AIR LAW - series of rules governing the use of airspace and its benefits for ▪ Targeting key industry

ing key industry priorities

aviation, the general public and the nations of the world. ▪ Driving industry change
Aviation Law/Navigation Law – outdated ▪ Reducing costs
Air Transportation Law – being used but the areas it covers are only conveying ▪ Communication campaigns
a narrow interpretation. ▪ Training and other services

ICAO: INTERNATIONAL CIVIL AVIATION ORGANIZATION AAPA: ASSOCIATION OF ASIA-PACIFIC AIRLINES

• Established December 7, 1944 by the states. Specialized agency of the Primary Objective:
UN that regulates the technical aspect of civil aviation. • To serve as a common forum for articulating views on issues and issues
• Headquarters: Montreal, Quebec, Canada of common interest to the aviation industry in the Asia-pacific region
• SARPs and policies to ensure that local civil aviation operations and • To foster close cooperation with other related stakeholders
regulations comply with global standards. • To promote the sustainable growth of the travel and tourism sector as a
key contributor to economic, social and cultural growth.
Machine-Readable Travel Document (MRTD) Software - addresses travel • Very similarly structured as IATA but also different because of the
document protection. The worldwide standard for machine readable passports prevailing regional consensus, which often is different from the other
(MRPs). regions’ positions.
• Assembly of Presidents held every year.
Principles and Functions
▪ Regulating air navigation Sixteen Member Airlines:
▪ Encouraging the development of airways, airports and air navigation
facilities
▪ Installation of navigation facilities by contracting states
▪ Facilitation of air transport by the reduction of customs and immigration
formalities
▪ Avoiding discrimination between Contracting States (even Financial)
▪ Promoting the safety of flight in international aviation

The Assembly - The sovereign body of ICAO. Meets at least once every three
years and is convened by the Council.
The Council – Composed of 36 Contracting States elected by the Assembly
for a three-year term. The Council is the permanent governing body of ICAO.
The Commissions and Committees – Composed of members appointed by
the Council from nominations of contracting states or elected from amongst
Council members.
▪ The Air Navigation Commission
▪ The Air Transport Committee
▪ The Legal Committee
▪ The Committee on Joint Support of Air Navigation Services
▪ The Personnel Committee
▪ The Finance Committee
▪ The Committee on Unlawful Interference
▪ Air Navigation Commission - proposes, formulates and finalizes the
SARPs and presents them for adoption by the Council.
The ICAO Secretariat – Divided into sections, each corresponding to a
Committee, and supplies technical and administrative aid to the Council.
ICAO Programs and Services:
▪ Air Navigation Services
▪ Air Transport Services
▪ Legal Services
▪ Security Services
Definition of Terms:
▪ Contracting State - any state which is party to the Chicago
Convention on 1944.
▪ High Seas - the areas of sea outside the territorial limits of any State.
▪ State of Registry - State on whose register the aircraft is entered.
▪ Scheduled Flight - internationally agreed routine flight.
▪ Cabotage - an internal (domestic) scheduled commercial air transport
of other state of registry.
▪ Standard - any specification for physical characteristics, configuration,
▪ material, performance, personnel or procedure, the uniform application
of which is recognized as necessary.”
▪ Recommended Practice - “Any specification for physical
characteristics, configuration, material, performance, personnel or
procedure, the uniform application of which is recognized as desirable
in the interests of safety, regularity or efficiency of international air
navigation.”
Four Committees:
▪ Airline Services Committee (ASC) - efficiencies in commercial and
cargo of Member Airlines.
▪ Aviation Policy Committee (APC) - aero political issues.
▪ Security Committee (SC) - safeguard airline operations.
▪ Technical Committee (TC) - enhance cooperation among members.
- Engineering and Maintenance Working Group (EMWG)
- Flight Operations and Safety Working Group (FOSWG)
- Materials Management Working Group (MMWG).
FAA: FEDERAL AVIATION AUTHORITY
• Agency of the United States Department of Transportation responsible
for the regulation and oversight of civil aviation within the U.S
• Promote aviation safety and establish safety standards for civil aviation
thru CFR.
Headquarters: Washington, D.C
9 Regional Offices:
MMAC: Mike Monroney Aeronautical Center in Oklahoma City,
Oklahoma - FAA training, logistics services, aviation safety-related and
business support services.
WJHTC: William J. Hughes Technical Center in Atlantic City, New
Jersey - aviation research and development and test and evaluation facility.
National Transportation Safety Board (NTSB) – Investigates aviation
incidents, accidents and disasters.
EASA & FAA - two main agencies world-wide responsible for the certification
of aircraft.
CFR: The Code of Federal Regulations - codification of the general and
permanent rules published by the executive departments and agencies of the
United States Government. 50 different codes called Titles, that represent
broad areas subject to Federal regulation.
Title 14 CFR Chapter 1: Federal Aviation Administration – Broken down.

IATA: INTERNATIONAL AIR TRANSPORTATION ASSOCIATION

• Established 15 April 1945 in Havana, Cuba with 57 members but now
carrying 82% (290) airlines of total air traffic in 120 countries. Regulates
the economic aspect of civil aviation and help formulate industry policy on
critical aviation issues.
