NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
Senate
of tl)r &rrrptnrj»
23 JAN 12 A9; :08
SENATE
S. No. 1654
REQeIVED BY;■'7f
,sy
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9497, OTHERWISE 
KNOWN AS CIVIL AVIATION AUTHORITY ACT OF 2008
EXPLANATORY NOTE
Republic Act 9497, otherwise known as the" Civil Aviation Act of2008', created 
the Civil Aviation Authorit/ of the Philippines (CAAP), which is mandated to set 
comprehensive, clear, and impartial rules for the aviation industry. Under the law, the 
CAAP shall be an independent regulatory body with quasi-judicial and quasi-legislative 
powers with corporate attributes.
Following the technical glitch that led to the disruption of flights on New Year's 
Day, the CAAP admits that the country's air traffic management system is outdated, 
there is a massive brain drain of qualified air traffic controllers as they chase more 
competitive paychecks abroad and there is compelling discussion on air traffic 
privatization.
This measure aims to address the deficiencies in the management of the civil aviation 
industry in the country by strengthening CAAP as the country's designated authority. 
Among the amendments under the proposed measure are to increase the term of the 
Director General (DG) to seven (7) years, exempt CAAP from the Salary 
Standardization Law (SSL) and enhance their fiscal autonomy.
Critical to the realization of the country's potential as a tourist and business 
destination, the reforms in civil aviation are necessary steps to attain this goal.
In view of ensuring safety and reliability of air transportation, the immediate 
passage of this bill is earnestly sought.
RAMON BONG REVILLA, JR.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
li% Senate
of tl)f fe>n-rrlan>
23 JAN \lr A9 -0
SENATE
S. No. 1854
RECEIVED 8Y:
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9497, OTHERWISE 
KNOWN AS 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 
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 A 
CONTRACTING STATE IN ALL RELEVANT TREATIES INCLUDING THE 
CHICAGO CONVENTION. THE AUTHORITY SHALL COORDINATE WITH 
OTHER GOVERNMENT AGENCIES IN ADVANCING AVIATION 
SECURITY IN THE PHILIPPINES.
TOWARD 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 
AIRTRANSPORT.


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IN VIEW OF ITS 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 and Communicotions (DOTC)] DEPARTMENT 
OF TRANSPORTATION 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 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, 
AND 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 I leaded by a ] APPOINTMENT AND TERM 
OF OFFICE OF THE 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 Pfesldent of the Philippines and] shall


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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 NO. 10149, [T]the Director General shall 
be appointed BY THE PRESIDENT OF THE PHILIPPINES based on the 
qualifications herein provided and shall have a [tenure] TERM of office for a 
period of [four (-1)] 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 [etgtrt
(8) 1 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 of Finance;
(d) The Secretary of Foreign Affairs;


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(e) The Secretary of Justice;
(f) The Secretary of the Interior and Local Government; [aod]
(g) The Secretary of the Department of Labor and Employment;
(H) THE SECRETARY OF TOURISM (PER SECTION 96 OF REPUBLIC 
ACT NO. 9593); AND
(I) THE SECRETARY OF NATIONAL DEFENSE.
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 CHAIRPERSON, AN UNDERSECRETARY OF THE [DGTG] DOTR 
SHALL BE DESIGNATED TO ACT AS CHAIRMAN: PROVIDED FURTHER, 
THAT IN THE ABSENCE OF THE DIRECTOR GENERAL, A 
REPRESENTATIVE FROM THE AUTHORITY SHALL BE DESIGNATED TO 
ACT AS VICE CHAIRPERSON: Provided, That, in the absence of the Director 
appointed in subsections (c) to [(g)] (I), the Director concerned shall designate 
with full power and authority, in writing, an officer in his department or office 
to act on [his] THEIR 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 [er 
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 bo given preference in the filling-up of plantilla positions
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


