NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
The Philippines has 85 airports nationwide, four of which are regular international airports and 
five are alternate international airports.  These airports are classified  under the new system 
of classification instituted by the Civil Aviation Authority of the Philippines (CAAP) into 
international airports, principal airports and community airports. 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. 
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. 
The regulations and functions of transport agencies influence the ability of airlines to connect 
destinations and compete in the global marketplace.  The multitude of regulatory agencies for 
each international airport has resulted into a variety of policies that are not necessarily 
consistent with one another. 
There is therefore a need to create a single independent agency that will consolidate the 
functions of planning, developing, maintaining of all airports, and regulating the privatized 
airports of CAAP. With this new entity, coordination failures experienced in the past years from 
having both the DOTr and CAAP provide separate budgets for airport development, 
maintenance and operations will be addressed. Further, this independent body will ensure an 
integrated guideline of operating international and domestic airport terminals in the country. 
With a single body regulating the operations of international and domestic airport terminals, 
we will be able to prevent conflicting policies and programs on airport maintenance, operation 
and development, as well as flight operations. 
 In view of the foregoing, the early passage of this bill is earnestly sought. 
  RUFUS B. RODRIGUEZ 
March 6, 2023
11:05 am
7420


NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
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”. 
SECTION 2.  Definition of Terms - For purposes of this Act, the following shall mean: 
a) “Authority” shall refer to the Philippine Airports Authority
b) “Aircraft” refers to 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.
SECTION 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 of Transportation and shall exercise the 
functions and powers previously belonging to the Civil Aviation Authority of the Philippines 
(CAAP) relating to the development, management, operations and maintenance of all existing 
government owned and controlled airports except those who by the act of Congress have 
been granted operating status as independent and autonomous airport authorities. It shall be 
headed by a General Manager as Chief Executive Officer of the Authority. The Authority may 
establish such offices, 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.  
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 RA 10149 and may be subject to the special audit upon the directive 
of the Commission on Audit; Provided, further, that no performance incentive, bonus, or 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. 
SECTION 4.  Purposes and Objectives. - The Authority shall have the following purposes and 
objectives: 
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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. 
 
SECTION 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 development policy that will periodically create 
improvement programs for all airports that will keep them updates with emerging 
operating technologies and modern management practices; 
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, including among others to: 
i. 
Comply with mandatory international safety standards and practices in 
management and operations of airports;  
ii. 
Operate the eighty two (82) airports in accordance with international standards 
and recommended practices set out in Annex 14, Volume 1 (Aerodrome Design 
and Operations of the International Civil Aviation Organization (ICAO)); 
iii. 
Implement the national civil aviation security programs describing the 
measures required by operators and entities for implementing the basic 
standards regarding aviation security that has been incorporated into the 
national civil aviation security programs; 
iv. 
Set up in each airport a quality control program to monitor compliance with the 
national aviation security program by each airport; 
v. 
Arrange for audit of the safety management system and the management of  
airport organizations; 
vi. 
Permit access to authorized CAAP officers for inspection and testing purposed 
related to ensuring safety at airports; 
vii. 
Make required notifications to the CAAP, ATC for the issuance of notices to 
airmen regarding any changes or the non-operations of certain facility, closure 
of certain parts of the aerodrome or existing risk or dangers to aircraft; 
viii. 
Conduct special or periodic inspections of all areas and existing airport facilities 
that are necessary for the safe operations of aircraft and passenger movements 
within terminals, between terminals, and between aprons and terminals; 
ix. 
Remove obstructions on the airports that are likely to be a hazard; and 
x. 
Erect warning signs if low flying or taxiing aircraft are likely to be hazardous to 
people or vehicles. 
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; 
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 
m) securities and other evidences of indebtedness of the government; 
n) 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: 
i. 
Aircraft movement and allocation of parking areas of aircraft on the ground, 
ii. 
Loading or unloading of aircraft; 
iii. 
Passenger handling and other services directed towards the care, convenience 
and security of passengers, visitors and other airport users; and 
iv. 
Sorting, weighing, measuring, warehousing or handling of baggage and goods. 
o) To prescribe and revise, from time to time as necessary, minimum safety standards 
for the operation of airport facilities in the Philippines; 
p) To perform such other acts and transact such other business, directly or indirectly as 
may be necessary, incidental or conducive to the attainment of the purposes and 
objectives of the Authority, including the adoption of necessary measures to remedy 
congestion in the airports; p) To determine and fix landing fees, parking space fees, 
tacking fees, royalties on sales and deliveries, direct or indirect to any aircraft for its 
use of civil aviation fuel, oil, and lubricants, spare parts, accessories and supplies, 
tools, and other royalties, fees or rentals for the use of any of the property under 
management and control;  
q) To exercise the power of eminent domain in the exercise of its purpose and function 
as determined under this Act;  
r) To cause the reclamation of any land needed for airport development; s) To supervise 
and control private security agencies operating on the airports;  
s) To enforce rules and regulations promulgated by the authority pursuant to law; and 
t) 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. 
 