• open to airlines operating scheduled and non-scheduled air services that
maintain an IATA Operational Safety Audit (IOSA) registration.
Headquarters: Montreal, Quebec, Canada
Mission: Represent, lead, and serve the airline industry.

IATA Membership Benefits:

▪ International recognition and lobbying
Organization of the FAA
▪ Managed by Administrator assisted by a Deputy Administrator.
▪ 5 Associate Administrators report to the Administrator and direct the
line-of-business organizations that carry out the agency’s principle
functions.
▪ Chief Counsel and 9 Assistant Administrators also report to the
Administrator. The Assistant Administrators oversee other key
programs such as Human Resources, Budget, and System Safety.
Key Activities:
▪ Safety Regulation
▪ Airspace and Air Traffic Management
▪ Air Navigation Facilities
▪ Civil Aviation Abroad
▪ Commercial Space Transportation
▪ Research, Engineering, and Development
ASI: Aviation Safety Inspector - Administers and inspects. Trained at FAA
Academy in Oklahoma City, Oklahoma, which includes airman evaluation, and
pilot testing techniques and procedures. There are 3,700 inspectors
FAASTeam: FAA Safety Team - convey safety principles and practices
through training, outreach, and education. Replaced the Aviation Safety
Program (ASP), whose education of airmen on all types of safety subjects
successfully reduced accidents.
FAA Reference Material:
Aeronautical Information Manual (AIM) – official guide to basic flight
information and ATC procedures for the aviation community flying in the NAS
of the United States.
Handbooks - developed to provide specific information about a particular
topic that enhances training or understanding.
Advisory circulars (ACs) - provide a single, uniform, agency- wide system
that the FAA uses to deliver advisory material to FAA customers, industry,
the aviation community, and the public.
Three parts of AC number:
1. Identifies the subject matter area of the AC and corresponds
to the 14 CFR part.
2. Number beginning with the dash identifies this sequence (ACs
are numbered sequentially).
3. Letter assigned by the originating office and shows the revision
sequence if an AC is revised (The first version of an AC does
not have a revision letter)
Flight Publications - orchestrates the publication and changes to
publications that are key to safe flight. Figure 10 illustrates some publications
a pilot uses.
EASA: EUROPEAN AVIATION SAFETY AGENCY
Mission: Promote the highest possible level of safety and environmental
protection in civil aviation. It facilitates the free movement of goods, persons
and services, promotes cases for regulatory and certification processes and
assists Member States in meeting their obligations under ICAO.
• EU’s agency that looks after flight safety.
• September 2003. Based in Cologne, Germany.
Responsibilities:
▪ Provide technical expertise to the EU for new legislation.
▪ Implement and monitor the implementation of security policies
including conducting inspections in Member States.
▪ Carry out the certification of aircraft and equipment.
▪ Issue licenses to organizations providing the design, manufacture and
maintenance of aeronautical products.
▪ Allow operators of third countries (those outside the EU).
▪ Perform research and analysis into safety.
CONVENTIONS
Chicago Convention (1944)
Goal: Establish a fundamental law that would give full recognition of the
sovereignty and juridical equality of all nations. Help to create and preserve
friendship and understanding among the nations.
• Franklin Roosevelt of US
• International Civil Aviation Conference
• 54 out of 55 States
• Philippines: Secretary of Finance Jaime Hernandez represent with
Urban Zafra, Colonels Jesus Villamor, and Manuel Nieto and Joseph
Foley as members.
• signed at convention on December 7, 1944 to take effect on April 4,
1947.
• As of March 2019, there are 12,000 international SARPs agreed 193
Member States of ICAO.
• Contracting states were required to undertake to secure the highest
degree of uniformity in complying with international standards and
practices
Significant Document: The International Air Transport Agreement (Five
Freedoms Agreement) - only to civil aircraft engaged in scheduled air services.
Outcome of the Convention:
1. Interim Agreement on International Civil Aviation
2. The Convention on International Civil Aviation
3. The International Air Services Transit Agreement
4. The International Air Transport Agreement
Paris Convention (October 13, 1919)
Each nation has the right to deny entry and regulate flights since it has absolute
sovereignty over the airspace and should apply its airspace rules equally to its
own.
• Aircraft of contracting states are to be treated equally in the eyes of
each nation's law. Aircraft must be registered to a state, and they
possess the nationality of the state in which they are registered.
• 32 allies & 34 articles covered the reservation of sovereignty of
airspace by the contracting nations.
Warsaw Convention (1929)
Unification of certain rules relating to international transportation by air applies
to any international transportation of persons, baggage or merchandise by
aircraft compensations.
• Air carrier was liable for damages sustained by:
- Death or injury to the passengers
- Destruction, loss or damage to baggage or goods
- Loss resulting from delay in the transportation of passengers,
baggage or merchandise
• Responsibilities and liabilities of the carrier and the agents of aircraft
together with matters of compensation for loss of life or injury to
passengers; delays, and loss of the baggage.
• The loss, irregularity or absence of a ticket/note does not affect the
existence or the validity of the contract.
