1
NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Republic Act 9497, otherwise known as the Civil Aviation Act of 2008 was signed into 
law on March 4, 2008. The law abolished the Air Transportation Office (ATO) and in its stead 
created the Civil Aviation Authority of the Philippines (CAAP), which is mandated to set 
comprehensive, clear, and impartial rules for the aviation industry. Under RA 9497, the CAAP 
shall be an independent regulatory body with quasi-judicial and quasi-legislative powers with 
corporate attributes.     
Prior to the passage of RA 9497, the US Federal Aviation Authority (FAA) downgraded 
the Philippines to Category 2 status in 2007 after finding 88 critical elements. The "downgrade" 
meant the FAA had concerns over the ability of its counterpart (formerly ATO) to implement 
global aviation standards, which include security and safety, among others. 
In 2010, the EU placed Philippine air carriers on its blacklist, banning any airline from 
the Philippines from flying to destinations in Europe. These restrictions served as obstacles in 
the expansion plans of both Philippine Airlines and Cebu Pacific. The restrictions prevent 
airlines from the Philippines from mounting new flights from the Philippines to the US or 
Europe. It is likewise perceived as having a negative impact on tourism and the growth of the 
Philippines’ air transport sector in general. 
A technical review report of the FAA cited 23 “critical elements” that still have to be 
addressed for the improvement of the country’s aviation status. The remaining "critical 
elements" include 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. 
The efforts of CAAP have led to the resolution of many of the regulatory concerns 
raised, as indicated by the restoration of the Philippines to Category 1 status in April 2014 and 
the lifting of the ban by the EU on Philippine carriers to mount flights into Europe. 
This proposed measure seeks 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. 
CAAP was already given positive endorsement by the European Commission when it 
gave the Philippines the category upgrade. This means that international aviation bodies can 
now “rely on CAAP’s judgment regarding the safety of other airlines for in-country use” by 
international travellers. 
There is a need to pass these amendments in order to sustain and not to derail CAAP’s 
efforts which once again allowed carriers to offer direct flights from the Philippines to Europe 
and to more destinations in the United States as it continues to work with international aviation 
bodies to improve and upgrade the status of Philippine aviation. 
March 6, 2023
3:00 pm
7438


2
The significant amendments being proposed in this bill include: 
•
Increasing the term of the Director General (DG) to seven years
Increasing the DG’s term of office to 7 years - in the CAAP law is consistent with the
intent of strengthening CAAP as a regulatory body. The Legislature in enacting the
CAAP law is sought to insulate the agency from the constantly changing political
climate in the Executive Department.  The mandate is to cause the restructuring of the
civil aviation system, the promotion, development, and regulation of the technical,
operational, safety, and aviation security functions,” which can hardly be realized under
a DG who has no security of tenure and would, constantly find difficulty in instituting
reforms attuned to international standards in civil aviation if he is interrupted by factors
other than removal for cause.
•
Exemption of CAAP from the Salary Standardization Law (SSL)
The proposed exemption from the Salary Standardization Law is based the fact that
the qualifications and functions performed by CAAP directors, officers, and employees are 
different from those performed by other “government employees” as distinctly and highly 
technical in nature. 
ICAO relates that there is an impending global shortage of aviation professionals and 
aviation safety professionals. Taking the US as an example, in the next 20 years, there will be 
a need to add 25,000 new aircrafts to the current 17,000-strong commercial fleet. By 2026, 
there will be a need for 480,000 new technicians to maintain these aircrafts and over 350,000 
pilots to fly them. Between 2005 and 2015, 73% of the American air traffic controller population 
is eligible for retirement. The underlying problem, simply stated, the demand for aviation 
professionals will exceed supply. The scenario is the same here in the Philippines. ICAO 
enumerates factors for the decline and possible shortage to include “wholesale retirements in 
the current generation of aviation professionals, aviation professions not attractive enough to 
potential candidates, competition with other industry sectors for skilled employees, training 
capacity insufficient to meet demand, learning methodologies not responsive to new evolving 
learning style, accessibility to affordable training, lack of harmonization of competencies in 
some aviation disciplines.” 
The proposed amendments, likewise, seek to make the aviation industry more 
attractive to professionals by granting  CAAP, as lead authority, with a more flexible and less 
bureaucratic entry process workers, officials, and aviation technicians and professionals 
•
Enhanced fiscal autonomy
In view of the peculiar character of projects relating to regulatory and aviation safety
oversight functions, the amendment pertaining to increased fiscal autonomy is intended to 
minimize difficulties in securing prompt concurrence of budget allocations and expenditures. 
There is a dire need for these amendments. The lingering concern over the issue of 
the ability of the CAAP to implement safety standards affects the government's tourism targets 
since CAAP plays a key role in promoting tourism as one of the Philippine economy’s growth 
sectors. 
In 2015, tourist arrivals reached an all-time high of 5.36 million. Achieving the 
government’s target of luring  at least 10 million foreign tourists by 2022  increases certainty 
if the upgrade is sustained. This will certainly make the country more competitive and 


