NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S, B. No. 1003
1^.
of tijc
•22 AUG "3 All 22
RliCElVHD!; r
Introduced by Senator SONNY ANGARA
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 couniry 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 COVID-19 
pandemic has greatly affected the aviation industry with a whopping losses worth 
over $200 billion for the years 2020-2022.1 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 fourteen 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
https://www.iata.org/en/pressroom/2021-releases/2021-10-04-01/


Transport Management on 14 September 2020 government and public authorities 
piay 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 
empioyees/,; 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


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
)
SENATE
S. B. No. 1003
§3ftiasr
of ti;C
*22 AUG -3 All :23
RECEIVED &V:
Introduced by Senator SONNY ANGARA
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:
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SECTION 1. Section 2 of Republic Act No. 9497, otherwise known as the Civil
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Aviation Authority Act of 2008, is hereby amended to read as follows:
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"SEC. 2. Declaration of Policy. - It is hereby declared the policy of the
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State to provide safe and efficient air transport and regulatory
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services in the Philippines by providing for the creation of a civil
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aviation authority with jurisdiction over the restructuring of the civil
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aviation system, the promotion, development and regulation of the
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technical, operational, safety, and aviation security functions under
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the civil aviation authority IN FURTHERANCE OF THE
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OBLIGATIONS OF THE PHILIPPINES TO THE
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INTERNATIONAL COMMUNITY AS CONTRACTING STATE TO
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THE CONVENTION ON INTERNATIONAL CIVIL AVIATION,
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COMMONLY KNOWN AS THE CHICAGO CONVENTION. THE
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AUTHORITY SHALL COORDINATE WITH OTHER
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GOVERNMENT AGENCIES IN ADVANCING AVIATION
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SECURITY IN THE PHILIPPINES.
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TOWARDS THIS END, THE GOVERNMENT SHALL
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EXTEND ALL MEANS AND MECHANISMS NECESSARY FOR
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THE AUTHORITY TO FULFILL ITS VITAL TASK OF


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PROMOTING AND ENSURING SAFE AND EFFICIENT AIR
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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
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as 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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w03) 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
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follows:
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"(EEE) landing AND TAKEOFF FEES - refers to [all charges-^er-
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thc-uGG of-any—landing—strip—or runway by any aircraft landing or
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taking off -at-an aorodromo] FEES CHARGED FOR THE USE OF
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AIRCRAFT OF THE AIRPORT FACILITIES AND SERVICES FOR
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LANDING AND TAKE-OFF;"


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"(FFF) [Tefffiiftal] PARKING Fees - refers to [chargcs--fQr-parking 
at or- near the ramp/-tGrminal-arcar-or-baHclin§-/-for-purpoGG5 of
loading—or—unloading—passengers—and/or—cargo] ALL FEES 
CHARGED TO THE AIRCRAFT FOR THE USE OF FACILITIES 
AND SERVICES FOR 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


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(a] [€ste^i5l:fflW}^6f-A(jthQrity--Headee}-by a] APPOINTMENT AND
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TERM OF OFFICE Director General - The Authority shall be headed
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by a Director General of Civil Aviation, referred to in this Act as the
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"Director General/' who [sba-lf-be-appointed by the President of the
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PhifippineS' -and] shall be responsible for all NON-ECONOMIC
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ASPECTS OF civil aviation in the Philippines and the administration
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Of this Act. NOTWITHSTANDING THE PROVISIONS OF
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REPUBLIC ACT 10149, [T]the Director General shall be appointed
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BY THE PRESIDENT OF THE PHILIPPINES based on the
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qualifications herein provided and shall have a [tervufe] TERM of
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office for a period of [four-(-4)] EIGHT (8) YEARS years [. His
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appointment may be extended for another non-extendible term of
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four (4) years] and shall only be removed for cause in accordance
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with the rules and regulations prescribed by the Civil Service
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Commission. IN CASE THE DIRECTOR GENERAL FAILS TO
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COMPLETE HIS TERM, HIS SUCCESSOR SHALL ONLY SERVE
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FOR THE UNEXPIRED PORTION OF THE TERM OF HIS
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PREDECESSOR.
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THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT
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THE DIRECTOR GENERAL FROM A SHORTLIST OF THREE
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NOMINEES PREPARED BY THE BOARD OF DIRECTORS
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CONSTITUTED kS A SEARCH COMMITTEE COMPOSED OF
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FIVE MEMBERS THEREOF WHO SHALL RECEIVE AND
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EVALUATE NOMINATIONS. NO INCUMBENT DIRECTOR
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GENERAL SHALL BE A MEMBER OF THE SEARCH
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COMMITTEE."
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XXX"
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SEC. 5. Section 5 of the same Act is hereby amended to read as follows:
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"SEC. 5. Composition of the Board Members. — The corporate
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powers of the Authority shall be vested in a board, which is
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composed of [seven (7)] NINE (9) members:


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(a) The Secretary of the Department of Transportation [and 
Communications] shall act as chairman ex officio;
(b) The Director General of Civil Aviation (DGCA) shall automatically 
be the vice chairman of the Board;
(c) The Secretary of Finance;
(d) The Secretary of Foreign Affairs;
(e) The Secretary of Justice;
(f) The Secretary of the Interior and Local Government; [and]
(g) The Secretat^/ 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 dim] 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 [feuf-(4)] SIX (6) 
members of the Board shall constitute a quorum and the majority


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vote of [throG (3)] FOUR (4) members in a meeting where a 
quorum is present shall be necessary for the adoption of any rule, 
ruling, order, resoiution, 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-dcsignatcd] as the Director General unless he is a 
Filipino citizen, at least thirty-five (35) years of age, of good morai 
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-{-4)] 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
Traia5f)ertation Office (ATO>-shall be given preference in the filling up
of plantilla-positions c-feated-in-the—Authority—subject- to -existing
etvH-service-fuies-and-rcgulations.]
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


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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/ievy of any and all such fees, charges, dues, assessments 
and fines it is empowered to collect/levy under this Act shall be used 
solely to fund the operations of the Authority. FOR THIS 
PURPOSES, THE AUTHORITY SHALL BE EXEMPT FROM THE 
PROVISIONS OF REPUBLIC ACT No. 7656 OR THE DIVIDEND 
LAW.
The utilization of any funds coming from the collection and/or levy of 
the Authority shall be 
subject to 
the 
examination of the
Congressional Oversight Committee (COCAAP).
SEC. 11. Section 18 of the same Act is hereby amended to read as follows: 
"SEC. 18. Compensation and Other Emoluments of Authority 
Personnel. - Within six (6) months from the effectivity of this Act, 
the Board shall determine the new schedule of salaries of the 
employees of the Authority subject to the compliance with the 
existing compensation laws, CONSISTENT WITH THE 
PROVISIONS UNDER SECTION 5 HEREOF, AND REVISE THE 
SAME FROM TIME TO TIME AS IT MAY DEEM NECESSARY [i 
Provided, ITrat-t-he Board shall dctcrminG and-fi-x-t-hc-compensation,-
and-fringe benefits-of-employecs holding technical positions-that-are
not common to -thc-othcr agcncicG of the government whieh-shall-be
specified in-t-he Implementi-n§-RuleG and-Regulations]. THE BOARD 
SHALL PROVIDE ANNUAL REVIEWS OR INCREASES BASED 
ON PRODUCTIVITY."
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; 
MERIT SYSTEM-THE BOARD SHALL ESTABLISH A 
HUMAN RESOURCES MANAGEMENT SYSTEM, WHICH 
SHALL PROMOT> PROFESSIONALISM AT ALL LEVELS OF THE 
AUTHORITY IN ACCORDANCE WITH SOUND PRINCIPLES OF 
MANAGEMENT.
A PROGRESSIVE COMPENSATION STRUCTURE, BASED 
ON, AND EQUIVALENT TO THE STANDARDS OF THE 
AVIATION INDUSTRY, AS PRACTICED AND OBSERVED IN 
THE INTERNATIONAL AVIATION INDUSTRIES, INCLUDING 
THE STANDARDS SET BY THE INTERNATIONAL CIVIL 
AVIATION ORGANIZATION, SHALL BE ADOPTED AS AN 
INTEGRAL COMPONENT OF THE AUTHORITY'S HUMAN 
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