Rome Convention (1952)
Damage caused by foreign aircraft to third parties on the ground. It permits a
claimant to pursue a claim against a foreign operator through the Court in the
state of residence. Any resulting judgement would then be enforceable in the
state of the Operator.
Tokyo Convention (1963)
Provides that the State of Registration of an aircraft is competent to exercise
jurisdiction over offences and acts committed o board.
• The aircraft commander and others are empowered to prevent such
acts being committed and to deliver the person concerned to the
appropriate authority.
• States party to the convention are obliged to take all appropriate
measures to restore and preserve control of the aircraft to its lawful
commander.
Hague Convention (1970)
Convention for the Suppression of Unlawful Seizure of Aircraft
• Denies the act of hijacking: Contains detailed provisions on the
establishment of jurisdiction by states over the offense; on taking of the
offender into custody; and on the prosecution or extradition of the
offender.
Montreal Convention (1971)
Convention for the Suppression of Unlawful Acts against the Safety of Civil
Aviation. Came into force on January 26, 1973.
For example:
▪ Acts of violence on board which endanger people and property and
safety of the aircraft.
▪ The destruction of an aircraft in service or causing damage which
renders it incapable of flight or which is likely to endanger its safety in
flight.
▪ Placing in an aircraft any device likely to destroy, damage or render
unfit for flight any aircraft.
▪ Destroying or damaging any air navigation facility or interference with
its correct operation.
▪ The communication of information known to be false which endangers
the safety of an aircraft in flight.
Protocol Supplementary to the Montreal Convention - Included specified
acts of violence at airports serving international civil aviation:
▪ International and unlawful use of any device, substance or weapon.
▪ Destroy or seriously damage the facilities of an airport.
▪ Destroy or seriously damage aircraft not in service at the airport.
▪ Disrupt the services at an airport.
 ANNEXES OF CONVENTION
Annex 1 – Personnel Licensing
Based on SARPs, includes:
• Flight Crew Members (Pilots, Flight Engineers)
• Air Traffic Controllers
• Maintenance Technicians
Licensing - act of authorizing defined activities which should otherwise be
prohibited due to the potentially serious results of such activities being
performed improperly. Requires:
▪ Periodic Health Examinations.
▪ Adequate Personnel Training and Licensing.
Licensing Examination – serves as a regular test of physical fitness and
performance ensuring independent control.
Applicant for a License – must meet certain stated requirements proportional
to the complexities of the task to be performed.
Annex 2 – Rules of the Air
• Applied without exception over the high seas, and over national territories
to the extent that they do no conflict with the rules of the State being
overflown.
• The pilot-in-command is responsible for compliance with rules of the air.
• Aircraft must fly according to general rules and either the VFR or the IFR.
Visual Flight Rules - permitted if a flight crew is able to remain clear of clouds
by a distance of at least 1,500 m horizontally and at least 300 m (1,000 ft)
vertically and to maintain a forward visibility of at least 8 km.
Less Stringent Requirements:
▪ Some portions of the airspace
▪ At low altitudes
▪ For helicopters
Aircraft cannot be flown under VFR if (except by special permission):
▪ At night
▪ Above 6,100 m (20,000 ft)
▪ Unmanned Free Balloons - flown only under specified conditions
detailed in the Annex
Instrument Flight Rules - Complied with in weather conditions other than
those mentioned above. Most airliners fly under IFR at all times.
▪ State may also require to apply in designated airspaces regardless of
weather conditions.
▪ Pilot may choose to apply them even if the weather is good.
To fly under IFR: Aircraft must be equipped with suitable instruments and
navigation equipment appropriate to the route to be flown.
When operating under air traffic control: Aircraft must maintain precisely the
route and altitude that have been assigned to it and keep air traffic control
informed about its position.
Flight Plan - Must be filed with air traffic services units for all flights that will
cross international borders and for commercial operations. Provides
information of:
▪ Aircraft's identity and equipment
▪ Point and time of departure
▪ Route and altitude to be flown
▪ Destination
▪ Estimated time of arrival
▪ Alternate airport to be used should landing at destination be
impossible.
▪ specify whether the flight will be carried out under visual or instrument
flight rules.
Principle of See-And-Avoid - pilots are responsible for avoiding collisions
when in visual flight conditions
Flights operating under IFR - Kept separated by air traffic control units or
provided with collision hazard information.
Right-of-way Rules:
▪ When two aircraft are converging at approximately the same level, the
aircraft on the right has the right of way except that airplanes must give
way to airships, gliders and balloons, and to aircraft which are towing
objects.
▪ An aircraft which is being overtaken has the right of way and the
overtaking aircraft must remain clear by altering heading to the right.
▪ When two aircraft are approaching each other head on they must both
alter heading to the right.
Annex 3 – Meteorological Service for International Air Navigation
• Provide necessary meteorological information to operators, flight crew
members, air traffic services units, search and rescue units, airport
management and others concerned with aviation.
• Close liaison is essential between those supplying meteorological
information and those using it.
Meteorological Office - supplies meteorological information to aeronautical
users. Prepare warnings of hazardous weather conditions.
States - Provides suitable telecommunications facilities, meteorological
briefings carried out using automated systems to assist pilots with their flight
planning.
