EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1490
Senate
©flic* o( tl)f gii ciTtarp
20 MAY -M P 3 08,
Introduced by Senator Grace Poe rec.
AN ACT
CREATING THE PHILIPPINE AIRPORTS AUTHORITY, DEFINING ITS 
POWERS, FUNCTIONS AND RESPONSIBILITIES, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
Explanatory Note
The Philippines has 85 airports nationwide, eleven (11) of which are classified 
as international airports under the new system of classification instituted by the Civil 
Aviation Authority of the Philippines (CAAP).1 Only airports owned by the national 
government are classified by the CAAP; the vast majority of minor aerodromes 
around the country are not owned by the national government and remain 
unclassified under the new scheme. Under the scheme, all domestic airports in the 
country are under the operational and supervisory control of CAAP pursuant to 
Republic Act No. 9497, while the international airports are governed by specific 
authorities and/or corporation created by law for the purpose.
Among others, the Manila International Airport Authority (MIAA) was 
originally created pursuant to Executive Order No. 778, as amended, and exercises 
jurisdiction over the Ninoy Aquino International Airport. The Clark International 
Airport is operated and managed by the Clark International Airport Corporation 
created by virtue of Executive Order 193. On the other hand, the Mactan-Cebu 
International Airport is under the operational and supervisory control of the Mactan- 
Cebu International Airport Authority in accordance with Republic Act No. 6958.
1 Civil Aviation Authority of the Philippines. Retrieved from https://www.caap.gov.ph/?page_id=2184


Currently, there is a need to upgrade existing international and domestic 
airports, and air navigation facilities in the country to comply with international 
standards of airport accommodation and services, and to meet the present and 
future air traffic and aviation services demands in the country. Studies have 
indicated that the objectives of providing high standards of accommodation and 
service within the context of a financially viable operation will best be achieved by a 
separate and autonomous regulatory body.
This bill seeks to ensure an integrated manner of operating international and 
domestic airport terminals in the country, and to avoid conflicting policies and 
programs on airport maintenance, operation and development, as well as flight 
operations, through the creation of a Philippine Airports Authority to handle the 
operations of all international and domestic airports in the country.
In view of the foregoing, the early passage of this bill is earnestly sought.
GRACEPOE


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EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
S. No. 1490
W(1« 0{tl)cfee.:rmvi>
20 MAY-4
Introduced by Senator Grace Poe R£Ct; <
AN ACT
CREATING THE PHILIPPINE AIRPORTS AUTHORITY, DEFINING ITS 
POWERS, FUNCTIONS AND RESPONSIBILITIES, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Title. - This Act shall be known as the "Philippine Airports Authority
Act".
Sec. 2. Definition of Terms. - For purposes of this Act, the following shall
mean:
a) Authority - shall refer to the Philippine Airports Authority.
b) Aircraft - any machine that can derive support in the atmosphere from the 
reactions of the air other than the reactions of the air against the earth's 
surface. The term, when used in this Act, shall refer to a civil aircraft only and 
will not include State or public aircraft.
c) Airport- shall refer to a defined area on land or water. Including any building, 
installation, facilities and equipment, intended to be used either wholly or In 
part for the arrival, departure and surface movement of an aircraft. The term, 
when used in this Act, shall include all domestic and international airports in 
the country.
d) Board- shall refer to the Board of Directors of the Authority.
Sec. 3. Creation of the Philippine Airports Authority. - There is hereby 
established a body corporate to be known as the Philippine Airports Authority, 
hereinafter referred to as the Authority, which shall be attached to the Department


