NINETEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
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Btmtt
o{ tl)e igrv'fi'ptnrp
'22 AUG-8 AlO 32
S. No
RECEIVED BV:
Introduced by Senator Grace Poe
AN ACT
CREATING THE PHIUPPINE AIRPORTS AUTHORITY, DEFINING ITS 
POWERS, FUNCTIONS AND RESPONSIBILITIES, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Airports are often considered as "gateways to nations''1, and are considered 
as key infrastructures in the development of a country's economy. They are direct 
contributors to a nation's economy by providing services to airlines, moving 
passengers, and transporting cargo2, and serve as catalysts for tourism growth and 
national and International trade relations.3 Airports and air transport are especially 
important in the Philippines. In 2018, the air transport sector is said to have 
supported at least 1.2 mi.Iion jobs, and contributed at least $10.4 Billion to the 
country's GDP.4
Currently, the Philippines has more than 80 airports nationwide that hold 
domestic and/or international flights. And while a number of these are operated by 
specific entitles such as the Manila International Airport Authority (over Ninoy Aquino 
International Airport), Clark International Airport Corporation (over the Clark 
International Airport), and i.he Mactan-Cebu International Airport Authority (over the 
Mactan-Cebu International Airport), majority of these airports are under the 
operational and supervisory control of Civil Aviation Authority of the Philippines 
(CAAP) pursuant to Republic Act No. 9497 (RA 9497).
1 Attlee, James. (30 January 2016). "Airports are 'Gateways to Nations' But Can They also be Beautiful?". The 
Independent. Accessed from: https7/www.independent.co.uk/travel/news-and-advice/airports-are-gateways- 
to-nations-but-can-they-also-be-beautiful-a6840846.html
2 International Finance Corporation, (n.d.) "The Impact of COVID-19 on Airports: An Analysis". Last Updated:
May 
2020. 
Accessed 
from:
https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/infrastructure/reso
urces/the+impact+of+covid-
19+on+airports#:~:text=Airports%20are%20essential%20to%20the,governments%2C%20consumers%2C%20a
nd%20industries.
3 Berti, Adele. (7 June 2019). "Can Airports Help Lift Communities Out of Poverty?" Airport Technology. 
Accessed from: https://www.airpori-technology.com/features/imporxance-of-airports-to-a-country/
4 International Air Transport Association, (n.d.) "The Importance of Air Transport to the Philippines". Date 
Accessed: 22 March 2022. Accessed from: https://www.iata.org/en/iata-repository/publications/economic- 
reports/philippines—value-of-aviation/


However, under the said law, CMP is supposed to juggle different and 
conflicting roles within the aviation sector. For one, CMP is required to establish and 
operate airports6, and is likewise tasked to plan, develop, construct and operate new 
airports in line with relevant government policies such as ensuring the availability of 
air transport infrastructure in remote areas.7 At the same time, it is also responsible 
for the regulation of the same, including the power to issue appropriate certifications 
for airports8, as well the power to inspect the said facilities9 and to Investigate any 
violations of the rules and regulations pertaining thereto.10 Evidently, CMP regulates 
what it operates, which lessens its effectivity both as a regulatory agency and as an 
operator.11
To untangle these conflicting functions of CMP, as well as to fulfill the need 
to upgrade existing international and domestic airports and air navigation facilities in 
the country in compliance with International standards of airport accommodation and 
services and to meet the present and future air traffic and aviation services demands 
in the country, there is a need to create a separate entity that would focus solely on 
the planning, construction and operation of airports. Under this Bill, this entity shall 
be the Philippine Airports Authority, with its raison d'etre to establish, construct, 
develop, and effectively manage and operate airports In the country up to par with 
international standards for air transportation and aviation safety.
In view of the foregoing, the early passage of this bill is earnestly sought.
6 Section 35(1), RA 9497.
7 Section 78, RA 9497.
8 Section 68(b), RA 9497.
9 Section 33(d), RA 9497.
10 Section 35(i), RA 9497.
11 Joint Foreign Chambers of the Philippines. (09 October 2018). Letter to Rep. Jesus Sacdalan. Accessed from: 
https://www.jccipi.com_ph/wp-content/uploads/2019/02/20181009_JFC-Letter-to-Rep.-Jesus-Sacdalan-on- 
Philippine-Airport-Devebpment-Corporation-bill.pdf