Aerodrome
▪ Reports include surface wind, visibility, runway visual range, present
weather, cloud, air and dew-point temperature and atmospheric
pressure, and are issued either half-hourly or hourly.
▪ Forecasts include surface wind, visibility, weather, cloud and
temperature, and are issued every three or six hours for a validity
period of 9 to 24 hours. Forecasts are kept under continuous review
and amended by the meteorological office concerned, as necessary.
▪ Complemented by special reports whenever any parameter changes
beyond pre-fixed limits of operational significance.
Landing Forecasts - Prepared for some international aerodromes that contain
expected conditions over the runway complex in regard to surface wind,
visibility, weather and cloud to meet requirements of landing aircraft. Have a
validity of two hours.
Aircraft in Flight - Required to report severe weather phenomena
encountered in route. Reports are disseminated by the air traffic services units
to all aircraft concerned.
- Routine observations of upper winds and temperatures on most
international routes, it will be automated using the air-ground data link
communications which will be used in the development of forecasts.
All Flights - require advance and accurate meteorological information so as to
chart a course that will permit them to make use of the most favorable winds
and conserve fuel.
World Area Forecast System (WAFS) - provide States and aviation users
with standardized and high-quality forecasts on upper-air temperature,
humidity and winds and on significant weather. Based on two world area
forecast centers which use the most up-to-date computers and satellite
telecommunications (ISCS and SADIS) to prepare and disseminate global
forecasts in digital form directly to States and users.
Annex 4 – Aeronautical Charts
Aeronautical Charts - Provide the 2D information common in most maps and
portray 3D air traffic service systems. Reference to them for planning, air traffic
control and navigation purposes
Global Standardized: for uniformity and consistency.
Then – 7 ICAO chart types: 53 amendments to update.
Now – 21 types: intended to serve specialized purposes
Three Series of Charts:
Aeronautical Navigation Chart — provide a general-purpose chart series
suitable for long-range flight planning.
World Aeronautical Chart — ICAO 1: 1 000 000 charts provide complete
world coverage with uniform presentation of data at a constant scale, and are
used in the production of other charts.
Aeronautical Chart — ICAO 1:500 000 series supplies more detail and
provides a suitable medium for pilot and navigation training. This series is
most suitable for use by low-speed, short- or medium- range aircraft
operating at low and intermediate altitudes.
Enroute Chart — ICAO: portrays the air traffic service system, radio
navigation aids and other aeronautical information essential to en-route
navigation under instrument flight rules.
Plotting Chart — ICAO: means of maintaining a continuous flight record
of aircraft position and is sometimes produced to complement the more
complex enroute charts.
 Area Chart — ICAO: Provides pilots with information to facilitate the
transition from enroute phase to final approach phase
Annex 5 – Units of Measurement to be used in Air and Ground Operations
The question of the units of measurement to be used:
ICAO table of units - metric system but also contained four additional interim
tables of units for use by those States unable to use the primary table.
International System of Units - basic standardized system to be used in civil
aviation
Addition: liter, the degree Celsius, the degree for measuring plane angle,
nautical mile, knot, foot when measuring altitude, elevation or height only
Annex 6 – Operation of Aircraft
Operation of aircraft engaged in international air transport must be as
standardized as possible to ensure the highest levels of safety and efficiency.
Pilot-In-Command - final responsibility to make sure that flight preparation
is complete and conforms to all requirements.
Operators - establish rules limiting the flight time and flight duty periods for
flight crew members. Provide adequate rest.
Annex 7 – Aircraft Nationality and Registration Marks
Contracting States - apply standard procedures for registration. It included
the format of registration marks and nationality symbols, including the size and
where these signs are to be displayed on aircraft.
First Amendment – rotorcraft: modified requirements related to the location of
nationality and registration marks on wings
Second Amendment: Aircraft: all air-cushion-type vehicles, such as
hovercraft and other ground-effect machines, should not be classified as
aircraft.
Third Amendment: Common Mark, Common Mark Registering Authority and
International Operating Agency - enable aircraft of international operating
agencies to be registered on other than a national basis. series of symbols
included in the radio call signs allocated by the International
Telecommunication Union (ITU)
Fourth Amendment: Provisions related to registration and nationality marks
for unmanned free balloons.
Fifth Amendment: New requirement for the Certificate of Registration to carry
an English translation if issued in a language other than English.
Annex 8 – Airworthiness of Aircraft
Part I: Definitions
Part II: Procedures for certification and continuing airworthiness of aircraft
Part III: Technical requirements for the certification of new large airplane
designs
Part IV: helicopters.
• Standards would not replace national regulations and that national codes
of airworthiness.
• Each State is free to develop own comprehensive and detailed code of
airworthiness or to select, adopt or accept a comprehensive and detailed
code established by another Contracting State.
• Contracting States provide a Certificate of Airworthiness for each
registered aircraft.
Annex 9 – Facilitation
- Derived from provisions of Chicago Convention.
- Require that the civil aviation community comply with laws governing
the inspection of aircraft, cargo and passengers by authorities
concerned with customs, immigration, agriculture and public health.