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of Transportation (DOTr) and shall be headed by a General Manager as Chief
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Executive Officer of the Authority. The Authority may establish such offices,
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branches, agencies or subsidiaries as it may deem proper and necessary to 
administer and operate all domestic and international airport terminals in the 
country: Provided, That the establishment of a subsidiary shall have the prior 
approval of the President of the Philippines.
Sec. 4. Purposes and Objectives. - The Authority shall have the following 
purposes and objectives:
a) To help encourage and promote domestic and international air traffic in the 
Philippines as a means of accelerating the development of aviation, as a 
means of transportation in the country, as well as making the Philippines a 
center of international trade and tourism;
b) To formulate and adopt, for application in all domestic and international 
airport terminals in the country, internationally acceptable standards of airport 
accommodation and service; and
c) To upgrade and provide safe, efficient, and reliable airport facilities for 
domestic and international air travel.
Sec. 5. Functions, Powers and Duties of the Authority. - The Authority shall 
have the following functions, powers and duties:
a) To formulate, in coordination with the Civil Aviation Authority of the 
Philippines (CAAP), independent airport authorities and other appropriate 
government agencies, a comprehensive and integrated policy and program 
for all domestic and international airport terminals in the country, and to 
implement, review and update such policy and program periodically;
b) To control, supervise, construct, maintain, operate and provide such facilities 
and services as shall be necessary for the safe and efficient functioning of all 
domestic and international airport terminals in the country;
c) To promulgate rules and regulations governing the planning, development, 
maintenance, operation and improvement of domestic and international 
airport terminals in the country, and to control and/or supervise, as may be 
necessary, the construction of any structure or the rendition of any service 
within all domestic and international airport terminals;


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d) To sue and be sued in its corporate name;
e) To adopt and use a corporate seal;
f) To succeed by its corporate name;
g) To adopt its by-laws, and to amend or repeal the same from time to time;
h) To execute or enter into contracts of any kind or nature;
i) 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;
j) To exercise the power of eminent domain in the pursuit of its purposes and 
objectives;
k) To levy, and collect dues, charges, fees or assessments for the use of the 
airport premises, works, appliances, facilities or concessions or for any service 
provided by the Authority, subject to the approval of the Secretary of 
Transportation in consultation with the Secretary of Finance;
l) To invest its idle funds, as it may deem proper, in government securities and 
other evidences of indebtedness of the government;
m) To provide services, whether on its own or otherwise, within the airports and 
the approaches thereof, which shall include but not be limited to, the 
following:
1. Aircraft movement and allocation of parking areas of aircraft on the 
ground;
2. Loading or unloading of aircraft;
3. Passenger handling and other services directed towards the care, 
convenience and security of passengers, visitors and other airport 
users; and
4. Sorting, weighing, measuring, warehousing or handling of baggage 
and goods.
n) To prescribe and revise, from time to time as necessary, minimum safety 
standards for the operation of airport facilities in the Philippines;
o) To perform such other acts and transact such other business, directly or 
indirectly as may be necessary, incidental or conducive to the attainment of


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the purposes and objectives of the Authority, including the adoption of 
necessary measures to remedy congestion in the airports; and
р) To exercise all the powers of a corporation under the Corporation Law, insofar 
as these powers are not inconsistent with the provisions of this Act.
Sec. 6. Police Authority. - The Authority shali have the power to exercise such 
police authority, as may be necessary within its premises, to carry out its functions 
and attain its purposes and objectives. The grant of such powers shall be without 
prejudice to the exercise of functions within the same premises by other concerned 
government agencies as provided for by law: Provided, That the Authority may 
request the assistance of law enforcement agencies, including request for 
deputization as may be required. Such police authority shall be exercised in 
connection with the following, among others:
a) Maintenance of security to passengers, cargoes, aircraft, airport equipment, 
structures, facilities, personnel, funds and documents;
b) Regulating the entry to, exit from and movement within the airports;
с) Maintenance of peace and order, within the premises of the airports in 
coordination with local police authorities and other authorized peace-keeping 
entities within the airports;
d) Regulation and supervision of private security agencies operating within the 
airports; and
e) Enforcement of rules and regulations promulgated by the Authority pursuant 
to iaw.
Sec. 7. Airport Operation Certification. - Any person desiring to operate a 
private airport or air navigation facilities may file with the Authority an application for 
an operating certificate. If the Authority finds, after investigation, that such person is 
properly and adequately equipped and able to conduct a safe operation in 
accordance with the requirements of this Act and the rules and regulations, and 
standards prescribed therein, the Authority shall issue an airport operating certificate 
to such person. Each airport operating certificate shall prescribe such terms, 
conditions and iimitations as are reasonably necessary to assure safety In air 
transport. Unless the Authority determines that it would be contrary to public


