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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Third Regular Session 
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S E N A T  
S. No 
Introduced by Senator S.R. OsmeAa 111 
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EXPLANATQRY NOTE 
The Executive Department has been granted the authority to direct the 
foreign or international relations of our country. This notwithstanding, it has come 
to the knowledge of the Senate that there may have been abuses of discretion on 
the part of certain line Departments of the Executive branch, particularly those 
offices or agencies dealing with the negotiations with foreign countries leading to 
the conclusion of the so-called Air Services Agreements or Air Transport 
Agreements. 
There are existing Air Services Agreements or Air Transport Agreements 
that have been entered into with foreign countries by the different line 
departments of the Executive branch involving political issues or changes of 
national policy and those involving international arrangements of a permanent 
character, matters which are truly subject of the plenary legislative powers of 
Congress. Under the Constitution, the mechanism to check the exercise by the 
Exeucutive of its treaty-making powers is to subject the same to the treaty- 
concurring powers of the Congress through a 2/3 vote of the members of the 
Senate. Unfortunately, it now appears that all of the Air Services Agreements or 
Air Transport Agreements have been classified unilaterally by the different line 
Departments of the Executive branch as mere bilateral executive agreements 
and declaring the same as solely within the jurisdiction or discretion of the 
Executive Department thus bypassing the Senate 
Further, it has likewise been reported that there may be Air Services 
Agreements or Air Transport Agreements which contain inequitable provisions by 
providing for better opportunities to foreign air carriers without corresponding 
opportunities for Philip pine air carriers. 
Such is the case of the existing Air Transport Agreement between the 
Governments of the Philippines and the United States, which was signed in 
1980. Based on a review of this agreement, the same contains iniquitous 
provisions which retards the growth of operations of the Philippine carriers. More 
importantly, the RP-US ATA effects a change in national policy, which is 
permanent in character considering that the agreement adopts the so-called 
Open Skies policy. It should.be stressed that under an Open. Skies policy, .the. 
designated air carriers of the United States are placed on equal footing with 
Philippine carriers because they are granted unrestricted or unlimited access to 
the aerial domain of the Philippines in terms of volume of traffic, frequency or 


regularity of services or the aircraft type used. The aerial domain of the 
Philippines is an integral part of the country’s natural resources and under the 
Philippine Constitution, unrestricted or unlimited access and enjoyment thereof is 
exclusively reserved to the Filipino’people. 
In addition thereto, the granting of unrestricted or unlimited access to US 
foreign air carriers to the country’s aerial domain effectively diminishes, if not 
absolutely render ineffective, the regulatory measures passed by Congress such 
as Republic Act No. 776, which created the Civil Aeronautics Board for the 
purpose of regulating the operation of all air carriers operating into and out of the 
Philippine territory. 
In view of the foregoing, there is now an urgent need to pass a law that 
shall provide for the establishment of a commission that shall represent the 
country in all negotiations with foreign countries leading to the conclusion of air 
agreements that shall be mandated to strictly comply with policy guidelines to be 
formulated by Congress. Such policy guidelines will have for its purpose the 
promotion and protection of the Philippine aviation industry in general, the 
Philippine designated air carriers in particular, and the promotion of trade, 
commerce and tourism through the conclusion of beneficial or advantageous air 
agreements. 
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Premises considered, approval of this bill is therefore, earnestly 
requested . 
k 
S E ~ G I O  
OSMENA 111 
Senator 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
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il $! 30 p 2 :fj(j 
Third Regular Session 
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OF THE PHILIPPINES 
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S E N A T E  
S. No 
introduced by Senator S.R. OsmeAa 111 
AN ACT 
I~STITUTIONALIZING THE AIR NEGOTIATING COMMISSION OF THE 
REPUBLIC OF THE PHILIPPINES AND DEFINING ITS POWERS AND 
RESPONSIBILITIES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled 
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CH‘APTER 1. - Title and Purpose 
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SECTION 
1. Title. - This act shall be known as the “Philippine Air 
Negotiating Commission Act of 2004. 
SEC. 2. Purpose. - The general purpose of this Act is to institutionalize 
the Air Negotiation Commission of the Republic of the Philippines and to define 
its powers, duties and responsibilities. 
CHAPTER II. - General Provisions 
SEC. 
3. Definitions. - The following definition shall control in the 
application and construction of this Act: 
(a) Air Services Agreement or Air Transport Agreement means any treaty 
or international agreement, whether bilateral or multilateral negotiated 
by and entered into by the Republic of the Philippines through the 
Commission with a foreign country or countries. 
(b) Commission means the Philippine Air Negotiating Commission. 