Annex 10 – Aeronautical Telecommunications
Contains Standards and Recommended Practices and guidance material for
the global navigation satellite system (GNSS), navigation aids such as
instrument landing system (ILS), microwave landing system (MLS), VHF
omnidirectional radio range (VOR), non-directional radio beacon (NDB) and
distance measuring equipment (DME).
Annex 11 – Air Traffic Services – Air Traffic Control Service, Flight
Information Service, and Alerting Service
Divided into five volumes:
Vol. I: Radio Navigation
Vol. II: Communications Procedures including those with PANS status
Vol. III: Communication Systems
Part 1 — Digital Data Communication Systems
Part 2 — Voice Communication Systems
Vol. IV: Surveillance Radar and Collision Avoidance Systems
Vol. V: Aeronautical Radio Frequency Spectrum Utilization
Annex 12 – Search and Rescue
The performance of distress monitoring, communication, coordination and
search and rescue functions, initial medical assistance or medical evacuation,
through the use of public and private resources, including cooperating aircraft,
vessels and other craft and installations.
Annex 13 – Aircraft Accident and Incident Investigation
• States shall investigate or delegate the investigation of accidents which
have occurred in their territory.
• Serious incidents should be investigated by States or by other
organizations, such as dedicated accident/incident investigation bodies
or aviation service provider organizations.
Annex 14 – Aerodromes
Extends from the planning of airports and heliports to such details as switch-
over times for secondary power supply; from civil engineering to illumination
engineering; from provision of sophisticated rescue and firefighting equipment
to simple requirements for keeping airports clear of birds
• Applicable to all airports open to public use in accordance with the
requirements of Article 15 of the Convention.
Annex 15 – Aeronautical Information Services
• To ensure the flow of information necessary for the safety, regularity and
efficiency of international air navigation.
• defines how an aeronautical information service shall receive and/or
originate, collate or assemble, edit, format, publish/store and distribute
specified aeronautical information/data.
Annex 16 – Environmental Protection
Deals with the protection of the environment from the effect of:
▪ Aircraft Engine Emissions
▪ Aircraft Noise
Annex 17 – Security: Safeguarding International Civil Aviation Against Acts
of Unlawful
How to safeguard the industry against acts of unlawful interference. The
manual offers a guide to assist each contracting state in the implementation of
their own national Civil Aviation Security Program in accordance with ICAO.
Annex 18 – The Safe Transport of Dangerous Goods by Air
• Sets down broad principles but one of the Standards requires that
dangerous goods are carried in accordance with the Technical
Instructions for the Safe Transport of Dangerous Goods by Air
• States are required by Annex 18 to have inspection and enforcement
procedures to ensure that dangerous goods are being carried in
compliance with the requirements.
Annex 19 – Safety Management
Modern safety management principles lead to safety risks being addressed
more strategically by regulators and aviation service providers. Since air traffic
is projected to increase significantly in the next 15 years, safety risks must be
addressed proactively to ensure that this significant capacity expansion is
carefully managed and enabled through strategic regulatory and infrastructure
developments.
PHILIPPINE REGULATORY FRAMEWORK
April 30, 1919 - UK issued the first airworthiness and registration requirements
in the world.
UK - among the forerunners in commercial aviation, having organized aircraft
and engine manufacturers and growing general aviation and operating airlines.
July 1917 - Militia Act passed creating Philippine National Guard with a built-
in aviation unit. Under this act, the first batch of Filipino military pilots was
trained.
October 8, 1917 – Gov. Gen. Francis B. Harrison organized the Aero Club of
the Philippines and push to establish the first government-owned airline of the
country.
July 7, 1920 - Council of State approved to establish of the Philippine Air
Service: first government airline.
Philippine Air Services, Inc. (PASI) - Private airline owned by Joseph
Stevenot and Alfred Croft that shut down after only about a year of operation
for lack of patrons.
February 1921 - Militia Commission confirmed appointments of officers and
pilots for the Philippine Air Service (PAS) as the Philippine Assembly approved
its budget in the General Appropriations Act of 1921.
FIRST CIVIL AIR REGULATIONS DURING THE COLONIAL ERA
1927 - US big five in the airline industry were established - United Airlines,
Transcontinental, and Western Airlines (later become Trans World Airlines),
American Airlines, Eastern Air Lines, and Pan American Airways.
 Philippines was setting up its airlines:
1927 – Philippine Airways (renamed Philippine Airlines in 1941)
1929 – Aviation Corporation of the Philippines and Compania Aerea
1930 – Philippine Aerial Taxi Company (PATCO)
1932 – Iloilo-Negros Air Express Company (INAEC): first Filipino-owned airline
The government body and a set of regulations control these airlines.
November 20, 1931 – the Philippine Assembly passed Act 3909, the Air
Commerce Act, which directed the Secretary of Public Work and
Communications to create a division that would regulate air commerce and
develop air transport faster. It included licensing of Civilian pilots, among
others.
December 31, 1931 – Malacañang announced the implementation of pilot
licensing in accordance with the provision of Act 3909.
March 31, 1932 – Governor-General Roosevelt formed a new aviation
committee to study aeronautical expansion, make a definite program for the
development of airfields, look into ways and means of fostering commerce,
establish a system of airways for airmail in the islands.
December 9, 1932 – Act 4033 was approved; the law amended act of 3909
and required that a commercial aviation operator must have a legislative
franchise.