SECTION 6. Police Authority. - The Authority shall 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; 
c) 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 law. 
 
SECTION 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 limitations as are reasonably necessary to assure safety in air transport. 
Unless the Authority determines that it would be contrary to public interest, such terms, 
conditions and limitations, 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. 
 
SECTION 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 Department of Transportation or his representative - Chairman; 
2. General Manager of the Authority - Vice-Chairman; 
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 Civil Aviation Authority of the Philippines; 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 with 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. 
 
No member of the Board shall have financial or pecuniary interest, directly or indirectly, 
in any business contract or transaction entered into by the Authority or in any privilege granted 
by it. Neither shall a member have any interest, financial or otherwise, in any undertaking or 
business with an inherent conflict of interest with the Authority. 
 
SECTION 9. Functions, Powers and Duties of the Board. - The Board shall have the following 
functions, powers and duties: 
a) To define and approve the programs, plans, policies, procedures and guidelines of the 
Authority for the development and operation of the airports within the context of the 
overall Government objectives, and to control the management, operation and 
administration of the Authority; 
b) To recommend to the President of the Philippines, for appointment, a General Manager 
of the Authority who shall be the Chief Executive Officer of the Authority;  
c) To approve the Authority's organizational and administrative structure, staffing pattern, 
operating and capital expenditures, and financial budgets, prepared in accordance with 
the corporate plan of the Authority, upon recommendation of the General Manager; 
and d) To establish a human resources management system based on merit and 
fitness and adopt a rational compensation and benefits scheme. 
 


SECTION 10. Development of New Airports  - The Board shall be responsible for the planning, 
development, construction, operation, maintenance or the expansion of airports. In planning 
and developing new airports, the Board shall consider :   
a) The suitability of a proposed site in terms of terrain and proximity to population centers; 
b) The projected size of the market to be served by a proposed airport; 
c) The ability of a proposed airport to generate sufficient revenue to cover costs of 
operation and maintenance; 
d) The availability of funding from both local and foreign sources for the construction of a 
new airport or expansion of an existing one; 
e) The proximity of other airports to a proposed new airport and the capability of such 
other airport to handle traffic projected to be handled by the new proposed airport; 
f) The government’s public service obligations such as the government’s duty to ensure 
the availability of air transport infrastructure for remote areas far from major population 
centers and that are not otherwise easily accessible by transportation by land or sea; 
g) International Civil Aviation Organization best practices and recommendations 
concerning the development of airports; and 
h) Such other considerations as the Board, in the exercise of its reasonable discretion, 
may consider relevant or important. 
 