3
contribute tremendously in achieving the administration’s targets in tourism." 
The CAAP is the regulatory body responsible for air safety within Philippine borders. 
This is the reason it has to adhere to the requirements and standards set by international 
aviation authorities and make them feel confident that carriers under its direct supervision that 
fly into other jurisdictions pose no risk and meet an internationally accepted set of safety and 
competence standards. 
Reforming air transportation is critically important to the Philippines, not so much as it 
is a determining factor to the full realization of the latter’s potential as a tourist and business 
destination, but more importantly, to provide safe and efficient travel for the citizens and 
visitors in the country that they truly deserve. 
Of paramount importance should always be guaranteeing the safety and reliability of 
air transportation in the Philippines. Until the flying public can be firmly reassured that any 
accident was not a symptom of much larger problems that increase the likelihood of another 
accident, any other issues become irrelevant. 
In view of the foregoing, passage of this bill is earnestly sought. 
RUFUS B. RODRIGUEZ 


4
NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
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: 
SECTION 1.  Section 2 of Republic Act No. 9497, otherwise known as the Civil Aviation 
Authority Act of 2008, is hereby amended to read as follows: 
“SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to provide 
safe and efficient air transport and regulatory services in the Philippines by providing 
for the creation of a civil aviation authority with jurisdiction over the restructuring of the 
civil aviation system, the promotion, development and regulation of the technical, 
operational, safety, and aviation security functions under the civil aviation authority IN 
FURTHERANCE OF THE OBLIGATIONS OF THE PHILIPPINES TO THE 
INTERNATIONAL COMMUNITY AS CONTRACTING STATE TO THE CHICAGO 
CONVENTION. 
THE 
AUTHORITY 
SHALL 
COORDINATE 
WITH 
OTHER 
GOVERNMENT AGENCIES IN ADVANCING AVIATION SECURITY IN THE 
PHILIPPINES. 
TOWARDS THIS END, THE GOVERNMENT SHALL EXTEND ALL MEANS 
AND MECHANISMS NECESSARY FOR THE AUTHORITY TO FULFILL ITS VITAL 
TASK OF PROMOTING AND ENSURING SAFE AND EFFICIENT AIR 
TRANSPORT. 
IN VIEW OF THE CRUCIAL ROLE, AND THE NATURE, POWERS AND 
FUNCTIONS OF THE AUTHORITY, AS A GOVERNMENT INSTRUMENTALITY 
WITH CORPORATE POWERS, IT SHALL ENJOY FISCAL AND ADMINISTRATIVE 
AUTONOMY.”  
SEC. 2.  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 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 
7438


 
 
 
5
COMPLY WITH THE DISCLOSURE REQUIREMENTS IN SECTION 25 CHAPTER V 
OF RA 10140 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 
 