September 1933 – Governor-General Frank Murphy vetoed the bills to grant
franchises to INAEC and PATCO with rights to provinces of Cebu, Zamboanga,
Negros Oriental, Iloilo, Benguet, Jolo, and Rizal in accordance with Act 4033.
October 1, 1934 – the Department of Finance and of Public Works and
Communications jointly issued rules and regulations for the entry and
clearance of aircraft in the Philippines. Two aviation bills passed in the
legislature, Act 4193 appropriated for the construction, operation, and
maintenance of airfield and the other created an aviation unit in the Philippine
Constabulary.
November 12, 1936 – Commonwealth Act 168 was enacted; it established the
Bureau of Aeronautics.
LAWS AND REGULATIONS UNDER THE MARTIAL LAW REGIME (After
War)
June 20, 1952 – Republic Act 776: Civil Aeronautics Act of the Philippines -
provided for the basic framework within which commercial aviation should
operate in the Philippines. It reorganized CAB and CAA)and defined their
powers and duties over commercial aviation in the country. The act underwent
several revisions after that.
1959 - Republic Act 2232 designated PAL as the country’s national flag carrier
for security and national defense and international commerce.
Philippine Airlines - government owned and only airline of the country until
the mid-1960s
Filipinas Orient Airways (FOA) & Air Manila, Inc. (AMI) challenged its
primacy in a ruinous competition that resulted in losses for all three and raised
government concerns of being exposed in guaranteeing aircraft purchases and
leases of the airlines.
November 1973 – President Ferdinand Marcos issued a Letter of Instructions
151 (LOI) to rationalize the airline industry and to have one airline only for both
domestic and international.
December 12, 1973 – President issued LOI 151A, which enumerated several
action items to implement the mandate of LOI 151.
June 11, 1978 – President Marcos issued Presidential Decree 1462, which
amended certain sections of RA 776 (Civil Aeronautics Board) and Presidential
Decree No. 1466 (Philippines’ Flag Law)
LIBERALIZATION OF PHILIPPINE CIVIL AVIATION (After People Power)
August 16, 1988 - President Aquino issued Executive Order 333 on, revoking
LOI 151 and 151A. The issuance of EO paved the way for the current
competitors of PAL to set up operations eight years later.
July 19, 1987 - RA 776 was amended through EO 217: Designated the
Secretary of Transportation and Communications as Chairman of the CAB.
January 3, 1995 - President Fidel V. Ramos issued EO 219, which designated
the domestic and international civil aviation liberalization policy of the country.
The EO
▪ Strengthened the regulatory powers of the CAB in setting tariffs and
fates and approval of flight frequencies and capacities.
▪ Allowed the flourishing of new domestic carriers.
▪ Contemplated easing the entry of competition, it does not foster open
skies policy that would have allowed unbridled entry of foreign carriers
into the country.
The implementing procedures of the RP aviation regulations as enunciated in the
EO requires that Exchange of traffic rights and routes… shall be based on:
a. National interest
b. Reciprocity
c. Exchange of rights, freedoms, and opportunities of equal and equivalent
values
Major provisions of the EO specified the composition of the Philippine Negotiating
Panel in Air Traffic Rights Negotiation as follows:
a. Country’s National Flag Carrier
b. National Carriers
c. DFA
d. Representatives of CAB
e. Other persons that the President may authorize.
March 10, 2004 - President Gloria Macapagal Arroyo issued Executive Order
No. 196 amending EO No. 219 of President Ramos that established the domestic
and international Civil Aviation Liberalization Policy - The amendment
restored the airlines as part of the Philippine Negotiating Panel with one
representative each.
CIVIL AIR REGULATION STRUCTURE TODAY
Department of Transportation (DOTr)
• Established under the Malolos Constitution on January 21, 1899
• Executive branch department of the Philippine government responsible
for the transportation systems (land, air, and sea communications
infrastructure)
Functions:
▪ Policy formulation
▪ Industry/ services regulation
▪ Infrastructure development
▪ International cooperation
Civil Aeronautics Board (CAB)
• Regulate the economic aspect of air transportation, and shall have the
general supervision, control and jurisdiction over air carriers, etc.
• Attached agency of the department of transportation (DOTR)
Civil Aviation Authority of the Philippines (CAAP)
• Formerly Air Transportation Office
• Independent regulatory body attached to the Department of
Transportation for the purpose of policy coordination.
• National aviation authority of the Philippines and is responsible for
implementing policies on civil aviation to assure safe, economic and
efficient air travel.
Mandates and its functions
▪ Establish and prescribe rules and regulations for the inspection and
registration of all aircraft owned and operated in the Philippines and all
air facilities.
▪ Establish and prescribe the corresponding rules and regulations for the
enforcement of laws governing air transportation;
▪ Determine, fix and/or prescribe charges and/or rates pertinent to the
operation of public air utility facilities and services;
▪ Administer and operate the Civil Aviation Training Center (CATC);
▪ Operate and maintain national airports, air navigation and other similar
facilities in compliance to ICAO;
▪ Perform such other powers and functions as may be prescribed by law.