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interest, such terms, conditions end limitetions, shall include, but not limited to, 
terms and conditions relating to:
a) The operation and maintenance of adequate safety equipment, including 
firefighting and rescue equipment capable of rapid access to any portion of 
the airport used for landing, take off, or surface maneuvering of aircraft; and
b) The condition and maintenance of primary and secondary runways.
For this purpose, the Authority shall inspect, classify, and rate any air 
navigation facilities and airports available for the aircraft as to its suitability for such 
use.
Sec. 8. Board of Directors. - The corporate powers of the Authority shall be 
exercised by and vested in a Board of Directors, hereinafter referred to as the Board. 
It shall be composed of eleven (11) members, as follows:
1) Secretary of the DOTr or his representative - Chairperson;
2) General Manager of the Authority - Vice-Chairperson;
3) Representative from the Office of the President;
4) Representative from the Department of Finance;
5) Representative from the Department of Tourism;
6) Representative from the Department of Justice;
7) Representative from the CAAP; and,
8) Four (4) representatives from the private sector to be appointed by the 
President of the Philippines for a term of three (3) years renewable for 
another term.
The Board shall meet at least once a month and as often as the exigencies of 
the service demand. The presence of at least five (5) members shall constitute a 
quorum, and the vote of a majority of the members present, there being a quorum, 
shall be necessary for the adoption of any rule, regulation, resolution, decision or 
any other act of the Board.
The members of the Board shall receive per diems, for every meeting actually 
attended: Provided, that such per diem shall conform to existing guidelines of the 
Commission on Audit. Members of the Board shall be reimbursed by the Authority for 
actual expenses, including travelling and subsistence expenses, incurred by them in 
the performance of their duties.


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No member of the Board shall have financial or pecuniary interest, directly or
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indirectly, in any business contract or transaction entered into by the Authority or in
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any privilege granted by it. Neither shall a member have any interest, financial or
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otherwise, in any undertaking or business with an inherent conflict of interest with
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the Authority.
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Sec. 9. Functions, Powers, and Duties of the Board. - The Board shall have
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the following functions, powers and duties:
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a) To define and approve the programs, plans, policies, procedures 
and
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guidelines of the Authority for the development and operation of the airports
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within the context of the overall Government objectives, and to control the
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management, operation and administration of the Authority;
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b) To recommend to the President of the Philippines, for appointment, a General
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Manager of the Authority who shall be the Chief Executive Officer of the
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Authority; and
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c) To approve the Authority's organizational and administrative structure,
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staffing pattern, operating and capital expenditures, and financial budgets,
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prepared in accordance with the corporate plan of the Authority, upon
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recommendation of the General Manager.
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Sec. 10. Deveiopment of New Airports. - The Board shall be responsible for
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the planning, development, construction, operation, maintenance or the expansion
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of airports. In planning and developing new airports, the Board shall consider:
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a) The suitability of a proposed site in terms of terrain and proximity to
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population centers;
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b) The projected size of the market to be served by a proposed airport;
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c) The ability of a proposed airport to generate sufficient revenue to cover costs
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of operation and maintenance;
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d) The availability of funding from both local and foreign sources for the
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construction of a new airport or expansion of an existing one;
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e) The proximity of other airports to a proposed new airport and the capability of
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such other airport to handle traffic projected to be handled by the new
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proposed airport;