(a) [Establishment of Authority Headed by a] APPOINTMENT AND TERM OF OFFICE 
Director General - The Authority shall be headed by a Director General of Civil Aviation, 
referred to in this Act as the "Director General," who [shall be appointed by the 
President of the Philippines and] shall be responsible for all NON-ECONOMIC 
ASPECTS OF civil aviation in the Philippines and the administration of this Act. 
NOTWITHSTANDING THE PROVISIONS OF REPUBLIC ACT 10149, [T]the Director 
General shall be appointed based on the qualifications herein provided and shall have 
a [tenure] TERM of office for a period of [four (4)] SEVEN (7) years. His appointment 
may be extended for another non-extendible term of [four (4)] SEVEN (7) years and 
shall only be removed for cause in accordance with the rules and regulations 
prescribed by the Civil Service Commission. IN CASE THE DIRECTOR GENERAL 
FAILS TO COMPLETE HIS TERM, HIS SUCCESSOR SHALL ONLY SERVE FOR 
THE UNEXPIRED PORTION OF THE TERM OF HIS PREDECESSOR. NO 
DIRECTOR GENERAL CAN SERVE IN OFFICE FOR MORE THAN FOURTEEN (14) 
YEARS. 
THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT THE DIRECTOR 
GENERAL FROM A SHORTLIST OF THREE NOMINEES PREPARED BY THE 
BOARD OF DIRECTORS CONSTITUTED AS A SEARCH COMMITTEE 
COMPOSED OF FIVE MEMBERS THEREOF WHO SHALL RECEIVE AND 
EVALUATE NOMINATIONS. NO INCUMBENT DIRECTOR GENERAL SHALL BE A 
MEMBER OF THE SEARCH COMMITTEE. 
 
 
xxx” 
 
SEC. 3.  Section 5 of the same Act is hereby amended to read as follows: 
 
“SEC. 5.   Composition of the Board Members. — The corporate powers of the 
Authority shall be vested in a board, which is composed of [seven (7)] NINE (9) 
members: 
 
(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] REPRESENTATIVES OF THE DEPARTMENT of Finance 
FOREIGN AFFAIRS, INFORMATION AND COMMUNICATION TECHNOLOGY, 
INTERIOR and LOCAL GOVERNMENT, LABOR and EMPLOYMENT, 
NATIONAL DEFENSE, AND TOURISM; 
(d) [The Secretary of Foreign Affairs] TWO (2) REPRESENTATIVES FROM THE 
PRIVATE SECTOR TO BE APPOINTED BY  THE PRESIDENT OF THE 
PHILIPPINES FOR A TERM OF FOUR (4) YEARS RENEWABLE FOR 
ANOTHER TERM; 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 


 
 
 
6
ENGINEERING, ECONOMICS, LAW, AND INTERNATIONAL RELATIONS AND 
MANAGEMENT, OR RELATED FIELDS; 
(e) [The Secretary of Justice; 
(f) The Secretary of the Interior and Local Government; and  
(g) The Secretary of the Department of Labor and Employment;] 
 
The Directors listed under subsections [(a) to (g)] 5(c) shall be ex officio 
members of the Board of Directors: PROVIDED THAT, IN THE ABSENCE OF THE 
CHAIRMAN, HE SHALL DESIGNATE AN UNDERSECRETARY OF THE DOTR TO 
ACT IN HIS BEHALF AS CHAIRMAN; PROVIDED FURTHER, THAT THE 
DIRECTOR 
GENERAL, 
IN 
HIS 
ABSENCE, 
SHALL 
DESIGNATE 
HIS 
REPRESENTATIVE FROM THE AUTHORITY TO ACT AS VICE-CHAIRMAN: 
Provided, That, in the absence of the Director appointed in subsections (c) [to (g)], the 
Director concerned shall designate with full power and authority, in writing, [an] THE 
officer NEXT IN RANK TO HIM in his department or office to act on his behalf as a 
Director.”  
 
SEC. 4. 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 
designated] as the Director General unless he is a Filipino citizen, at least thirty-five 
(35) years of age, of good moral 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. 5.  Section 12 of the same Act is hereby amended to read as follows: 
 
 
“SEC. 12. Personnel. – [Qualified existing personnel of the Air Transportation Office 
 
(ATO) shall be given preference in the filling up of plantilla positions created in the 
 
Authority, subject to existing civil service rules and regulations.] 
THE DIRECTOR GENERAL SHALL EXERCISE APPOINTING AND DISCIPLINING 
POWERS OVER ALL PERSONNEL OF THE AUTHORITY. 
CONSIDERING THE HIGHLY TECHNICAL CHARACTER AND NATURE OF 
THE FUNCTIONS OF THE AUTHORITY, ITS PERSONNEL SHALL BE EXEMPTED 
FROM THE REQUIREMENTS PRESCRIBED UNDER THE RULES GOVERNING 
THE CAREER EXECUTIVE SERVICE. ALL LAWS, RULES, AND REGULATIONS, 
GOVERNING 
POSITIONS, 
CLASSIFICATIONS 
AND 
QUALIFICATION 
STANDARDS INCLUDING, BUT NOT LIMITED TO, PRESIDENTIAL DECREEE NO. 
985, REPUBLIC ACT NO. 6758, AS AMENDED, JOINT RESOLUTION NO. 4 (2009 
OF THE PHILIPPINE CONGRESS) AND REPUBLIC ACT 10149.” 
 