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AND SUCH OTHER PERSONS OF THE AUTHORITY WHO MAY
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BE AUTHORIZED TO UNDERTAKE OR PERFORM REGULAR
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AND FREQUENT FLIGHTS IN THE PERFORMANCE OF THEIR
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DUTIES, MAY BE INCREASED BY THE AUTHORITY ONLY IF
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IT HAS SUFFICIENT BUDGET FOR THE SAME AND IF IT WILL
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SERVE THE INTEREST OF THE AVIATION INDUSTRY AS A
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WHOLE."
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SEC. 14. A new section 18-C is hereby inserted to read as follows:
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"SEC. 18-e. EMPLOYMENT OF PERSONS FOR CONFIDENTIAL,
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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 Authorit/ 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) X X x;
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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
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AS 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) X X x;
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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


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Act, establish a human resources management system based on 
merit and fitness, CREATE, TRANSFER, RE-ALIGN AND 
ABOLISH OFFICES AND POSITIONS, and adopt a rational 
compensation and benefits scheme EQUIVALENT TO THE 
STANDARDS SET BY THE INTERNATIONAL CIVIL AVIATION 
ORGANIZATION (ICAO);
[(e)—Exercise appellate powers on any dGcisions, findings and-rulings
af-rhe—Difect-aiMjefiefal; to issue subpoena ad testificandum or
subpoeno-duces tecum requiring-the attendance and testimony of
witnesses in-any matter-or inquiry pending before the Board...and
require the production of books,-papers, contracts, agreements and
alf-ethef.decb.n^^r.t-s-submitted-fer--purposcs of this section to be
under oath and verified by the-person in custody thereof as-te-the
truth and correctness of data appearing in such- books, papers,
tar-iffs, contracts, agreements and-all other documents;]
[(f)-Exercise appc!l-ate-pewers to order-the-taking of depositions in 
any-procGGdingT-eMnvGstigatien—-pending-beforG-thG Board at any
stage of such proceeding or investigation; j
XXX
[(})—Promulgate- rulee-and-regulations as may be-necessary in the
interest-of-sa-fety in-----air commerce--pertaln-ing--tQ--the issuance of
the airman's certificate including the licensing of-operating—and
mechanical personnel, type certificate for-aircraft, aircraft engines,
propellers and appliances, airworthiness certificates, air—earrier 
operating-certificates, air ageney-eertificates, navigation -faeility--and
aerodrome certificatesr-air - traffic routes; radio and-aGronautlcal
telecommunications and—air—navigation—aMs;—aircraft..aee-ident
inquiries; aerodromes, both public and private-owned; construction
of-obst-ructiens-to-aerodromes; height of-buildings; antennae-and
other-edifices; registration of aircrafts; search and rescue; facilitation
of-air-transportst operations of------- aircrafts, both-for domestie-and
international>"lncluding scheduled and non-schcduled; meteorology
10


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in rdation-to civil aviation; rules-of the air; air traffic scrvicGG; rules
for-prevention of collision of aircrafts; idcntificotion- of aircraft; rules
for-safe 
—ffight; and such other rules and-regoiat-ions,
standards-r-gevefFHog-ot-her practices, methods and/or procedures as
the-9irector Generat-may find necessary and appropriate-to-provide
adequately for safetv^-regularity and effieiency-in air commerce and
XXX
[(m) Adopt--a system for the-registration of aircraft as hereinafter
provided;]
XXX
(q) [14pofi-te-ewn-iottiative or thc-feeommendation of the-Director
Gener-ai-Qr an application of a private person, grant-exemption-from
the-req-uirements of observing---------rules-- or regutetions—issued—in
aecordance-wit-h this Act: Provided, That said-grant-of—exemption
fS-net-pfejud4€ial-ta-f-H§ht -safety-;] 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
earrier-and the pubiie-for-the -safe-transport of goods-aed-materia Is
by air pursuant to international--------standards or Annexes to the
Ghieago 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
11