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(c) foreign Civil Aeronautical Authorities means the counterpart of the 
Commission in a foreign country with whom the Commission is 
negotiating. 
( d )  Philippine designated carrjer(s) means the duly designated and 
recognized flag carrier(s) of the Republic of the Philippines. 
SEC. 4. Declaration of Principles. - The State shall pursue an 
independent foreign policy. In its relations with other states, the paramount 
considerations shall be national sovereignty, territorial integrity, national interest, 
and the right of self determination. Thus, to achieve this end, it shall be the policy 
of the State: 
(a) To formulate policy guidelines to ensure the improvement and 
expansion of the development requirements of the Philippine aviation 
industry through the conclusion of Air Services Agreement of Air 
Transport Agreements with foreign countries; 
(b) To develop and maximize the utilization of the potential of the 
Philippine aviation industry; 
(c) To encourage and promote competitiveness in a level playing field'by' 
securing reciprocal rights, freedoms and equal opportunities for the 
, Philippine designated carriers; 
(d) To protect the Philippine aviation industry in general and the Philippine 
designated carriers in particular from unfair competition and practices; 
(e) To improve air service availability, quality and efficiency through the 
adoption of a progressive liberalization policy in the Philippine aviation 
industry. 
(9 To improve investment, trade and tourism in the country through the 
expansion and strengthening of the Philippine aviation industry. 
CHAPTER 111. - PHILIPPINE AIR NEGOTIATION COMMISSION 
Section 5. Philippine Air Negotiating Commission. - (a) There is hereby 
created a Philippine Air Negotiating Commission, hereinafter referred to as the 


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Commission, which shall represent the Republic of the Philippines in all 
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negotiations or consultation talks with Foreign Civil Aeronautical Authorities 
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leading to the conclusion of Air Services Agreements or Air Transportation 
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Agreements and succeeding negotiations or consultation talks regarding the re- 
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negotiation, renewal or extension of these Air Services Agreements or Air 
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Transport Agreements. 
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(b) The Commission shall be composed of the Secretary of the 
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Department of Foreign Affairs as ex officio Chairman; the Secretary of the 
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Department of Transportation and Communications as ex'officio Vice-chairman; 
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the Secretary of Department of Tourism and the Secretary of the Department of 
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Trade and Industry as ex officio members; a representative of the Civil 
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Aeronautics Board as ex officio members; and representatives from the three 
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largest Philippine designated carrier(s) as members. 
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Section. 6. Policy Guidelines for Negotiations or Consultation Talks. - In 
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negotiating or consulting with foreign Civil Aeronautical Authorities with the end in 
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view of concluding an Air Service Agreement or Air Transport Agreement, the 
Commission shall take into consideration the following policy guidelines: 
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(a) Air Services Agreements or Air Transport Agreements should be in 
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consonance with the rights of the Republic of the Philippines as a 
sovereign state to exercise its political prerogatives. 
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(b) The Air Services Agreement or Air Transport Agreements should 
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provide for reciprocal rights, freedoms and privileges. Reciprocity 
should not be strictly interpreted to mean the exchange of air traffic 
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rights on a one-to-one basis. Rather, reciprocity shall be interpreted to 
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mean the exchange of equivalent rights, privileges and freedoms with 
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the end in view of providing equality of opportunities particularly for 
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both the Philippine designated carriers and foreign designated 
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carriers. 


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(c) The national interest in general shall be taken into consideration which 
includes value for the Philippines in terms of promoting trade, foreign 
investments and toUrism; Provided, however, that the negotiations ‘or 
consultations talks leading to the conclusion of 
Air Services 
Agreements or Air Transport Agreements shall deal only with the 
exchange of air traffic rights, freedoms and routes. 
Section 7. Duties and Responsibilities of the Commission. - (a) Within a 
period of six (6) months from the effectivity of this Act, the Commission, in 
coordination with the Congressional Oversight Committee, shall review all 
existing Air Services Agreements or Air Transport Agreements concluded by the 
Republic of the Philippines with foreign countries with the end in view of making 
them more responsive to the developmental requirements of the Philippine 
aviation industry. 
(b) The Commission shall immediately inform the Congressional Oversight 
Committee of any and all Air Services Agreements or Air Transport Agreements 
concluded with foreign Civil Aeronautical Authorities. 
(c) The Commission, in coordination with the Congressional Oversight 
Committee, shall recommend to the President of the Republic of the Philippines 
the transmittal to the Philippine Senate of the ratification papers covering Air 
Services Agreements or Air Transport Agreements involving political issues or 
changes of national policy and those involving international arrangements of a 
permanent character for the concurrence of the Senate. 
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Section 8. Oversight Committee. - There is hereby created a 
Congressional Oversight Committee to monitor and oversee the implementation 
of the provisions of this Act. The Committee shall be composed of ten ( I O )  
members with the chairmen of 
the Committees on Foreign Relations, 
Committees on Public Services and Committees on Transportation and 
Communications of the Senate and the House of Representatives and six (6) 
additional members from each House, to be designated by the Senate President 


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and the Speaker of the House of Representative, respectively. The minority shall 
be entitled to pro rata representation but shall have at least (2) representatives in 
the Committee. 
Section 9. Separability of Provisions. - If any provision of this Act or the 
application of such provision to any person or circumstances is declared 
unconstitutional, the remainder of €he Act or the application of such provision. to . 
other persons or circumstances shall not affected by such declaration. 
Section I O .  Repealing Clause. - All laws, decrees, executive orders, 
proclamations, rules and regulations, and issuances, or parts thereof which are 
inconsistent with the provisions of this Act, are hereby repealed or modified 
accordingly . 
Section 11. Effecfivify. - This Act shall take effect fifteen (15) days 
following its publication in the Official Gazette or in two (2) newspapers of 
general circulation. 
Approved, 
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