SECTION 11.  Functions, Powers and Duties of the General Manager. - The General Manager 
shall be directly responsible to the Board, and shall have the following functions, powers and 
duties: 
a) To direct and supervise the management, operation and administration of the 
Authority, and its integral units including its buildings, runways, facilities and 
equipment, so as to provide international standards of service to airport users, and to 
ensure its financial stability in accordance with the programs, plans, policies, 
procedures and guidelines of the Board; 
b) To provide general supervision and overall coordination of all government agencies 
operating in the airports with respect to the allocation and use of building space and 
airport premises; 
c) To undertake researches, studies, investigations, and other activities related to the 
present operations and future development requirements of the airports, on his own 
initiative or upon instructions of the Board, and to submit comprehensive reports, and 
appropriate recommendations to the Board for its information and action; 
d) To appoint, transfer, suspend, remove or otherwise discipline any subordinate officer 
or employee of the Authority, subject to the approval of the Board and to engage, either 
on contractual basis or other suitable arrangements, the services of highly qualified 
professionals, experts, technical advisers or consulting firms and to determine their 
compensation or fees including other terms and conditions of employment as may be 
authorized by the Board; 
e) To enter into a memorandum of agreement/understanding, contracts or such other 
arrangements as may be feasible with such government agencies or 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; 
f) 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; 
g) 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; 
h) To implement and enforce decisions, orders, rules and regulations issued, prescribed 
or adopted by the Board; and, 
i) 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. 


 
SECTION 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 and the 
Commission on Audit 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; and 
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 liabilities 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. 
 
SECTION 13. Contribution to the General 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. 
 
SECTION 14. Auditor - The Chairman of the Commission on Audit 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. 
 
SECTION 15.  Legal Counsel. -  The Government Corporate Counsel and/or the Solicitor 
General shall be the Legal Counsel of the Authority: Provided, That the Authority may establish 
its own legal department to handle the day- to-day legal matters affecting the affairs of the 
Authority. 
 
SECTION 16. Annual Report. - The Board shall submit to the President of the Philippines 
through the Department of Transportation, together with the audit report on the relevant 
accounts, an annual report generally dealing with the activities and operations of the Authority. 
 


SECTION 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. 
 
SECTION 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 Transportation, 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 all 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. 
 
SECTION 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 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 Blg. 325,  whenever practicable. 
 
SECTION 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. 
 
SECTION 21.  Fines and Penalties. - 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 hundred 
(P100.00) nor shall be more than Twenty Thousand Pesos (P20,000.00).  
 
SECTION 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 countries: Provided, That such final 


awards of permits or concessions to successful bidders shall be subject to the approval of the 
Board. 
 
SECTION 23.  Tax Exemptions. - The Authority shall be exempt from realty taxes imposed by 
the National Government or any of its political subdivisions, agencies and instrumentalities: 
Provided, That no tax exemption herein granted shall extend to any subsidiary which may be 
organized by the Authority. 
 
SECTION 24.  Transfer of Power and Assets.-– All powers, duties and rights vested by law 
and exercised by the Civil Authority of the Philippines (CAAP) relating to the control, 
supervision, construction, maintenance, operation, provision of services and facilities and the 
efficient functioning of all domestic and international airports in the country pursuant to 
Republic Act No. 9497, are hereby transferred to the Authority. All assets, real and personal 
properties, contracts, records and documents, funds and revenues owned by or vested in the 
different offices of CAAP in relation to the powers, duties and rights herein transferred shall 
also be transferred to the Authority. 
 
SECTION 25.  Projects in Progress. — All ongoing projects relating to the construction of 
airport facilities shall be continued by the agency or agencies involved until completion. 
Thereafter, such projects shall be transferred to the Authority, in accordance with agreement 
among agencies concerned. Any disagreement, relating to such transfer, shall be submitted 
to the President of the Philippines for final decision. 
 
SECTION 26.  Transfer of Liabilities and Debts - Upon the transfer to and acceptance by the 
Authority of the existing physical facilities, intangible assets and completed projects referred 
to in the preceding sections, all debts, liabilities, and obligations of the of the entities concerned 
and other government agencies in respect of such physical facilities, tangible assets and 
completed projects within the airports, shall likewise be assumed by the Authority. 
 