SEC. 6.  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/levy 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. 
NOTWITHSTANDING ANY LAW TO THE CONTRARY, ESPECIALLY THE 
PERTINENT PROVISIONS OF REPUBLIC ACT NO.7656 OR THE DIVIDEND LAW. 
ALL EARNINGS OF THE AUTHORITY FROM COLLECTION/LEVY OF ANY AND 
ALL SUCH FEES, CHARGES, DUES, ASSESSMENTS AND FINES IT IS 
ENPOWERED TO COLLECT/LEVY  UNDER THIS ACT  SHALL BE USED SOLELY 
TO FUND THE OPERATIONS OF THE AUTHORITY. THIS SECTION 15 MAY ONLY 
BE MODIFIED, AMENDED, OR REPEALED EXPRESSLY BY LAW THAT 


 
 
 
7
SPECIFICALLY MODIFIES, AMENDS OR REPEALS THIS SECTION OR A 
PORTION HEREOF. 
THE 
INCOME 
GENERATED 
BY 
THE 
AUTHORITY 
FROM 
AIR 
NAVIGATIONAL CHARGES SHALL BE UTILIZED FOR COMPLIANCE WITH 
INTERNATIONAL STANDARDS OF SAFETY. 
 
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). THE COCAAP MAY REQUIRE THE AUTHORITY TO 
SUBMIT, FURNISH OR PROVIDE ANY AND ALL DOCUMENTS IN RELATION TO 
THE UTILIZATION OF FUNDS OF THE AUTHORITY AND ANY OTHER NON-
FINANCIAL 
DOCUMENTS 
RELATIVE 
TO 
THE 
DUTIES, 
FUNCTIONS, 
OPERATIONS OF THE AUTHORITY.” 
 
SEC. 7.  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 AND REVISE THE SAME FROM TIME TO TIME 
AS IT MAY DEEM NECESSARY: Provided, That the Board shall determine and fix 
the compensation, EMOLUMENTS and fringe benefits of employees holding 
technical positions [that are not common to the other agencies of the government 
which shall be specified in the Implementing Rules and Regulations].IT SHALL 
PROVIDE ANNUAL REVIEWS OR INCREASES BASED ON PRODUCTIVITY.”  
 
SEC. 8.  A new section 18-A is hereby inserted to read as follows: 
 
“SEC. 18-A.  MANAGEMENT OFFICIALS AND EMPLOYEES; MERIT SYSTEM – 
THE  BOARD SHALL ESTABLISH A HUMAN RESOURCES MANAGEMENT 
SYSTEM, WHICH SHALL PROMOTE 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. 9.  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 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 AND SUCH 
OTHER PERSONS OF THE AUTHORITY WHO MAY BE AUTHORIZED TO 


 
 
 
8
UNDERTAKE OR PERFORM REGULAR AND FREQUENT FLIGHTS IN THE 
PERFORMANCE OF THEIR DUTIES, MAY BE  INCREASED BY THE AUTHORITY 
ONLY IF IT HAS SUFFICIENT BUDGET FOR THE SAME AND IF IT WILL SERVE 
THE INTEREST OF THE AVIATION INDUSTRY AS A WHOLE.” 
 
SEC. 10.  A new section 18-C is hereby inserted to read as follows: 
 
“SEC. 18-C. EMPLOYMENT OF PERSONS FOR CONFIDENTIAL, HIGHLY 
TECHNICAL AND POLICY DETERMINING POSITIONS – THE DIRECTOR 
GENERAL 
MAY, 
MAKE 
APPOINTMENTS 
TO 
CONFIDENTIAL, 
HIGHLY 
TECHNICAL, AND POLICY DETERMINING POSITIONS AS MAY BE REQUIRED 
BY THE FUNCTIONS AND RESPONSIBILITIES OF THE OFFICE.” 
 
