisions not affected thereby shall continue to be in
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full force and effect.
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SEC. 24. Repealing Clause - All laws, decrees, executive orders, rules and
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regulations and other issuances or part thereof, which are inconsistent with this Act,
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are hereby repealed, amended, or modified accordingly.
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SEC. 25. Effectivity Clause. -This Act shall take effect fifteen (15) days after
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its publication in the Official Gazette or in any newspaper of the general circulation.
Approved,
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