AIR TRAFFIC RIGHTS: FIVE FREEDOMS OF THE AIR

BILATERAL SYSTEM OF AIR TRAFFIC NEGOTIATION
Bilateral air services agreements/arrangements contain provisions on;
• Traffic rights—the routes airlines can fly, including cities that can be
served within, between and beyond the bilateral partners.
• Capacity—the number of flights that can be operated or passengers that
can be carried between the bilateral partners.
• Designation, Ownership and Control—the number of airlines the
bilateral partners can nominate to operate services and the ownership
criteria airlines must meet to be designated under the bilateral agreement.
This clause sometimes includes foreign ownership restrictions.
• Tariffs—i.e. prices. Some agreements require airlines to submit ticket
prices to aeronautical authorities for approval (it is not current practice for
Australian aeronautical authorities to require this), and
• Many other clauses addressing competition policy, safety and security.
Negotiating Air Traffic Rights
▪ Convention demands that a bilateral agreement be signed between the
two governments
▪ conducted between two panels of negotiators duly established by the
respective governments.
▪ In the Philippine setting, only the President of the Philippines can
create the Philippine panel, designating the chair and members,
negotiating parameters within which the panel must operate.
Composition:
▪ Chairman: Secretary of the Department of Foreign Affairs (DFA) or his
duly authorized representative
▪ Members: Secretaries of DTI, DOTC, DOLE, DOT and the Executive
Director of the CAB or their respective duly authorized representatives.
▪ The designated official air carriers of the Philippines may participate in
the proceedings as observers.
Air Service Agreement
▪ Set of agreements that defines the extent of air traffic rights granted by
treaty partners to one another in terms of any or all of the five freedoms
of the air.
▪ Level of capacity in terms of seats or flights in every air sector allowed
the types of aircraft, the frequency of flight, and even some extraneous
items are spelled out.
▪ Asa's conclusion: one-piece document produced by the convention
that influences the degree of consistency among countries today in air
service agreements.
The following are some issues on air traffic negotiation:
▪ Tariff issues: Conflict with Anti-Trust Laws
▪ Capacity issues: perceived biases
▪ Capacity issues: routes, frequencies, aircrafts and seats
▪ Issue on ratification of ASAs
DEGREE OF LIBERALIZATION
Open Sky Policy - concept of international policy that calls for the liberalization
of the international aviation industry's rules and regulations, mainly commercial
aviation, to establish a free-market environment for the airline industry which can
be pursued on a bilateral, regional, or multilateral basis.
Primary Objectives:
▪ To liberalize the rules for international aviation markets and minimize
government intervention as it applies to the passenger, all-cargo, and
combination air transportation as well as scheduled and charter
services.
▪ To adjust the regime under which military and other state-based flights
may be permitted.
Open Skies gives rise to:
▪ More competition between airlines;
▪ More scope for airlines of a third country to serve on a route between
two other countries; and
▪ More flexibility for airlines to develop their routes and networks as they
choose.
Open Skies Agreements usually contain some or all of the following provisions:
1. Open Markets: Abandonment (wholly or partially) of restrictions relating
to routes, number of designated airlines, capacity, frequencies and types
of aircraft that may be operated;
2. ‘Level Playing Field’: Include provisions that enable airlines domiciled
in countries that are parties to the agreement to compete on a fair and
equal basis.
3. Pricing: Allow carriers much greater pricing flexibility than the more
traditional Air Service Agreements (ASAs) they replace. Usually, a fare
can be disallowed only if both governments concur (‘double-disapproval’
pricing) and then only if certain conditions are met
4. Co-operative Marketing Arrangements: typically, carriers are allowed
to enter into code-sharing and/or leasing arrangements with airlines of
countries which are parties to the agreement;
5. Dispute Resolution: Open Skies Agreements typically include
procedures for resolving differences that may arise during the currency
of the agreement;
6. Charter Market: Open Skies Agreements typically include provisions
freeing-up the charter market;
7. Safety and Security: the governments of contracting states typically
agree to observe agreed standards of aviation safety and security.
8. Optional 7th Freedom Cargo Rights: some Open Skies Agreements
allow airlines of a member country to operate pure cargo services
between another member country and a third country, without insisting
on a stop in the cargo carriers home country. Open Skies Agreements
may be multilateral, regional or bilateral.
OPEN SKIES POLICY IN THE PHILIPPINES
Executive Order No. 219 (January 3, 1995)
• Promote international trade
• Reciprocity (between the Philippines and other countries) shall be
interpreted to mean the exchange of rights, freedoms, and opportunities
of equal or equivalent value.
• Limits coverage to major airports (Ninoy Aquino International Airport)
Executive Order No. 500-A (August 22, 2006):
(CAB) shall process within (30) days from receipt all applications for
international passenger transportation services to DMIA and SBIA.
• Grant of Unlimited 3rd and 4th freedom rights to foreign air
carriers operating in the Diosdado Macapagal International
Airport (DMIA) and the Subic Bay International Airport (SBIA).
Executive Order No. 29 (March 14, 2011):
Philippine Air Panels may offer and promote third, fourth, and fifth freedom right
to the country’s airports other than NAIA.