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
4 Senate
of tlje '' ftarp
*22 AUG-8 A10 32
S. No
received BY'.
Introduced by Senator Grace Poe
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:
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Section 1. //tie, - This Act shall be known as the "Philippine Airports Authority
Act".
Sec. 2. Definition of Terms. - As used in this Act:
a) Authorityrefer to the Philippine Airports Authority;
b) Aircraft ref&rs 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, as used in this Act, shall refer to a civil aircraft only and 
will not include State or public aircraft;
c) Airport shew 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 
shall include all domestic and international airports In the country, except 
tliose operated, managed or controlled by other independent airport 
authorities as provided by law, executive orders, or other issuances;
d) Board shew refer to the Board of Directors of the Authority.
Sec. 3. Creation of the Philippine Airports Authority. - There is hereby 
established a body corporate to be known as the Philippine Airports Authority which 
shall be attached to the Department of Transportation (DOTr) and shall be headed 
by a General Manager as Chief Executive Officer of the Authority. The Authority may


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establish such offices, branches, agencies or subsidiaries as it may deem proper and
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necessary to administer and operate all domestic and international airports In the
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country: Provided, That the establishment of a subsidiary shall have the prior
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approval of the President of the Philippines: Provided, Further, That this shall not
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diminish the jurisdiction, powers and authority of other independent airport
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authorities as may be created by law.
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Sec. 4. Purposes and Objectives. - The Authority shall have the following
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purposes and objectives:
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a) To help encourage and promote domestic and international air traffic in the
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Philippines as a means of accelerating the development of aviation and air
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transportation in the country, as well as making the Philippines a center of
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Iriternational trade and tourism;
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b) To formulate, adopt and Implement in all domestic and international airports
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within its jurisdiction internationally acceptable standards of airport
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accommodation and service; and
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c) To modernize and upgrade all airport facilities In order to provide safe,
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efficient, and reliable services for domestic and international air travel.
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Sec. 5. Functions,, Powers and Duties of the Authority. - The Authority shall
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have the following functions, powers and duties:
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a) To formulate, in coordination with the Civil Aviation Authority of the
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Philippines (CAAP) and other appropriate government agencies, a
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comprehenave and integrated policy and program for all domestic and
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international airport terminals within its jurisdiction, and to Implement, review
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and update such policy and program periodically;
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b) To plan, design, acquire, establish, construct, operate, improve, control,
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supervise, construct, maintain, and repair airports and such other facilities
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and services as shall be necessary for the safe and efficient functioning of the
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same;
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c) To control and/or supervise, as may be necessary, the construction of any
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structure or the rendition of any service 
in all domestic and International
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airport within its jurisdiction;
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d) To sue and be sued in its corporate name;


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e) To adopt and use a corporate seal;
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f) To succeed by its corporate name;
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g) To adopt Its by-iaws, and to amend or repeal the same from time to time;
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h) To execute or enter into contracts of any kind or nature;
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i) To acquire, purchase, own, administer, lease, 
mortgage, sell or otherwise
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dispose of any land, building, airport facility, or property of whatever kind and
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nature, whether mo\ able or Immovable, or any interest therein;
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j) To exercise the power of eminent domain in the pursuit of its purposes and
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objectives;
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k) To levy, and collect dues, charges, fees or assessments for the use of the
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airport premises, wo^ks, appliances, facilities or concessions or for any service
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provided by the Authority, subject to the approval of the Secretary of
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Transportation In consultation with the Secretary of Finance;
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I) To invest its idle funds, as it may deem proper. In government securities and
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other evidences of indebtedness of the government;
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m) To provide services, whether on its own or otherwise, within the airports and
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the approaches thereof, 
which shall include but not be limited to, the
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following:
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1. Aircraft movement and allocation of parking areas of aircraft on the
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ground;
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2. Loading or unloading of aircraft;
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3. Passenger handling and other services directed towards the care,
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convenience and security of passengers, visitors and other airport
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users; and
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4. Sorting, weignlng, measuring, warehousing or handling of baggage
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and goods.
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n) To perform such other acts and transact such other business, directly or
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indirectly as may be necessary, incidental or conducive to the attainment of
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the purposes and objectives of the Authority, including the adoption of
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necessary measures to remedy congestion in the airports; and
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o) To exercise all the powers of a corporation under the Corporation Law, insofar
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as these powers are not Inconsistent with the provisions of this Act.


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Sec. 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 movem mt 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.
Sec. 7. Board of Directors. - The corporate powers of the Authority shall be 
exercised by and vested In a Board of Directors. It shall be composed of seven (7) 
members, as follows:
1) Secretary of the DOTr or his representative as Chairperson;
2) General Manager of the Authority as Vice-Chairperson;
3) Secretary of the Department of Finance or his representative;
4) Four (4) representaelves 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 or more as may be required by 
the exigencies of the circumstances. The presence of at least four (4) members shall 
constitute a quorum, and the majority vote of three (3) members in a meeting 
where quorum is present shall be necessary for the adoption of any rule, regulation, 
resolution, decision or any other act of the Board.


