WHEREAS,
Republic Act No. 776 was enacted into law on June 20, 1952;chanroblesvirtualawlibrary
WHEREAS, since then a need has been established for the Civil
Aeronautics Board to be given more authority and flexibility to be able
to meet the current and future demands on civil aviation development by
Philippine trade, commerce and tourism.
NOW, THEREFORE, I FERDINAND E. MARCOS, President of the Republic of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby order and decree the following amendments to Republic Act No.
776;chanroblesvirtualawlibrary
CHAPTER I
General Provisions
Section 1. Section 3 of Republic Act Numbered Seven
Hundred and Seventy-Six is hereby amended by adding to it paragraphs
(jj), (kk), and (ll) which read as follows:cralaw:red
"(jj) "General sales agent" means a person, not a
bona fide employee of anr carrier, who pursuant to an authority from
anrline, by itself or through an agent, sells or offers for sale anyr
transportation, or negotiates for, or holds himself out by
solicitation, advertisement or otherwise as one who sells, provides,
furnishes, contracts or arranges for, suchr transportation.
"(kk) "Cargo sales agent" means any person who does
not directly operate anrcraft for the purpose of engaging inr
transportation orr commerce and not a bona-fide employee of anr
carrier, who, as principal or agent, sells or offers for sale anyr
transportation of cargo, or negotiates for, or holds himself out by
solicitation, advertisement, or otherwise as one who sells, provides,
furnishes, contracts or arranges for, suchr transportation of cargo.
"(ll) "Air freight forwarder" means any indirectr
carrier which, in the ordinary and usual course of its undertaking,
assembles and consolidates or provides for assembling and consolidating
such property or performs or provides for the performance of break-bulk
and distributing operations with respect to consolidated shipments, and
its responsible for the transportation of property from the point of
receipt to point of destination and utilizes for the whole or any part
of such transportation the services of a directr carrier."
CHAPTER II
Civil Aeronautics Board
Section 2. Section 5 of Republic Act Numbered Seven
Hundred and Seventy-Six is hereby amended to read as follows:cralaw:red
"Sec. 5. Composition of the Board. — The Civil
Aeronautics Board shall be composed of the Minister of Tourism as
Chairman, the Director of the Civil Aeronautics Administration as Vice
Chairman, the Commanding General of the Philippiner Force and two
members to be appointed by the President of the Philippines. They shall
hold office at the pleasure of the President. All members of the Board
shall be entitled to a per diem of Five Hundred Pesos per member for
each meeting actually attended by them, which shall in no case exceed
Two Thousand Pesos a month. In case of absence or incapacity of the
Minister of Tourism, the Director of the Civil Aeronautics
Administration shall act as Chairman.
No member of the Board shall have any pecuniary interest in, or own any
stock or bond of, in any civil aeronautics enterprise."
Section 3. Section 6 of Republic Act Numbered Seven
Hundred and Seventy-Six is hereby amended to read as follows:cralaw:red
"Sec. 6. Principal Office and Quorum. — The Board
shall have its principal office in Metro Manila and may hold hearings
on any proceedings at such time and places within the Philippines as it
may provide by order in writing. The Chairman or the Vice Chairman and
two members of the Board shall constitute a quorum."
Section 4. Section 7 of Republic Act Numbered Seven
Hundred and Seventy-Six is hereby amended to read as follows:cralaw:red
"Sec. 7. Permanent Personnel. — The Board shall have
an Executive Director, a Deputy Executive Director, and a Board
Secretary who shall be a member of the Philippine Bar. The Executive
Director shall be the Chief Executive of the Board and shall have a
compensation of Thirty Seven Thousand Pesos per annum and such other
allowances as may be authorized by the Board. He will be assisted by
the Deputy Executive Director who shall receive a salary of Thirty
Thousand Pesos per annum and such other allowances as the Board may
authorize. The Board Secretary shall record all proceedings of the
Board, take charge of and keep all its papers, and perform such other
duties as may be prescribed by the Board. The Board shall have Chiefs
of the Technical Divisions, and such other officers and employees as
may be required by the Board in the performance of its functions and
duties. The Board Secretary, together with the Chiefs of the Technical
Divisions, shall receive a compensation of Twenty-Four Thousand Pesos
per annum and such other allowances as the Board may authorize.
In the absence of the Executive Director and the Deputy Executive
Directors, the Chairman may designate a senior member of the staff who
shall act as Officer-in-Charge."
Section 5. Section 8 of Republic Act Numbered Seven
Hundred and Seventy-Six is hereby amended to read as follows:cralaw:red
"Sec. 8. Temporary Personnel. — The Chairman, upon
recommendation of the Board, may engage, for temporary service such
duly qualified consultants, experts and agencies and/or other qualified
persons as are necessary and shall fix their compensation."
