Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE
In the Republic of the Philippines, the Civil Aeronautics Board (CAB) is the 
agency of the government mandated to regulate the economic aspect of air 
transportation, and shall have the general supervision, control and jurisdiction 
over air carriers, general sales agents, cargo sales agents, and air freight 
forwarders as well as their property, property rights, equipment, facilities, and 
franchise (R.A. No. 776, as amended by P.D. 1462). CAB is an attached agency 
of the Department of Transportation (DOTr). 
This House Bill seeks to provide Developmental Funding to the (CAB) to ensure 
that the state fulfills its commitments in the exercise of its regulatory powers, it 
is authorized to issue Certificates of Public Convenience and Necessity (CPCN) 
to domestic carriers, Foreign Air Carrier's Permit (FACP) to foreign carriers, and 
Letters of Authority to airfreight forwarders, general sales agents, cargo sales 
agents who are fit, willing, and able to perform services as required by public 
convenience and necessity. CAB shall likewise perform quasi-judicial functions. 
Thus, the early passage of this bill is earnestly requested. 
MICHAEL L. ROMERO 
September 26, 2022
2:35 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    AN ACT 
PROVIDING FOR DEVELOPMENTAL FUNDING FOR THE CIVIL 
AEROANAUTICS ADMINISTRATION OF THE PHILIPPINES, TO 
FOSTER UPGRADES IN ITS SYSTEM AND REGULATION 
PROCEDURES PRESCRIBED FOR CIVIL AERONAUTICS 
STANDARDS, 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 “Civil 
Aeronautics Development Act of 2022”. 
SECTION 
2. 
DECLARATION OF POLICY –  It shall hereby be a declared 
policy of the State to exercise and perform its powers and functions under this 
Act, the Civil Aeronautics Board (CAB)and the Civil Aeronautics Administration 
shall consider the following among other things, as being in the public interest, 
and in accordance with the public convenience and necessity: 
a)
The development and utilization of the air
potential of the Philippines; 
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b) 
The   encouragement and development of an air 
transportation system properly adapted to the present and 
future of foreign and domestic commerce of the Philippines, of 
the Postal Service, and of the National Defense; 
c) 
The regulation of air transportation in such 
manner as to recognize and preserve the inherent advantages 
of, assure the highest degree of safety in and foster sound 
economic conditions in such transportation, and to improve 
the relations between, and coordinate transportation by air 
carriers; 
d) 
The promotion of adequate, economical and 
efficient service by air carriers at reasonable charges without 
unjust discriminations, undue preferences or advantages, or 
unfair or destructive competitive practices. 
e) 
Competition between air carriers to the extent 
necessary to assure the sound development of an air 
transportation system properly adapted to the need of the 
foreign and domestic commerce of the Philippines, of the 
Postal Service, and of the National Defense. 
f) 
To promote safety of flight in air commerce in the 
Philippines; and 
g) 
The encouragement and development of civil 
aeronautics. 
SECTION 
3. 
DEVELOPMENTAL FUND – The amount of One Billion 
Pesos (Php 1,000,000,000.00) for the operation and administration of the CAB 
shall be chargeable against funds for the purpose and other sources 
recommended by the Department of Budget and Management (DBM). Thereafter, 


appropriations for the CAB shall be included in the budget proposals under the 
Department of Transportation (DOTr). 
Thereafter, the amount needed for the continued implementation of the 
development program, shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
4. 
CAB DEVELOPMENTAL FUND – There is hereby 
created the CAB Developmental Fund to be used exclusively for the CAB 
Developmental Programs. 
The CAB Developmental Fund shall be administered by the Secretary of the DOTr 
in accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
SECTION 
5. 
PROGRESS REPORT – The Secretary of the DOTr shall 
prepare an annual report on the status of the implementation of the CAB 
Developmental Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee on Energy of the Senate and the House 
of Representatives. 
SECTION 
6. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of two (2) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That CAB shall continue develop, modernize and 
constantly update its operational capabilities to keep pace with best global 
practices. 


SECTION 
7. 
POWERS AND FUNCTIONS. – The CAB shall continue to 
exercise and uphold the following: 
(A) Except as otherwise provided herein, the Board shall have the power to 
regulate the economic aspect of air transportation, and shall have the 
general supervision and regulation of, the jurisdiction and control over, air 
carriers, general sales agents, cargo sales agents, and airfreight forwarders 
as well as their property, property rights, equipment, facilities, and 
franchise, in so far as may be necessary for the purpose of carrying out 
the provisions of this Act. 
(B) 
The Board may perform such acts, conduct such investigations, 
issue and amend such orders, and make and amend such general and special 
rules, regulations, and procedures as it shall deem necessary to carry out the 
provisions of this Act. 
(C) 
The Board shall have the following specific powers and duties: 
(1) 
In accordance with the provisions of Chapter 4 of this 
Act, to issue, deny, amend, revise, alter, modify, cancel, suspend, or 
revoke, in whole or in part, upon petition or complaint, or upon its 
own initiative, any temporary operating permit or Certificate of 
Public Convenience and Necessity; Provided, however, That in the 
case of foreign air carriers, the permit shall be issued with the 
approval of the President of the Republic of the Philippines. 
(2) 
To fix and determine reasonable individual, joint or 
special rates, charges or fares, which an air carrier may demand, 
collect or receive for any service in connection with air commerce.  
The Board may adopt any original, amended, or new individual, joint 
or special rates, charges or fares proposed by an air carrier if the 
proposed individual, joint, or special rates, charges for fares are not 
unduly preferential or unduly discriminatory or unreasonable.  The 
burden of proof to show that the proposed individual, joint or special 
rates, charges or fares are just and reasonable shall be upon the air 
carrier proposing the same. 
In fixing rates, charges, fares under the provisions of this Act, the Board 
shall take into consideration, among other factors: 
a) 
The effect of such rates upon the movement of traffic; 
b) 
The need in the public interest of adequate and        
efficient transportation of persons and property by air carriers at the lowest cost 
consistent with the furnishing of such service. 
c) 
Such standards respecting the character and quality of service to be 
rendered by air carriers as may be prescribed by or pursuant to law; 