SEC. 11.  Section 24 of the same Act is hereby amended to read as follows: 
 
 
“SEC. 24. Powers of the Board. The Board shall have the following general powers: 
 
xxx 
 
(d) ANY LAW TO THE CONTRARY NOTWITHSTANDING, ORGANIZE, RE-
ORGANIZE, AND [D]determine the organizational structure of the Authority in 
accordance  
with the provisions of this 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 decisions, findings and rulings of the 
 
Director General, to issue subpoena ad testificandum or subpoena 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 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)       Exercise appellate powers to order the taking of depositions in any proceeding, 
 
or investigation, pending before the Board at any stage of such proceeding or 
 
investigation;] 
 
Xxx 
 
[(j)    Promulgate rules and regulations as may be necessary in the interest of safety 
in air commerce pertaining to 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 carrier operating 
certificates, air agency certificates, navigation facility and aerodrome certificates; air 
traffic routes; radio and aeronautical telecommunications and air navigation aids; 
aircraft accident inquiries; aerodromes, both public and private-owned; construction of 
obstructions to aerodromes; height of buildings; antennae and other edifice; 
registration of aircrafts; search and rescue; facilitation of air transports; operations of 
aircrafts, both for domestic and international, including scheduled and non-scheduled; 
meteorology in relation to civil aviation; rules of the air; air traffic services; rules for 
prevention of collision of aircrafts; identification of aircraft; rules for safe altitudes of 
flight; and such other rules and regulations, standards, governing other practices, 


 
 
 
9
methods and/or procedures as the Director General may find necessary and 
appropriate to provide adequately for safety regularity and efficiency in air commerce 
and air navigation;] 
 
Xxx 
 
 
[ (m) Adopt a system for the registration of aircraft as hereinafter provided; ] 
 
 
Xxx 
 
 
[(q) Upon its own initiative or the recommendation of the Director General or an 
 
application of a private person, grant exemption from the requirements of observing 
 
rules or regulations issued in accordance with this Act: Provided, That said grant of 
 
exemption is not prejudicial to flight safety; 
 
 
(r)   Formulate rules and regulations concerning compliance of the carrier and the 
 
public for the safe transport of goods and materials by air pursuant to international 
 
standards or Annexes to the Chicago Convention; and 
 
 
(s)   In coordination with the appropriate government agency tasked to provide airport 
 
security, shall: 
 
(1) Prescribe reasonable regulation requiring that all passengers and all property 
intended to be carried in the aircraft cabin in commercial air transport be screened 
by weapon-detecting procedure or facilities employed or operated by employees 
or agents of the air operator or foreign air operator prior to boarding the aircraft 
for such transportation; 
 
(2) Prescribe such other reasonable rules and regulations requiring such parties, 
methods and procedures as the Director General may find necessary to protect 
persons and property aboard aircraft operating in commercial air transport against 
acts of criminal violence and aircraft piracy; and 
 
(3) To the extent practicable, require uniform procedures for the inspection, 
detention, and search of persons and property in domestic commercial air 
transport and international commercial air transport to assure their safety and to 
assure that they will receive courteous and efficient treatment by air operators and 
their agents and employees.] 
 
(Q) 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) 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 
 
(S) THE BOARD MAY 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. 


 
 
 
10
 
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. 12. Section 25 is hereby amended to read as follows: 
 
“SEC. 25. Issuance of Rules and Regulations. - The [ Board, in consultation 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. 13.  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 schedule of charges and fees, the current 
charges and fees of the ATO shall continue to apply.” 
 
SEC. 14. Section 27 of the same Act is hereby amended to read as follows: 
 
“SEC. 27. Issuance of Rules of Procedure and Practice. - The [Board may authorize 
the] 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 [and other] TO IMPLEMENT THE REGULATORY issuances of 
the ICAO. [Pending the promulgation of such new rules of procedures and practice, 
current rules of procedures and practices of the ATO shall continue to apply.]” 
 
SEC. 15. Section 28 of the same Act is hereby amended to read as follows: 
 
“SEC. 28. Appellate [Powers] Jurisdiction – [The Board, on an appeal properly taken 
by an interested party from a decision, judgment or order of the Director General, shall 
have the power to: 
 
(a)   Review, confirm, modify, revise, amend or reverse, as the case may be, 
decisions, judgments and/or orders of the Director General; 
 
(b)   Confirm, remit, mitigate, increase or compromise, as the case may be, 
fines imposed by the Director General pursuant with the provisions of this Act; and 
 
(c)   Review, confirm, modify, revise, amend or reverse, as the case may be, 
impositions by the Director General of liens on personal and real properties of entities, 
persons, corporations or partnerships in default, or those who have failed to perform 
their obligations pursuant to rules and regulations promulgated under this  Act, 
or 


 
 
 
11
those who shall have failed to pay the fines or other pecuniary penalties for violation 
thereof. 
 