SECTION 27. Prohibited Acts and Penalties  -  The General Manager, after due notice and 
hearing, is hereby authorized to imposed the following fines and penalties for the commission 
of any of the acts hereunder prohibited: 
a) Any person who destroys or seriously damages the facilities of an airport or disrupts 
the services of an airport shall be subjected to imprisonment of one (1) year to three 
(3) years and/or a fine of not less than One hundred thousand pesos (Php 100,000.00) 
but not more than Five hundred thousand pesos (Php 500,000.00 ), or both, at the 
discretion of the court; 
b) An imprisonment of not less than one (1) year but not more than three (3) years and / 
or a fine of not less than One hundred thousand pesos (Php 100,000.00) but not more 
than Five hundred thousand pesos (Php 500,000.00), at the discretion of the court, 
shall be imposed upon any person who shall interfere with air navigation, including but 
not limited to such acts as: 
1. Exhibiting within the Philippines any light or signal in such manner or place that 
it is likely to be mistaken for a true light or signal in connection with an airport 
or other navigational facility; or, 
2. Knowingly removes, extinguishes, or interferes with the operation of any true 
light or signal. 
 
SECTION 28. Appropriations. - To provide for any extraordinary expenses of the Authority 
upon its organization, the unavailed portion of the excess of actual operating income over the 
estimated expenses of the entities abolished and/or whose powers, duties and responsibilities 
have been transferred to the Authority under this Act, if any, at the time of the passage of this 
Act is hereby appropriated for purposes that the Board may approve. This shall be considered 
as part of the capital under Section 12 hereof. 
 


SECTION 29. TRANSITORY PROVISION. – All assets, real and personal properties, 
contracts, records and documents, funds and revenues owned by or vested in the authority in 
relation to the planning, development, control, supervision, construction, maintenance, 
operation, provision of services and facilities and the efficient functioning of the eighty two (82) 
airports shall be transferred to the authority. The CAAP shall no longer be responsible for the 
operation and service provision of these airports. 
 
All non-regulatory functions and the corresponding personnel of the CAAP Aerodrome 
Development and Management Service (ADMS) Division shall be transferred to the authority. 
ADMS shall continue to function as a non-regulatory division of the Authority providing the 
following services:  
a) Promulgate rules and regulations in complying with the parameters set by the authority 
governing the planning, development, maintenance, operations and improvement of 
the airports and to control and supervise the construction of any structure or the 
rendition of any service within the airport; 
b) Evaluate, monitor and process the contracts for concession in all national airports;  
c) Conduct training and inspections, evaluate and determine CFR capability, prepare 
POWS and monitor CFR operations nationwide; 
d) Evaluate height clearance for proposed and existing structures and obstructions within 
the vicinity of airports; 
e) Evaluate and recommend the issuance of notice to airmen;  
f) Conduct surveys at proposed airports and existing airports for development/ 
improvement; 
g) Conduct inspection, evaluation and preparation of POWS for the repair and 
improvement of all airports; 
h) Supervise the improvement, repair and maintenance of airport facilities;  
i) Conduct inspection and monitoring of ongoing and completed infrastructure projects 
and airport facilities in all airports;  
j) Provide technical assistance in the detailed engineering and implementation of foreign-
assisted projects; 
k) Identify the current and future requirements for each airport in the National Airport 
System and prepare corresponding budgetary costing for airport maintenance and 
development; 
l) Prepare detailed engineering of all airport maintenance and development projects and 
supervise their implementation; 
m) Prepare or update airport information and particulars for compliance with safety 
standards;  
n) Provide updates and monitor the aerodrome operations manual, aeronautical 
information publication, birdrstrike manual, safety management system manual, and 
airport emergency and preparedness program for all airports under the Authority; 
o) Recommend priority projects for airport maintenance and development;  
p) Initiate and in coordination with the DOTR the conduct of master planning studies in 
order to determine medium and long-term airport requirement including the 
identification of new airport development. 
 
All services provided by the ADMS that have overlapping functions for being partly regulatory 
in nature or oversight functions shall remain with CAAP.  
 
SECTION 30.  Repealing Clause. - All laws, executive orders, letters of instructions, rules and 
regulations, or provisions thereof, which are inconsistent with the provisions of this Act are 
hereby repealed, amended or modified accordingly. 
 
SECTION 31.  Separability Clause. - The provisions of this Act are hereby declared separable. 
If any portion thereof shall be held invalid unconstitutional, such such invalidity or 
unconstitutionality shall not affect the other provisions which shall remain in full force and 
effect. 


SECTION 32.  Effectivity Clause - This Act shall take effect within fifteen (15) after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
  
Approved,