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EXEMPTED FROM THE REQUIREMENTS PRESCRIBED UNDER THE
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RULES GOVERNING THE CAREER EXECUTIVE SERVICE. ALL LAWS,
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RULES, AND REGULATIONS, GOVERNING POSITIONS,
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CLASSIFICATIONS AND QUALIFICATION STANDARDS INCLUDING,
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BUT NOT LIMITED TO, PRESIDENTIAL DECREE NO. 985, REPUBLIC
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ACT NO. 6758, AS AMENDED, JOINT RESOLUTION NO. 4 (2009 OF THE
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PHILIPPINE CONGRESS) AND REPUBLIC ACT NO. 10149."
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Sec. 6. Section 15 of the same Act is hereby amended to read as follows:
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"SEC. 15. Fiscal Autonomy. — The Authority shall enjoy fiscal autonomy. All
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money earned by the Authority from the coliection/levy of any and all such
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fees, charges, dues, assessments and fines it is empowered to collect/levy
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under this Act shall be used solely to fund the operations of the Authority.
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THE AUTHORITY SHALL LIKEWISE BE EXEMPTED FROM THE
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PROVISIONS OF REPUBLIC ACT NO. 7656 OR THE DIVIDEND LAW.
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THE 
INCOME GENERATED BY THE AUTHORITY FROM AIR
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NAVIGATIONAL CHARGES SHALL BE UTILIZED FOR COMPLIANCE
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WITH INTERNATIONAL STANDARDS OF SAFETY.
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The utilization of any funds coming from the collection and/or lew of the
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Authority shall be subject to the examination of the Congressional O'/ersight
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Committee (COCAAP). THE COCAAP MAY REQUIRE THE AUTHORITY TO
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SUBMIT, FURNISH OR PROVIDE ANY AND ALL DOCUMENTS IN
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RELATION TO THE UTILIZATION OF FUNDS OF THE AUTHORITY AND
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ANY OTHER NON-FINANCIAL DOCUMENTS RELATIVE TO THE DUTIES,
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FUNCTIONS, OPERATIONS OF THE AUTHORITY."
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Sec. 7. Section 18 of the same Act is hereby amended to read as follows:
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"SEC. 18. Compensation and Other Emoluments of Authority Personnel. -
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Within six (6) months from the effectivity of this Act, the Board shall determine the
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new schedule of salaries of the employees of the Authority subject to the compliance
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with the existing compensation laws AND REVISE THE SAME FROM TIME TO
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TIME AS IT MAY DEEM NECESSARY: Provided, That the Board shall determine


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and fix the compensation, EMOLUMENTS and fringe benefits of employees holding 
technicai positions [that arc not common to the other- agoncics of the government
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 in Republic Act 9497, 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, m 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 EFFFCTIVITY


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OF THIS ACT: PROVIDED, FINALL Yf THAT FUTURE MAi^DATORY 
INCREASES IN THE COMPENSATION OF THE 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 THFIR DUTIES, 
MAY BE INCREASED BY THE AUTHORITY ONLY IF IT HAS SUFFICIENT 
BUDGET FOR THE SAME AND IF IT WILL SERVF THE INTEREST OF THE 
AVIATION INDUSTRY AS A WHOLE."
Sec. 10. A new section 18-C is hereby inserted in Republic Act 9497, 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 sha'I have the following 
general powers;
XXX
(d) ANY LAW TO THE CONTRARY NOTWITHSTANDING, 
ORGANIZE, RE-ORGANIZE, AND [GJdetermine 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 ABOf JSH OFFICES 
AND POSITIONS, and adopt a rational compensation and benefits 
scheme EQUIVALENT TO THE STANDARDS SET BY THE 
INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO);


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the Director Gcncml, te-isstic subpoena ad testificandum-er- subpoena 
duces tecum requiring the attendance and testimony of witnesGes in any
matter or tequiry pending before the Board ond require the production
ef books, papers, contracts, agreements ond all other documents
submitted for purposes ef this section to -be under oath and verified by
the person in custody thercof-as-co the truth and correctness of data
appearing in such books, papers, tariffs^ centracts,
other documents;
proceeding, or investigation, pending before the Board at any stage of
such proceeding or investigation;-]
Xxx
[(j) Promulgate rules and regulations as may bo necessary in the interest
certificate including the licensing of operating and mechanical personnel, 
type certificate for aircraft, aircraft- engines, propellers and opplianccs,
aifworthinoGG certificates, air carrier operating eertificotes> air agency
eertificatCG, navigation facility and aerodrome certificates; air traffic
aids; aircraft accident inquiricG;-aerodromcsf both public and privote
owned; construction of obstructions-to aerodromes; height of buildings; 
aatennae and other edifices; registration ef aircrofts; search and rescue; 
facilitation of air transports; operations of aircrafts, both for domestic
m-relation to civil aviation; rules of the air; air traffic services; rules for
prevention of collision of aircrafts; identification of aircraft; ruler for sofe
governing other proctiees^-methods-and/or procedures-as the Director
Xxx