Section 6. Paragraph (A), and Sub-paragraphs (3) and
(4) of Paragraph (c) of Section 10 of Republic Act Numbered Seven and
Seventy-Six are hereby amended to read as follows:cralaw:red
"Sec. 10. Powers and Duties of the Board. — (A)
Except as otherwise provided herein, the Board shall have the power to
regulate the economic aspect ofr transportation, and shall have the
general supervision and regulation of, the jurisdiction and control
overr carriers, general sales agents, cargo sales agents, andr freight
forwarders as well as their property, property rights, equipment,
facilities and franchise, insofar as may be necessary for the purpose
of carrying out the provision of this Act.
"(C)(3) To authorize any type of charters whether
domestic or international and specialr services or flight under such
terms and conditions as in its judgment public interest requires.
Notwithstanding the existence of bilateralr agreement, the CAB is
authorized to grant any foreignrline increase in frequencies and/or
capacities on international routes when in its judgment the national
interest requires it, provided that the utilization of the increase
frequencies and capacities is not more than thirty days. All grants of
frequencies and/or capacities shall be subject to the approval of the
President.
"(C)(4) To approve or disapprove increase and/or
decrease of capital, lease, purchase, sales orrcraft ofr carrier
engages inr commerce, consolidation, merger, purchase, lease and
acquisition and control of operating contracts between domesticr
carriers, between domestic and foreignr carrier, or between domesticr
carriers or any persons engaged in any phase of aeronautics."
CHAPTER III
Certificate of Public Convenience and Necessity
Section 7. The first paragraph of Section 11, of
Republic Act Numbered Seven Hundred and Seventy-Six is hereby amended
to reads as follows:cralaw:red
"Sec. 11. Nature, Terms and Conditions. —
Certificate of Public Convenience and Necessity is a permit issued by
the Board authorizing a person to engage inr commerce and/orr
transportation, foreign and/or domestic. No person shall engage inr
commerce unless there is in force a permit issued by the Board."
Section 8. A new paragraph is hereby added after the
first paragraph of Section 11 Republic Act Numbered Seven Hundred and
Seventy-Six, which read as follows:cralaw:red
"No general sales agent, cargo sales agent orrcraft forwarder shall
engage in any of the activities mentioned in Section 3 paragraphs (jj),
(kk), and (ll) respectively, unless there is in force a permit or any
other form of authorization issued by the Board."
Section 9. Section 23 of Republic Act Numbered Seven
Hundred and Seventy-Six is hereby amended to read as follows:cralaw:red
"Sec. 23. Transfer of Permit. — No permit may be
transferred without the prior approval of the Board."
CHAPTER IV
Violation and Penalties
Section 10. Paragraph (B) of Section 42 of Republic
Act Numbered Seven Hundred and Seventy-Six is hereby amended to read as
follows:cralaw:red
"B. Anyr carrier or person who violates or fails to
comply with any provision of this Act of the terms, conditions, or
limitations in a permit or amendment thereto or any orders, rules or
regulations issued by the Board, shall be subject to a fine not
exceeding Five Thousand Pesos for each violation. In addition thereto,
a fine not exceeding Two Hundred Pesos per day for every day during
which such default or violation continues shall likewise be imposed.
The Board is hereby empowered to impose such fine, after due notice and
hearing.
"The fines so imposed shall be paid to the government of the
Philippines through the Board, and failure to pay fines in any case
within the time specified in the order or decision of the Board shall
be a ground for the suspension of the permit of suchr carrier until
payment shall be made. Payment may also be enforced by appropriate
action brought to a court of competent jurisdiction.
"The other fines as penalty for violation prescribed elsewhere under
this section are amended and/or modified accordingly.
Section 11. Section 51 of Republic Act Numbered
Seven Hundred and Seventy-Six is hereby amended to read as follows:cralaw:red
"Sec. 51. Other Fees. — When any act of service has
been performed or rendered by the Civil Aeronautics Administration or
the Civil Aeronautics Board under the provisions of this Act for which
no fee has been fixed by law, such fees shall be collected as may from
time to time be prescribed by the Civil Aeronautics Administration or
the Civil Aeronautics Board, as the case may be: Provided, however,
That those to be prescribed by the Civil Aeronautics Administration
shall be with the approval of the Department Head."
Section 12. All acts, part of acts, executive
orders, ordinances, rules and regulations which are inconsistent with
the provisions of this Decree are hereby repealed, amended or modified
accordingly.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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