In no case that the Director General shall participate in the hearing and 
adjudication of an appealed case before the Board where the subject of appeal is a 
judgment or decision rendered by his office. In such case, it requires four (4) concurring 
votes of the members of the Board who actively participated in the deliberation of the 
appealed case before the judgment or decision of the Director General can be modified 
or reversed.] 
ALL DECISIONS, RULINGS, RESOLUTIONS OF THE BOARD AND THE 
DIRECTOR GENERAL ARE APPEALABLE TO THE COURT OF APPEALS.” 
 
SEC.16. Section 30 of the same Act is hereby amended to read as follows: 
 
“SEC. 30. Annual Budget. THE AUTHORITY SHALL ADOPT AN ANNUAL BUDGET 
TO FUND THE OPERATIONS OF THE AUTHORITY. UNLESS THE AUTHORITY 
SHALL REQUIRE SUBSIDY AND/OR GUARANTEE OF ITS LIABILITY FROM THE 
NATIONAL TREASURY, ITS  
BUDGET FOR THE YEAR NEED NOT BE 
SUBMITTED TO CONGRESS FOR APPROVAL AND INCLUSION IN THE 
GENERAL APPROPRIATIONS ACT.  SUPPLEMENTARY BUDGET MAY BE 
PREPARED AND ADOPTED AT A BOARD MEETING CALLED FOR THE 
PURPOSE.” 
 
SEC.17. Section 35 of the same Act is hereby amended to read as follows: 
 
“SEC. 35. Powers and Functions of the Director General. - The Director General shall 
be the chief executive and operating officer of the Authority. He shall have the following 
powers, duties and responsibilities: 
 
 
Xxx 
(d) DETERMINE THE ORGANIZATIONAL STRUCTURE OF THE AUTHORITY IN 
ACCORDANCE WITH THE PROVISIONS OF THIS ACT, ESTABLISH A HUMAN 
RESOURCES MANAGEMENT SYSTEM BASED ON MERIT AND FITNESS, AND 
ADOPT A RATIONAL COMPENSATION AND BENEFITS SCHEME; EXERCISE 
APPELLATE POWERS TO ORDER THE TAKING OF DEPOSITIONS IN ANY 
PROCEEDING, OR INVESTIGATION, PENDING BEFORE THE BOARD AT ANY 
STAGE OF SUCH PROCEEDING OR INVESTIGATION; 
 
(e) To issue air OPERATOR certificate in accordance with the minimum safety 
standards for the operation of the air carrier to whom such certificate is issued. The air 
OPERATOR certificate shall be issued only to aircrafts registered under the provisions 
of this Act. 
AN AIR OPERATOR CERTIFICATE HOLDER MAY OPERATE AND USE 
FOREIGN-REGISTERED 
AIRCRAFT 
PROVIDED 
THAT 
THE 
STATE 
OF 
REGISTRATION DELEGATES TO THE DIRECTOR GENERAL  THE TECHNICAL 
AND SAFETY OVERSIGHT FUNCTIONS OVER THE AIRCRAFT AND/OR ITS 
CREW, AS APPLICABLE PURSUANT TO ICAO ARTICLE 83BIS, AND SUBJECT 
TO SUCH RULES AND REGULATIONS PROMULGATED BY THE AUTHORITY. 
 
(F) PROMULGATE RULES AND REGULATIONS AS MAY BE NECESSARY IN THE 
INTEREST OF SAFETY IN AIR COMMERCE PERTAINING TO 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 CARRIER OPERATING CERTIFICATES, AIR AGENCY CERTIFICATES, 
NAVIGATION FACILITY AND AERODROME CERTIFICATES; AIR TRAFFIC 


 
 