d) 
The inherent advantages of transportation by aircraft; and 
e) 
The need of each air carrier for revenues sufficient to enable such 
air carrier, under honest, economical, and efficient management, to provide 
adequate and efficient air carrier service. 
(3) 
To authorize any type of charters whether domestic or 
international and special air services or flight under such terms and 
conditions 
as 
in 
its 
judgment 
public 
interest 
requires.  
Notwithstanding the existence of bilateral air agreement, the CAB is 
authorized to grant any foreign airline increase in frequencies 
and/or capacities on international routes when in its judgment the 
national interest requires it, provided that the utilization of the 
increase frequencies and capacities is not more than thirty days.  All 
grants of frequencies and/or capacities shall be subject to the 
approval of the President. 
(4) 
To approve or disapprove increase and/or decrease of 
capital, lease, purchase, sales of aircraft of air carrier engaged in air 
commerce; consolidation, merger, purchase, lease and acquisition 
and control of operating contracts between domestic foreign air 
carriers, or between domestic air carriers or any person engaged in 
any phase of aeronautics. 
(5) 
To inquire into the management of the business of any 
air carrier and, to the extent reasonably necessary for such inquiry, 
to obtain from such carrier, and from any person controlling, or 
controlled by, or under common control with, such air carrier, full 
and complete reports and other information.  Such reports shall be 
under oath whenever the Board so requires. 
(6) 
To require annual, monthly, periodical, and special 
reports from any air carrier, to prescribe the manner and form in 
which such reports shall be made, and to    require from any air 
carrier specific answers to all questions upon which the Board may 
deem information to be necessary.  Such reports shall be under oath 
whenever the Board so requires.  The Board may also require any 
air carrier to file with it any contract, agreement, understanding or 
arrangement, or a true copy thereof, between such air carrier and 
any other carrier or person, in relation to any traffic affected by the 
provisions of this Act. 
(7) 
To  prescribe  the  forms  of  any and all accounts, 
records, and memoranda of the movement of traffic, as well as of the 
receipts and expenditures of money, and the length of times such  
accounts,  records  and  memoranda shall be preserved:  Provided, 
that any  air  carrier  may keep additional accounts, records, or 
memoranda if they do not impair the integrity of the accounts, 
records, or memoranda prescribed or approved by the Board and do 
not constitute an undue financial burden on such air carrier. 


(8) 
To require each officer and director of any air carrier to 
transmit a report describing the shares of stock with any persons 
engaged in any phase or other interest held by such air carrier of 
aeronautics, and the holding of the stock in and control of, other   
persons engaged in any phase of aeronautics. 
(D) 
The Board may investigate, upon complaint or upon its own 
initiative whether any individual or air carrier, domestic or foreign, is violating 
any provision of this Act, or the rules and regulations issued thereunder, and 
shall take such action consistent with the provisions of this Act, as may be 
necessary to prevent further violation of such provision, or rules and regulations 
so issued. 
(E) 
The Board may issue subpoena or subpoena duces tecum require 
the      attendance and testimony of witness in any matter or inquiry  pending  
before  the  Board or  its  duly authorized representatives, and require the 
production of books, papers,     tariffs, contracts, agreements and all other 
documents submitted for purposes of this      section to be under oath and 
verified by the person in custody thereof as to the truth and correctness of data 
appearing in such books, papers, tariffs, contracts, agreements and all other 
documents. 
(F) 
The Board may review, revise, reverse, modify or affirm on appeal 
any administrative decision or order of the Administrator on matter pertaining 
to: 
(1) 
Grounding of airmen and aircraft or 
(2) 
Revocation of any certificate or the denial by the 
Administrator of issuance of any certificate; or 
(3) 
Imposition of civil penalty of fine in connection with the 
violation of any provision of this Act or rules and regulations issued 
thereunder. 
(G) 
The Board shall have the power, either on its own initiative or upon 
review on appeal from an order or decision of the Administrator, to determine 
whether to impose, remit, mitigate, increase, or compromise, such fines and civil 
penalties as the case may be. 
(H) 
(1) 
The Civil Aeronautics Board shall be advised of, and shall 
consult with the Department of Foreign Affairs concerning the negotiation of any 
air agreement with foreign governments for the promotion, establishment, or 
development of foreign air transportation. 
 
(2)In exercising and performing its powers and duties under the  
provisions of this Act, the Civil Aeronautics Board shall take into 
consideration the obligation assumed by the Republic of the Philippines in 


any treaty, convention or agreement with foreign countries on matters 
affecting civil aviation. 
SECTION 
8. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
9. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
10. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
11. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
12. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
 
Approved,