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[(m) Adopt--0 system for the-re§i5tfation of olferaft as hereinafter 
provided;]
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General of-on application of o private-person, grant exemption from the
tt:tts-Act: Provided, Thot said grant of exemption is not prejudicial to flight 
safety;
and the public for the sofe transport of-goods and materials by air
pursuant -to intcrnattonal 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 possengers and oil
property intended to be carried in the aircraft cabin in commercial air
transport bo screened by weapon detecting procodure or facilities
foreign air operator prior to boarding the aircraft for suetKransportotion;
necessary to protect persons and property aboard aircraft operoting in
commercial air transpert-agoinst oets-of criminal- violence and aircraft
piracy; and
(3) To the extent practicable, require-uniform procedures for the
eemmercial air transport and intornationol commercial oir transport to
assure their safety arn^-te assure that thcy-wHI recGive courteous and
(Q) APPROVE POLICY ON LOCAL AND FOREIGN TRAVEL, AND 
THE CORRESPONDING EXPENSES, ALLOWANCES, PER DIEMS 
OF OFFICERS, EMPLOYEES, AGENTS OF THE AUTHORITY,


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NOTWITHSTANDIWIG THE PROVISIONS OF PRESIDENTIAL 
DECREE NO. 1177, EXECUTIVE ORDER 292, EXECUTIVE ORDER 
248, AS AMENDED, EXECUTIVE ORDER 2S8, 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, 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 ilMAYIG ABLE 
AIRSPACE."
Sec. 12. Section 25 is hereby amended to read as foDows:
"SEC. 25. Issuance of Rules and Regulations. - The [Board-, in eensiiitetten-^A/ith 
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.
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Sec. 13. Section 26 of the same Act is herelay amended to read as follows: 
"SEC. 26. Setting of Charges and Fees. - The Board, after consultation with the 
Director Generai, and after pubiic hearing, shall determine, fix, impose, coliect 
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 foilows: 
"SEC. 27. Issuance of Rules of Procedure and Practice. - The [Board may 
authorize the] Director Generai [te] 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-ether] TO 
IMPLEMENT THE REGULATORY issuances of the ICAO.
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 -
of the Director General, shall have the power to:
(a)- Review/ confirm, modify, revise, amend or reverse, as the-easemay
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compromise, as the case may
beHmpositionG by the Director General -of liens on personal-and real
or those who-have failed to perform their- obligations pursuarrt: to-rules
In no case that the Director Genera! shall participate in the hearing and
adjudicotion of an-appealed-case-befere the Board where the subject of
appeal is a judgment or-oecision- r-endcred-Py-hls-officc. In such a case,-
judgment or decision of -the Director- General- can- Oe -modified--nr
reversed.]
ALL DECISIONS, RULINGS, RESOLUTIONS OF THE BOARD AND 
THE DIRECTOR GENERAL ARE APPEALABLE TO THE COURT OF 
APPEALS."
Sec. 16. 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; EXFPXISE
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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 he issued only 
to aircrafts registered under the provisions of this Act.
AN AIR OPERATOR CERTIFICATE HOLDER MAY OPERATE AND 
USE FOREIGN-REGISTERED AIRCRAFTS: 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 mBIE, AND 
SUBJECT TO SUCH RULES AND REGULATIONS PROMULGATED 
BY THE AUTHORITY.
(F) PROMULGATE RULES AND REGULATIONS AS MAY BE 
NECESSARY IN THE INTEREST OF SAFFTY 7M AIR COMMERCE 
PERTAINING TO THE ISSUANCE OF THF AIRMAN'S 
CERTIFICATE INCLUDING THE LICENSING OF OPERATING AND 
MECHANICAL PERSONNEL, TYPE CERTIFICATE FOR AIRCRAFT, 