 
12
ROUTES; RADIO AND AERONAUTICAL TELECOMMUNICATIONS AND AIR 
NAVIGATION AIDS; AIRCRAFT ACCIDENT INQUIRIES; AERODROMES, BOTH 
PUBLIC AND PRIVATE-OWNED; CONSTRUCTION OF OBSTRUCTIONS TO 
AERODROMES; HEIGHT OF BUILDINGS; ANTENNAE AND OTHER EDIFICES; 
REGISTRATION OF AIRCRAFTS; SEARCH AND RESCUE; FACILITATION OF AIR 
TRANSPORTS; OPERATIONS OF AIRCRAFTS, BOTH FOR DOMESTIC AND 
INTERNATIONAL, 
INCLUDING 
SCHEDULED 
AND 
NON-SCHEDULED; 
METEOROLOGY IN RELATION TO CIVIL AVIATION; RULES OF THE AIR; AIR 
TRAFFIC SERVICES; FLIGHT INFORMATION SERVICES, ALERTING SERVICE 
AND AERONAUTICAL INFORMATION SERVICES WITIN THE PHILIPPINE 
FLIGHT INFORMATION REGION, RULES FOR PREVENTION OF COLLISION OF 
AIRCRAFTS, BETWEEN AIRCRAFT AND LAND OR WATER VEHICLES AND 
OBJECTS, AND BETWEEN AIRCRAFT AND AIRBORNE OBJECTS; RULES FOR 
THE NAVIGATION, PROTECTION AND IDENTIFICATION OF AIRCRAFT; RULES 
FOR EFFICIENT UTILIZATION OF THE NAVIGABLE AIR SPACE; RULES FOR 
SAFE ALTITUDES OF FLIGHT; AND SUCH OTHER RULES AND REGULATIONS, 
STANDARDS, 
GOVERNING 
OTHER 
PRACTICES, 
METHODS 
AND/OR 
PROCEDURES AS THE DIRECTOR GENERAL MAY FIND NECESSARY AND 
APPROPRIATE TO PROVIDE ADEQUATELY FOR SAFETY REGULARITY AND 
EFFICIENCY IN AIR COMMERCE AND AIR NAVIGATION; 
 
(v) Adopt a system for the registration of aircraft as hereinafter provided.” 
 
SEC 18. Section 40 of the same Act is hereby amended to read as follows: 
 
“SEC. 40. Creation of Flight Standards Inspectorate Service. - (a) [ The Board, other 
than the offices it shall create in furtherance of this Act, shall establish a permanent 
office known as the Flight Standards Inspectorate Service (FSIS) that will ] assist the 
Director General in carrying out the responsibilities of his office for certification and 
ongoing inspections of aircraft, airmen and air operators. 
The FSIS shall perform the following functions: 
(1) Airworthiness inspection; 
(2) Flight operations inspection and evaluation; and 
(3) Personnel licensing.” 
 
[Furthermore, the Board shall create, but not limited to, the following offices which will 
 
provide support to the functions of the FSIS, namely: Aircraft Registration, Aircraft 
 
Engineering and Standards, Airmen Examination Board and Office of the Flight 
 
Surgeon.] 
 
SEC. 19.  Section 73 of the same Act is hereby amended to read as follows: 
 
“SEC. 73. Statutory Lien AND POWER TO DETAIN. - The Director General [,after 
complying with the required legal formalities provided by law,] shall have the power to 
impose lien on AND DETAIN aircraft and machinery: 
 
(a) If the charges and other fees are not paid in full on due date or any part of the 
charges or the late payment penalty thereto remains unpaid; and 
 
(b) Failure to pay administrative fines arising from violation of any rules and regulations 
promulgated by the Authority.” 
 
SEC. 20. A new section 81-B is hereby inserted to read as follows: 
 
 
“SEC. 81.B Notwithstanding Section 81 (b), the penalties provided under Section 81, 
 
paragraph (b), clauses (5), (6), (7), (8), (9),(10), (11), and (12), may be imposed by a 


 
 
 
13
 
court of competent jurisdiction after the filing of a proper criminal complaint by an air 
 
operator, airman, or crew member.” 
 
SEC. 21.  A new section 84-A is hereby inserted to read as follows: 
 
“SEC. 84-A. EXECUTION OF MONETARY JUDGMENT. -THE DIRECTOR 
GENERAL IS AUTHORIZED TO ENFORCE MONETARY JUDGMENTS THROUGH 
THE SHERIFF WHO SHALL DEMAND THE IMMEDIATE PAYMENT OF THE FULL 
AMOUNT STATED IN THE WRIT OF EXECUTION TO BE IMPOSED FOR EACH 
VIOLATION OF THIS ACT.  
 