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(s) [-iR-cQQrdination with the appropriate-government ageney-tasked
te-pf0vidG-airport security, shall:
flr)-Pfese74re-reaGOnabIc regulation'requiring that ail-pa-sseogers
a-Rd-all property intended to be carried in the aircraft cabin in
oemfnercial-efi^tranGport.be.screened..by-weapon-detecting
procedure or facilities-empIeyed-or-oper-ated-dy-onaployees-or
a-gents - of Lho-air-operator -or- f-orelgn-aif-eperator-pr-ieF-to
beam i n g-tlac-a i rcr-aft for- such -tr-a nGportatlont
(2) -PrGGcribc—suob—other—reasonable—rules—and—regulations
requiring-sueh-partics;-methods—and—procGdurcG as..the
Otreetor-General may find necGGsary-to protect- persons and
preperty aboard aircraft■operating-in-eommerc-ial air transport
againGt-aets-of-crlminal-^^iolencG and aircraft piracy; and
(3) To-the-extent practicable,- require-unlform-procedures for the
Inspection, detention/and search.Qf-per-sons- and-property in
doi-neste—commercial—air—transport—and—international
eommerclal-air- transport to assure-theiF-safety and to assure
that they-will-rec-eive-eourteouG and efficient-treatment-by-air
operators and their agents 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:
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"SEC. 25. Issuance of Rules and Regulations. The [Board/ in 
eeftselt-ation -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: 
"SEC. 26. Setting of Charges and Fees. - The Board, after 
consultation with the Director General, and after public hearing, shall 
determine, fix, impose, collect or receive reasonable charges, fees, 
dues or assessments in respect of aviation certificates, licenses and 
all other authorizations or permissions authorized to be issued under 
this Act and all services performed by the Authority BASED ON THE 
PRINCIPLE OF COST RECOVERY AT AN AGGREGATE LEVEL.
All charges and fees shall be formally promulgated in accordance 
with the requirements of the Administrative Code of the Philippines 
or any amendment or successor thereto. [Pending the promulgation 
of such new-eehedule-ef-eh-afgeG-and fee5,-the-eurrcnt charges- and 
feeo-of the ATO shall continue 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 [Beard 
mav^-authORz-e -t-he] 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 [afl4—other] TO IMPLEMENT THE
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REGULATORY issuances of the ICAO. [Pending the promulgation of 
such...new -putes- ef—procedurGG and-.practice, current- rules of
procedurcs-dfid practices of the ATQ shall- continue to apply.]"
SEC. 20. Section 28 of the same Act is hereby amended to read as follows: 
"SEC. 28. Appellate [Powers] JURISDICTION - [TheBoard/on an 
appeal..properly ■ taken by an interested party—from-a..decision/
jodgment-of-er-der- ef-the Director Gcneralv shall have thepewee-to-:-
—(a)—Review, confirm, modifyr revise, amend or-reverse/ as the
c-ase may -bej-decisions, judgments and/or- orders - of- the-Director
Generalj
—fb)—Gc^ffly^T-H'emltr 
incroosG or compromfeeT—as—t-he
case may be, finesH-mposed-by the Director General pursuant with
the provisions of this Act; and
—(e)—Review-,-conflrm>-.modify, reviscT-amend-er reverse, as the
ease-may beyHfflpositions-by-t-he- Director General of liens on personal
and-real pr-eperties.of entities, pGr5ons,-eorp0Fatiens or partner-ships
in default, or those who have failed to------- perf-orm-their-obligations
pursuant - to rules and--regulations promulgated-undeP' this-Act,- or
t-hose-who ■ shall have-failed-to-pay- thG fines or other—pecuniary
penalties- for violation thereof.
—In no case that the—Director -General-shall participate in the
bearing and adjudication-------of an appealed-ease-before-the-Board
where the subject of-appeaHs a judgmenb-emdeeisior>-rendered-by
nis-effice. In-such case,-Ht-reguires four (4) conctirring-votes-of-4-he
members of the Board who actively participated in-the deliberation- of
the-appealed case-before the-judgment-or-deeisfon-of-the Director
General-can be medthed-or-r-eversed.]
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:
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"SEC. 40. Creation of Flight Standards Inspectorate Service. - (a) The
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[Beafdy'Other-thaiT the offices it shall create in furtherance-of--this
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Act/..shall—establish a permanent- offiee-k-nown- as the-] Flight
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Standards Inspectorate Service (FSIS) {that] will assist the Director
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General in carrying out the responsibilities of his office for
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certification and ongoing inspections of aircraft, airmen and air
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operators.
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The FSIS shall perform the following functions:
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(1) Airworthiness inspection;
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(2) Flight operations inspection and evaluation; and
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(3) Personnel licensing."
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[funthermefeT—the-Board shall-ercatcr'but not limited to, the
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following offices which will—provide support -te-the -functions of the
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FSIS, namely-:-Aircraft RcgistrQtion,-Aircraft---------Engineering—and
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Standards—-Airmen Examination' Board and Office of the..Right
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Surgeon.]
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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 [>- ■ after c-em-plying- with- the—reej-uired—legaI - -formalities
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provided by law,] shall have the power to impose lien on AND
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DETAIN aircraft 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, tlie 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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