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f) The government's public service obligations such as the government's duty to
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ensure the availability of air transport infrastructure for remote areas far from
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major population centers and that arc not otherwise easily accessible by
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transportation by land or sea;
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g) International Civil Aviation Organization best practices and recommendations
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concerning the development of airports; and
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h) Such other considerations as the Board, in the exercise of its reasonable
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discretion, may consider relevant or important.
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Sec. 11. Inunctions, Powers and Duties of the Generai Manager. - The
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General Manager shall be directly responsible to the Board, and shall have the
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following functions, powers and duties;
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a) To direct and supervise the management, operation and administration of the
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Authority, and its integral units including its buildings, runways, facilities and
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equipment, so as to provide international standards of service to airport
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users, and to ensure its financial stability in accordance with the programs,
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plans, policies, procedures and guidelines of the Board;
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b) To provide general supervision and overall coordination of all government
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agencies operating in the airports with respect to the allocation and use of
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building space and airport premises;
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c) To undertake researches, studies, investigations, and other activities related
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to the present operations and future development requirements of the
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airports, on his own initiative or upon instructions of the Board, and to submit
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comprehensive reports, and appropriate recommendations to the Board for its
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information and action;
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d) To appoint, transfer, suspend, remove or otherwise discipline any subordinate
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officer or employee of the Authority, subject to the approval of the Board and
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to engage, either on contractual basis or other suitable arrangements, the
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services of highly qualified professionals, experts, technical advisers or
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consulting firms and to determine their compensation or fees including other
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terms and conditions of employment as may be authorized by the Board; To
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enter into a memorandum of agreement/understanding, contracts or such
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other arrangements as may be feasible with such government agencies or


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private entities operating or providing services to the Authority to ensure 
proper coordination and integration of all activities in the Authority, subject to 
the approval of the Board or such laws, rules and regulations as are 
applicable in the exercise of such authority;
e) To establish and maintain a system, in coordination with the appropriate 
government offices and agencies, for the regular and prompt dissemination of 
financial, statistical and other relevant data within the Authority and to the 
Board;
f) 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;
g) To implement and enforce decisions, orders, rules and regulations issued, 
prescribed or adopted by the Board; and
h) To perform such other duties as the Board may delegate or assign, and such 
acts as may be necessary and proper to implement this Act.
Sec. 12. Capital. - The Authority shall have a capital of Fifty Billion Pesos (Php 
50,000,000,000.00) which shall be contributed by the National Government and to 
consist of:
a) The value of fixed assets (including airport facilities, runways and equipment) 
and such other properties, movable and immovable, which may be 
contributed by the National Government or transferred by it from any of its 
agencies, the valuation of which shall be determined jointly with the 
Department of Budget and Management (DBM) and the Commission on Audit 
(COA) on the date of such contribution or transfer after making due 
allowances for depreciation and other deductions taking into account the 
loans and other liabilities of the Authority at the time of the takeover of the 
assets and other properties;
b) The unexpended balances of appropriations in the current General 
Appropriations Act, and other laws in force upon approval hereof, pertaining 
to, held or used by, or available to the entities abolished and/ or whose 
powers, duties and responsibilities have been transferred to the Authority 
under this Act, including concerned government agencies;


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c) Any surplus income that may be derived from or shall accrue to the Authority 
upon its organization and its assumption of the assets and iiabilities of the 
entities abolished and/ or whose powers, duties and responsibilities have 
been transferred to the Authority under this Act, including concerned 
government agencies; and
d) Such amount as may be appropriated from time to time from the funds of the 
National Treasury not otherwise appropriated including any outlay from the 
infrastructure program of the National Government and as may be provided in 
the annual General Appropriations Act.
Sec. 13. Contribution to the Generai Fund for the Maintenance and Operation 
of Airports. - Within thirty (30) days after the close of each quarter, twenty per 
centum (20%) of the gross operating income, excluding payments for utilities of 
tenants and concessionaires and terminal fee, collections, shall be remitted to the 
General Fund in' the National Treasury to be used for the maintenance and 
operation of international and domestic airports in the country. Adjustments in the 
amount paid by the Authority to the National Treasury under this Section shall be 
made at the end of each year based on the audited financial statements of the 
Authority.
Sec. 14. Auditor. - The Chairman of the COA shall be the ex-officio Auditor of 
the Authority. For this purpose, he may appoint a representative who shall be the 
auditor of the Authority, together with the necessary personnel to assist said 
representative in the performance of his duties. The salary of the auditor and the 
number and salaries of said personnel shall be determined by the Chairman of the 
Commission on Audit subject to the rules and regulations of the Commission on 
Audit. Said salaries and all other expenses of maintaining the Auditor's Office shall 
be paid by the Authority.
The Auditor shall, as soon as practicable, but not later than three (3) months 
after the accounts have been submitted for audit, send an annual report to the 
Board. The Auditor may also submit such periodic or special reports as the Board 
may deem necessary.
Sec. 15. Legai Counsei. - The Government Corporate Counsel and/or the 
Solicitor General shall be the Legal Counsel of the Authority: Provided, That the