FOR THIS PURPOSE, THE DIRECTOR GENERAL MAY ISSUE AN ORDER 
DIRECTING THE SHERIFF TO REQUEST THE ASSISTANCE OF LAW 
ENFORCEMENT AGENCIES TO ENSURE COMPLIANCE WITH THE WRIT OF 
EXECUTION, ORDERS OR PROCESSES.” 
 
SEC. 22.  Section 91 of the same Act is hereby amended to read as follows: 
 
“SEC. 91.  Congressional Oversight Committee. — A Congressional Oversight 
Committee, hereinafter referred to as the “Committee”, is hereby constituted in 
accordance with the provisions of this Act. The Committee shall be composed of the 
Chairman of the Senate Committee on Public Services and Chairman of the House 
Committee on Transportation and four (4) additional members from each House to be 
designated by the Senate President and the Speaker of the House of Representatives, 
respectively. The Committee shall, among others, in aid of legislation: 
 
(a) 
Monitor and ensure the proper implementation of this Act; 
(b) 
Review the collection performance of the Authority; and 
(c) 
Review the proper implementation of the programs of the Authority and the use 
of its collected fund AND BUDGET. 
 
In furtherance of the hereinabove cited objectives, the Committee is empowered to 
require the Authority to submit all pertinent information including, but not limited to, its 
collection performance data and its annual audited financial statements certified by the 
Commission on Audit. ANY MEMBER OF THE COMMITTEE OR HIS OR HER 
REPRESENTATIVE IS AUTHORIZED TO SIT AS AN OBSERVER IN ANY OF THE 
MEETING OR FUNCTION OF THE BOARD. The Congressional Oversight Committee 
shall be in existence for a period of [five (5)] TEN (10) YEARS FROM THE 
EFFECTIVITY OF THIS ACT, and thereafter, its oversight functions shall be exercised 
by the Senate Committee on Public Services and the House Committee on 
Transportation acting separately. 
 
SEC. 23. TRANSITORY PROVISIONS – ALL POWERS, DUTIES AND RIGHTS VESTED 
BY LAW AND EXERCISED BY THE AUTHORITY RELATING TO THE PLANNING, 
DEVELOPMENT, 
CONTROL, 
SUPERVISION, 
CONSTRUCTION, 
MAINTENANCE, 
OPERATION, PROVISION OF SERVICES AND FACILITIES AND THE EFFICIENT 
FUNCTIONING OF ALL DOMESTIC AND INTERNATIONAL AIRPORTS PURSUANT TO 
REPUBLIC ACT NO. 9497, SHALL REMAIN WITH THE AUTHORITY UNTIL THE AIRPORT 
GOVERNING AUTHORITY TASKED TO IMPLEMENT THESE FUNCTIONS IS 
ESTABLISHED NOT MORE THAN FIVE YEARS FROM THE EFFECTIVITY OF THIS ACT.  
ALL ASSETS, REAL AND PERSONAL PROPERTIES, CONTRACTS, RECORDS 
AND DOCUMENTS, FUNDS AND REVENUES OWNED BY OR VESTED IN THE 
AUTHORITY IN RELATION TO THE ABOVE POWERS, DUTIES AND RIGHTS SHALL BE 
TRANSFERRED TO THE AIRPORT GOVERNING AUTHORITY. IN THE INTERIM, THE 
AUTHORITY SHALL SEPARATE THE DEVELOPMENTAL AND COMMERCIAL 


 
 
 
14
FUNCTIONS BY IMPLEMENTING AN ORGANIZATIONAL RESTRUCTURING THAT WILL 
ENABLE AND ENSURE THE FUNCTIONAL SEPARATION WITHIN A PERIOD OF ONE (1) 
YEAR FROM THE EFFECTIVITY OF THIS ACT.  
 
SEC. 24.  Repealing Clause –REPUBLIC ACT 10149 AND REPUBLIC ACT 7656 AND 
OTHER LAWS decrees, executive orders, rules and regulations and other issuances or part 
thereof, which are inconsistent with this Act, are hereby repealed, amended, or modified 
accordingly. 
 
SEC. 25. Effectivity – This Act shall take fifteen (15) days after its publication in two (2) 
newspapers of general circulation. 
 
Approved,


 
 
 
15