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The members of the Board shall receive per diems, for every meeting actually
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attended: Provided, that such per diem shall conform to existing guidelines of the
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Commission on Audit and other pertinent laws. Members of the Board shall be
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reimbursed by the Authority for actual expenses, including travelling and subsistence
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expenses, incurred by them in the performance of their duties.
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No member of the Board shall have financial or pecuniary interest, directly or
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indirectly. In any business contract or transaction entered Into by the Authority or in
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any privilege granted by it. Neither shall a member have any interest, financial or
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otherwise. In any undertaking or business with an Inherent conflict of interest with
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the Authority.
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Sac. 8. Functions, Powers, and Duties of the Board. - The Board shall have
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the following functions, powers and duties:
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a) To define and approve the programs, plans, policies, rules and regulations,
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procedures and guidelines of the Authority for the development and operation
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of the airports within the context of the overall Government objectives, and to
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control the management, operation and administration of the Authority;
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b) To recommend to the President of the Philippines, for appointment, a General
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Manager of the Authority who shall be the Chief Executive Officer of the
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Authority;
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c) To approve the Authority's organizational and administrative structure,
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staffing pattern, operating and capital expenditures, and financial budgets,
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prepared in accordance with the corporate plan of the Authority, upon
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recommendation of the General Manager, subject to existing laws, rules and
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regulations; and
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d) To exercise all functions and powers necessary or Incidental to attain the
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purposes and objectives of this Act.
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Sec. 9. Development of New Airports. - The Board shall be responsible for the
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planning, development, construction, operation, maintenance or the expansion of
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airports. In planning and developing new airports, the Board shall consider:
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a) The suitabiSty of a proposed site In terms of terrain and proximity to
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population centers;
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b) The projected size of the market to be served by a proposed airport;


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c) The ability of a proposed airport to generate sufficient revenue to cover costs
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cf operation and maintenance;
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d) The availability of funding from both local and foreign sources for the
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construction of a new airport or expansion of an existing one;
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e) The proximity of other airports to a proposed new airport and the capability of
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such other airport to handle traffic projected to be handled by the new
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proposed airport;
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f) The government's public service obligations such as the government's duty to
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ensure the availability of air transport infrastructure for remote areas far from
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major population centers and that are not otherwise easily accessible by
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transportation by land or sea. In such cases, the Board shall take reasonable
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steps to ensure that funding will be available for the operation and
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maintenance of such airports;
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g) International Civil Aviation Organization best practices and recommendations
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concerning the development of airports; and
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h) Such other considerations as the Board, in the exercise of its reasonable
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discretion, may consider relevant or Important.
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Sec. 10. Functions, Powers and Duties of the General Manager - The General
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Manager shall be directly responsible to the Board, and shall have the following
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functions, powers and duties;
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a) To direct and supervise the management, operation and administration of the
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Authority, and Its integral units Including its buildings, runways, facilities and
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equipment, so as to provide international standards of service to airport
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users, and to ensure its financial stability In accordance with the programs,
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plans, policies, procedures and guidelines of the Board;
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b) To provide general supervision and overall coordination of all government
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agencies operating in the airports with respect to the allocation and use of
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building space and airport premises;
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c) To undertake researches, studies, investigations, and other activities related
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to the present operations and future development requirements of airports,
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on his own initiative or upon instructions of the Board, and to submit


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comprehensive reports, and appropriate recommendations to the Board for its
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information and action;
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d) To appoint, transfer, suspend, remove or otherwise discipline any subordinate
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officer or employee of the Authority, subject to the approval of the Board and
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to engage, either on contractual basis or other suitable arrangements, the
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services of highly qualified professionals, experts, technical advisers or
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consulting firms and to determine their compensation or fees including other
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terms and conditions of employment as may be authorized by the Board;
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e) To enter into a memorandum of agreement/understanding, contracts or such
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other arrangements as may be feasible with such government agencies or
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private entities operating or providing services to the Authority to ensure
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proper coordination and integration of all activities in the Authority, subject to
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the approval of the Board or such laws, rules and regulations as are
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applicable in the exercise of such authority;
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f) To establish and maintain a system, in coordination with the appropriate
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government offices and agencies, for the regular and prompt dissemination of
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financial, statistical and other relevant data within the Authority and to the
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Board;
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g) Within the limits of the authority delegated to him by the Board, to execute
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contracts, incur obligations, acquire and dispose of assets, and deliver
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documents, on behalf of the Authority;
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h) To Implem^t and enforce decisions, orders, rules and regulations issued,
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prescribed or adopted by the Board; and
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i) To perform such other duties as the Board may delegate or assign, and such
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acts as may be necessary and proper to implement this Act.
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Sec. 11. Capital. - The Authority shall have a capital of Fifty Billion Pesos (Php
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50,000,000,000.00) which shall be contributed by the National Government. This
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shall consist of:
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a) The value of fixed assets (including airport facilities, runways and equipment)
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and such other properties, movable and immovable, which may be
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contributed by the National Government or transferred by it from any of its
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agencies, the valuation of which shall be determined jointly with the