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Authority may establish its own legal department to handle the day- to-day legal 
matters affecting the affairs of the Authority.
Sec. 16. Annual Report. - The Board shall submit to the President of the 
Philippines through the DOTr, together with the audit report on the relevant 
accounts an annual report generally dealing with the activities and operations of the 
Authority.
Sec. 17. Applicability of Civil Service Laws. -The Authority and its officials and 
employees shall be subject to the Civil Service Law and its rules and regulations.
Sec. 18. Borrowing Power. - The Authority may, after consultation with the 
Secretary of Finance and with the approval of the President of the Philippines, as 
recommended by the Secretary of DOTr, raise funds, either from local or 
international sources, by way of loans, credits or securities, and other borrowing 
instruments, with the power to create pledges, mortgages and other voluntary liens 
or encumbrances on any of its assets or properties.
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 
ail the revenues and assets of the Authority and shall rank equally with one another, 
but shall have priority over any other claim or charge on the revenue and assets of 
the Authority; Provided, That this provision shall not be construed as a prohibition or 
restriction on the power of the Authority to create pledges, mortgages and other 
voluntary liens or encumbrances on any asset or property of the Authority. Except as 
expressly authorized by the President of the Philippines, the total outstanding 
indebtedness of the Authority in the principal amount, in local and foreign currency, 
shall not, at any given time, exceed the net worth of the Authority.
The President or his duly authorized representative, after consultation with 
the
Secretary of Finance, may guarantee, in the name and on behalf of the Republic of 
the Philippines, the payment of the loans or other indebtedness of the Authority up 
to the amount herein authorized.
Sec. 19. Increase or Decrease of Rates. - The Authority may increase or 
decrease the rates of the dues, charges, fees or assessments collectible by the 
Authority to protect the interest of the Government and provide a satisfactory return


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on the Authority's assets based on the principle of cost recovery at an aggregate 
level. The Authority may adjust the schedule of such rates so as to reflect the cost of 
facilities or services provided, or rendered. The Authority may periodically review all 
dues, charges, fees, or assessments collectible by the Authority, and shall make such 
adjustments to the schedule of rates as shall adequately reflect any increase in price 
levels and (in the case of concession rentals) of volume of traffic through the 
airports,
subject to the provisions of Batas Pambansa Big. 325, whenever practicable.
Sec. 20. Remedies for Non-Payment - If the owner or agent of any aircraft 
refuses or neglects to pay on demand any rate or charges made in pursuance of 
Section 19 hereof, the Authority may, after complying with the required legal 
formalities provided by law, shall have the power to impose lien on such aircraft 
equipment or furniture belonging to the owner or agent of said aircraft, until the 
amounts due have been paid.
Sec. 21. Fines and Penaities. - The Authority shall have the power to exact 
reasonable administrative fines in such specific amounts and for such specific 
violations arising out of the use of the airports, as shall be prescribed in rules and 
regulations which the Authority is hereby authorized to issue for the purpose, which 
amount of fine shall not be less than One Thousand Pesos (Php 1,000.00) nor more 
than Twenty Thousand Pesos (Php20,000.00), and shall be subject to review and 
increase every five (5) years.
Sec. 22. Competitive Tender. - The General Manager shall, as far as 
practicable, grant permits or concessions to trade or to engage in business within 
the areas controlled by the Authority to the highest bidder after a competitive public 
bidding; Provided, That the bidding requirements may be waived in the case of 
banks, branches of post office. National Telecommunications Commission, other 
government agencies in airline operations or where the fees, rates or assessments to 
be charged have been fixed by the Board.
The General Manager shall require such permittees or concessionaires to 
provide goods or services acceptable under international standards and at such 
prices similar to goods or services in Metropolitan Manila or airports in other


