EXECUTIVE ORDER NO. 219
EXECUTIVE ORDER NO. 219 -
ESTABLISHING THE DOMESTIC AND INTERNATIONAL CIVIL AVIATION
LIBERALIZATION POLICY
WHEREAS, the Philippine
Constitution provides: “the State shall regulate or prohibit monopolies
when the public interests require. No combination in restraint of trade
or unfair competition shall be allowed;”
WHEREAS, the policy the liberalization has been adopted in line with
the Constitutional mandate and in pursuit of the Philippines 2000
strategy of Global Competitiveness;
WHEREAS, in the current thrust to expand investment and trade, and
increase access for Filipino as well as foreign passengers, there is
urgent need for the Philippines to improve air service availability,
quality and efficiency through exposure to foreign markets and
competition.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby
order:
1.
INTERNATIONAL AIR TRANSPORTATION
1.1
Carrier Designation. At least two (2) international carriers
shall be designated official carrier(s) for the Philippines.
However, if the designated carrier(s) do not service the total
frequency entitlement of the Philippines under existing Air Services
Agreements or other arrangements, then additional carrier(s) may be
designated to operate such unused frequencies;
1.2 Traffic
Rights and Routes. The exchange of traffic rights and routes with
other countries shall be based on (a) the National Interest which shall
include value for the Philippines in terms of promoting international
trade, foreign investments and tourism, among others; and on (b) the
reciprocity between the Philippines and other countries.
Reciprocity shall be interpreted to mean the exchange of rights,
freedoms, and opportunities of equal or equivalent value. The
Civil Aeronautics Board (CAB) shall determine “national interest”
taking into consideration the larger interest of the country,
especially the users of air services.
1.3 Frequency
and Capacity. All grants of frequencies or capacity to, any
increase of existing frequencies or capacities of and/or the grant of
new routes or traffic points to any foreign carrier (even if on a
provisional basis) shall be the sole prerogative of the CAB subject to
the confirmation of the Office of the President. The following
rules shall determine the frequency and capacity for the carriers
concerned:
a.
Frequency and capacity of third and fourth freedom carriers will be
determined based on reciprocity and value of the Philippines.
b. Fifth
freedom traffic shall be secondary and supplemental to third and fourth
freedom traffic except that the CAB may grant fifth freedom rights in
order to promote the development of routes and destinations.
c. The CAB may
authorize special flights when, for any reason whatsoever, the
designated carrier(s) fail to accommodate a route/link traffic demand.
1.4
Tariff and Fares. The CAB shall regulate the fares, rates and
charges of foreign designated carriers in accordance with existing
laws. Reciprocity and value for the Philippines shall be
considered in granting discounted or promotional fares and rates.
To the extent possible, air transportation tickets of Filipino citizens
residing in the Philippines shall be purchased, issued and paid in the
Philippines.
1.5 Charters
and Non-Scheduled Services. The CAB may authorize chartered
flights and non-scheduled services provided the traffic of the
scheduled services shall not be significantly diverted.
1.6
Developmental and Cooperative Air Services. The CAB may grant
authority to operate air services principally for the development of
routes, destinations and gateways but not to exceed one (1) year.
Further, authority shall be
granted in the operation of air services connecting non-premier city
airports of other countries to new international gateways of the
country as provided for under economic cooperation agreements with the
Philippines.
1.7
Composition of Negotiating and Consultation Panels. The following
rules shall define the composition of the Air Negotiating Panel and the
Consultation panel:
a.
The Department of Foreign Affairs (DFA) shall be the lead agency
responsible for the initial negotiations leading to the conclusion of
the Air Services Agreements or similar arrangements. The
Philippine Negotiating Panel shall be composed of representatives from
the DFA (as Chairman), representatives of the Civil Aeronautics Board
(CAB), the Philippine designated carrier(s) and such other person(s) as
may be authorized by the President of the Philippines.
b. In similar
succeeding negotiation of these Air Services Agreements or similar
arrangements (consultation talks), the Department of Transportation and
Communications (DOTC), through the CAB shall be the lead agency
involved in coordinating all necessary preparations. The
Philippine Consultation Panel shall be composed of representatives from
the CAB (as Chairman), the Department of Tourism (DOT), the Philippine
designated carrier(s) and other person(s) as may be authorized by the
Secretary of Transportation and Communications.
2.
DOMESTIC AIR TRANSPORTATION
2.1
Entry Into and Exit from the Industry. To the extent allowed by
law, transportation industry shall be industrialized. A minimum
of two (2) operators in each route/link shall be encouraged.
Routes/links presently serviced by only one (1) operator shall be
opened for entry to additional operator(s).
The right of an existing
operator to leave a particular route shall be recognized subject,
however, to the statutory obligation that “no carrier shall abandon any
route, or part thereof for which a permit has been issued, unless upon
findings by the CAB that such abandonment is uneconomical and is in the
public interest.” (Last par., Sec. 11, R.A. No. 776)
2.2 Tariffs
and Fares. To the extent allowed by law passage freight and other
charges shall be liberalized. However, passage rates shall
likewise be deregulated for routes/links operated by more than one (1)
common carrier. For routes serviced by a single operator, passage
rates shall continue to be regulated. However, all freight rates,
charges and passage rates shall be monitored by the CAB.
3.
All government agencies and instrumentalities including
government-owned or controlled corporations are hereby ordered to
assist, cooperate and support the implementation of this Order.
4. This
Executive Order amends and/or revokes all executive, department and
agency issuances or any provision thereof inconsistent with this
Order. The Civil Aeronautics Board is hereby directed to issue
implementing rules and regulation in compliance with this Order.
5. This
Executive Order shall take effect fifteen (15) days after its
publication once in a newspaper of general circulation.
DONE in the City of Manila,
this 3rd day of January in the year of our Lord, Nineteen Hundred
Ninety Five.
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Since 19.07.98.