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Department of Budget and Management (DBM) and the Commission on Audit 
(COA) 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) Tne 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 CAAP for the operation of airports and for 
others powers, duties and responsibilities that have been transferred to the 
Authority under this Act;
c) Any surplus income that may be derived from or shall accrue to the Authority 
upon its organization and its assumption of relevant assets and liabilities, or 
upon transfer to it of the relevant powers, duties and responsibilities pursuant 
to Section 23 of this Act, and from other concerned government agencies; 
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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.
Sec. 12. Contribution to the Genera! 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 l-und 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.
Sec. 13. Auditor. - The Chairman of the Commission on Audit (COA) 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 number 
and salaries of the auditor and said personnel shall be determined by the Chairman


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of COA subject to the rules and regulations of COA. Said salaries and ail 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 aiso submit such periodic or special reports as the Board 
may deem necessary.
Sec. 14. Legal Counsel. - The Government Corporate Counsel 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.
Sec. 15. Annual Report. - The Board shall submit to the President of the 
Philippines through DOTr, together with the audit report on the relevant accounts, 
an annual report generally dealing with the activities and operations of the Authority.
Sec. 16. Appl/cabil/t/ of Civil Service Laws. ~ The Authority and Its officials 
and employees shall be subject to the Civil Service Law and its rules and regulations.
Sec. 17. Borrowing Power. - The Authority may, in accordance with Section 
21, Article XII of the 1987 Constitution and other existing laws, rules and 
regulations, and after consultation with the Secretary of Rnance and with the 
approval of the President of the Philippines, as recommended by the Secretary of 
DOTr, 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 pricrity over any other claim or charge on the revenue and assets of 
the Autl .ority: Provided, Thut this provision shall not oe 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


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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 Rnance, may guarantee, in the name and on behalf of the Republic 
of the Philippines, the payinent of the loans or other Indebtedness of the Authority 
up to the amount herein authorized.
Sec. 18. 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) volume of traffic through the airports, 
subject to applicable laws, rules and regulations.
Sec. 19. 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 18 hereof, the Authority may, after complying with due process 
requirements and other formalities provided by law, impose lien on such aircraft 
equipment or furniture belonging to the owner or agent of said aircraft, until the 
amounts due have been paid.
Sec. 20. Fines and Penalties. - The Authoritv' 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 the rules 
and regulations which the Authority is hereby authorized to Issue for such purpose. 
The amount of fine shall not be less than One Thousand Pesos (Php 1,000.00) nor 
more than Twenty Thousand Pesos (Php20,000.00), and shall be subject to review 
and increase yearly as the Board may deem appropriate.
Sec. 21. Tax Exemptions. - The Authority shall be exempt from realty taxes 
imposed by the National Government or any of Its political subdivisions, agencies
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and instrumentalities; Provided, That no tax exemption herein granted shall extend 
to any subsidiary which may be organized by the Authority.
Sec. 22. Transfer of Power and Assets. - All powers, duties and rights vested 
by law and exercised by CAAP 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 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 c id revenues owned by or vested in CAAP in relation to the powers, duties 
and rights are herein transferred shall also be transferred to the Authority.
Sec. 23. Projects in Progress. - All on-going projects relating to the 
construction of airport facilities and supply of equipment shall be administered and 
undertaken by the Authorib/.
Sac. 24. 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 fa.:ilities, tangible assets an J completed projects within the 
airports, shall likewise be assumed by the Authority.
Sec. 25. Repealing Clause. - All laws, decrees, executive orders, letters of 
instructions, rules and regulations, or provisions thereof, which are contrary to, or 
inconsistent with the prox islons of this Act are hereby repealed, amended or 
modlfiec1 accordingly.
Sec. 26. Separability Clause. - If any clause, sentence, section or portion of 
this Act shall be held invalid or unconstitutional by a court of competent jurisdiction, 
such judgment shall not affect, impair or invalidate the other provisions, which shall 
remain in full force and effect.
Sec. 27. Effectivity Clause - This Act shall take effect within fifteen (15) after 
its complete publication In the Official Gazette or in at least two (2) national 
newspapers of general circulation.
Approved,
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