AIRCRAFT ENGINES, PROPELLERS AND .APPUANCFS, 
AIRWORTHINESS CERTIFICATES, AIR CARRIER OPERATING 
CERTIFICATES, AIR AGENCY CERTIFICATES, NAVIGATION 
FACILITY AND AERODROME CERTIFICATES; AIR TRAFFIC 
ROUTES; RADIO AND AERONAUTICAL TELECOMMiJNICATIONS 
AND AIR NAVIGATION AIDS; AIRCRAFT ACCIDENT INQUIRIES; 
AERODROMES, BOTH PUBLIC AND PRIVVrE-OWNFD; 
CONSTRUCTION OF OBSTRUCTIONS TO AERODROMES; 
HEIGHT OF BUILDINGS; ANTENNAE AND OTHER EDTFICFS; 
REGISTRATION OF AIRCRAFTS; SEARCH ANFv RESCUE; 
FACILITATION OF AIR TRANSPORTS; OPERATIONS OF
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AIRCRAFTS, BOTH FOR DOMESTIC AND INTERNATIONAL, 
INCLUDING SCHEDULED AND [MON-SCHEDULED; 
METEOROLOGY IN RELATION TO CIVIL AVIATION; RULES OF 
THE AIR; AIR TRAFFIC SERVICES; RULES FOR PREVENTION OF 
COLLISION OF AIRCRAFTS, IDENTIFICATION OF ATPCRAFT; 
RULES FOR SAFE ALTITUDES OF FLIGHT; AND SUCH OTHER 
RULES AND REGULATIONS, STANDARDS GOVERNING OTHER 
PRACTICES, METHODS AND/OR PPOCFOURFS 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 17. Section 40 of the same Act is hereby amended to read as follows;
"SEC. 40. Creation of Flight Standards inspectorate Service. - (a) [The 
Beard, other than the offices it shall crcotc ii
shall establish a permoeent- office 
Inspectorate Service (FSIS) that wilij assist the Director General in 
carrying out the responsibilities of his ofOce for certification and ongoing 
inspections of aircraft, airmen and air operators.
The FLIGHT STANDARDS INSPECTORATE SERVICE (FSIS) shall 
perform the following functions:
(1) Airworthiness inspection;
(2) Flight operations inspection and evaluation; and
(3) Personnel licensing." [TitHThefanoFerthe4^0afd-chatt^efeate7--but--net 
timitcd to, the following-offices-which will provide-support to the 
functions of the FSIS, namely; Aircraft Registration, Aircraft EngincGring
and Standards-, Airmen Examination Board and 9
Surgeon.]
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Sec. 18. Section 73 of the same Act is iiei eby amended to read as follows:
"SEC. 73. Statutory Lien AND POWER TO DETAIN. - The Director
by- law,] shail 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. 19. 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 court of competent jurisdicdon after thefiiing 
of a proper criminal complaint by an air operator, airman, or crew 
member."
Sec. 20. 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 EXECUTIONS, ORDERS OR 
PROCESSES."
Sec. 21. Section 91 of the same Act is hereby amended to read as follows:
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"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 ChaTman 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 Authorib/; 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 THEIR REPRESENTATIVE IS 
AUTHORIZED TO SIT AS AN OBSERVER IN ANY OF THE MEETING OR 
FUNCTION OF THE BOARD. The Congressional Oversight Commitree 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. 22. 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 9497, shall remain with the authority until the airport governing authority 
tasked to implement these functions is established not more than one (.1) year from 
the effectivity of this Act.
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AH 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 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. 23. Separability Clause. - If any part or provision of this Act shall be 
declared invalid or unconstitutional, the other provisions hereof not affected shall 
continue to be in full force and effect.
Sec. 24. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule, or regulation contrary to or 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended 
accordingly.
Sec. 25. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette ox in two (2) newspapers of general circulation 
in the Philippines.
Approved,
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