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countries: Provided, That such final awards of permits or concessions to successful
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bidders shall be subject to the approval of the Board.
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Sec. 23. Tax Exemptions. - The Authority shall be exempt from realty taxes
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imposed by the National Government or any of its political subdivisions, agencies
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and instrumentalities; Provided, That no tax exemption herein granted shall extend
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to any subsidiary which may be organized by the Authority.
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Sec. 24. Transfer of Power and Assets. - All powers, duties and rights vested
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by law and exercised by the CAAP relating to the control, supervision, construction,
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maintenance, operation, provision of services and facilities and the efficient
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functioning of all domestic and international airports in the country pursuant to
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Republic Act No. 9497, are hereby transferred to the Authority. All assets, real and
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personal properties, contracts, records and documents, funds and revenues owned
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by or vested in the different offices of CAAP in relation to the powers, duties and
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rights herein transferred shall also be transferred to the Authority.
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Sec. 25. 
Projects in Progress. - Ail ongoing projects relating 
to the
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construction of airport facilities shall be continued by the agency or agencies
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involved until completion. Thereafter, such projects shall be transferred to the
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Authority, in accordance with agreement among agencies concerned. Any
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disagreement, relating to such transfer, shall be submitted to the President of the
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Philippines for final decision.
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Sec. 26. 
Transfer of Liabiiities and Debts. - Upon the transfer 
to and
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acceptance by the Authority of the existing physical facilities, intangible assets and
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completed projects referred to in the preceding sections, all debts, liabilities, and
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obligations of the of the entities concerned and other government agencies in
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respect of such physical facilities, tangible assets and completed projects within the
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airports, shall likewise be assumed by the Authority.
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Sec. 27. Prohibited Acts and Penaities. - The General Manager, after due
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notice and hearing, is hereby authorized to impose the following fines and penalties
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for the commission of any of the acts hereunder prohibited:
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a) Any person who destroys or seriously damages the facilities of an airport or
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disrupts the services of an airport shall be subjected to imprisonment of one
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(1) year to three (3) years and/or a fine of not less than One hundred


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thousand pesos (Php 100,000.00) but not more than Five hundred thousand
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pesos (Php 500,000.00), or both, at the discretion of the court;
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b) An imprisonment of not iess than one (1) year but not more than three (3)
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years and / or a fine of not less than One hundred thousand pesos (Php
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100.000. 00) but not more than Five hundred thousand pesos (Php 500.000.
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00), at the discretion of the court, shall be imposed upon any person who
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shall interfere with air navigation, including but not limited to such acts as:
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1. Exhibiting within the Philippines any light or signal in such manner or
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place that it is likely to be mistaken for a true light or signal in
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connection with an airport or other navigational facility; or
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2. Knowingly removes, extinguishes, or interferes with the operation of
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any true light or signal.
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Sec. 28. Appropriations. - To provide for any extraordinary expenses of the
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Authority upon its organization, the unavailed portion of the excess of actual
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operating income over the estimated expenses of the entities abolished and/or
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whose powers, duties and responsibilities have been transferred to the Authority
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under this Act, if any, at the time of the passage of this Act is hereby appropriated
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for purposes that the Board may approve. This shall be considered as part of the
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capital under Section hereof
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Sec. 29. Repealing Clause. - All laws, executive orders, letters of instructions,
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rules and regulations, or provisions thereof, which are inconsistent with the
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provisions of this Act are hereby repealed, amended or modified accordingly.
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Sec. 30. Separability Clause. - The provisions of this Act are hereby declared
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separable. If any portion thereof shall be held invalid unconstitutional, such invalidity
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or unconstitutionality shall not affect the other provisions which shall remain in full
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force and effect.
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Sec. 31. Eifectivity Clause - This Act shall take effect within fifteen (15) after
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its complete publication in the Official Gazette or in at least two (2) newspapers of
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general circulation.
Approved,