• Foreign carriers may now fly or operate in any airport in the
country
• Prohibits “cabotage”
UNILATERAL LIBERALIZATION - 2 categories of countries can logically pursue
unilateral liberalization.
First Category: include those countries too poor to afford to set up their own
airlines.
Second Category: countries with so little population but so rich in resources
that they could establish world-class airlines and airports that can tap the global
marketplace.
Logic: They do not have the population to make up for sufficient originating
and terminating traffic. But they certainly are poised to tap unlimited 3rd, 4th,
5th, 6th, and 7th freedom traffic if other countries would allow them to do so.
That is why they seek open skies policies with any and all countries.
BILATERAL LIBERALIZATION
Agreements between two parties. For international treaties, they can range
from legal obligations to non-binding agreements of principle (often used as a
precursor to the former).
MULTILATERAL LIBERALIZATION
Agreements are commerce treaties among three or more nations. The
agreements reduce tariffs and make it easier for businesses to import and
export. Since they are among many countries, they are difficult to negotiate.
PROGRESSIVE LIBERALIZATION
The two countries proceed to identify the economic opportunities in each
other’s territories and determine the level of air traffic in terms of passengers
and cargoes that can be generated by their economies.
ICAO CONSENSUS ON LIBERALIZATION
March 2013 - 6th Worldwide Air Transport Conference. In conclusion the
conference recommends that:
• ICAO should continue to update the Template Air Services Agreement
(TASAs) to keep pace with regulatory evolution and to update liberalization
indicators.
• ICAO should continue to assist States with air transport liberalization
efforts.

AIR TRAFFIC RIGHTS OF THE PHILIPPINES
Philippines – US ASAs Granting of unlimited frequencies, unlimited 3rd and 4th
freedom rights and unlimited 5th freedom rights to nearly all third country
destinations has not 0000000000000000000automatically created demand.
• Manila is not a passenger hub but remains a feeder
• Flights to the Philippines have not increased noticeably
• Visa restrictions to the US has dampen travel demand
Foreign Carriers underutilize their entitlements under their ASAs with the
Philippines.
• 40 to 50 airlines has rights to fly to new international gateways like
Clark, Cebu and Davao. Yet only a handful operate these flights. Thus,
giving air rights will not generate additional traffic.
WEEKLY SEAT CAPACITY ENTITLEMENT AND USAGE BY REGION
VALUE OF A NATIONAL FLAG CARRIER
Flag Carrier
- Airline or ship-line registered under the laws of a country whose
government gives it a partial or total monopoly over international routes.
(Business Dictionary)
- Airline that is or was owned by a government, often with the name of the
country in its name. (Cambridge Dictionary)
Does a Small Country Need an International Flag Carrier?
Philippine Constitutional Directives
• Art II Sec. 19: The State shall develop a self-reliant and independent
national economy effectively controlled by Filipinos.
• Art XV Sec. 10 par. 2: In the grant of rights, privileges and concession
covering the national economy and patrimony the State shall give
preference to qualified Filipinos.
• Art XII Sec 11: Public utility subject to nationality requirements.
Law and Policy
• Republic Act No. 2232 (1959): An Act to Reactivate the International Air
Transport Services of the Philippine Air Lines, Inc. and to Appropriate the
Necessary Funds therefor” provides, to wit:
• Section 1. Declaration of Policy. – Because of the peculiar geographical
location of the Philippines, it is vital to her security and defense and to the
enhancement of her commerce that she should maintain her own
international air operations.
• Executive Order 219 (1995) entitled Establishing the Domestic and
International Civil Aviation Liberalization Policy (E.O. 219): At least two
international carriers shall be designated official carriers for the Philippines
• Civil Aviation Consultative Council Centennial Aviation Conference
1998
International Law and Relations
• Art. 1 of the Chicago Convention
• Art. 6 of the Chicago Convention
• National flag carrier is a necessity for States to exercise traffic rights and
avail the other benefits in Air Services Agreements (ASA)
Does a Large Country or Economy Need an International Flag Carrier?
US’s Policy Objectives
• (US International Air Transportation Policy Statement (1995):
Provide carriers with unrestricted opportunities to develop types of
service and systems based on their own assessment of market
demand. (emphasis added)
• (US Statute, No. 49 U.S.C. 40101 (a) (15)): Strengthening the
competitive position of air carriers to at least ensure equality with
foreign air carriers, including the attainment of the opportunity for air
carriers to maintain and increase their profitability in foreign air
transportation.
Australian Policy Objectives
• (International Air Services Commission Act 1992): The
maintenance of Australian carriers capable of competing effectively
with airlines of foreign countries.” (emphasis added)
Large economies maintain state owned carriers
• Russia
• China
• France
AIRLINE IN TIMES OF EMERGENCIES
National Flag Carrier - Role in times of War
Gulf War (1991) - PAL repatriated thousands of OFWs that otherwise would
have been stranded in the war-torn region. On the diplomatic front, the national
flag carrier is able to proudly fly the President in state visits and multilateral
events requiring presence of heads of states.
Peacetime - national flag carrier plays a significant national security role since
it is ever ready for requisition when it becomes necessary.
During Times of Calamities - the national flag carrier does mercy flights,
emergency and relief operations uplifting relief goods and victims of disaster.