REPUBLIC ACT NO. 7302 - AN ACT
GRANTING HOUSE OF TRAVEL, INCORPORATED, A FRANCHISE TO ESTABLISH,
OPERATE AND MAINTAIN DOMESTIC PASSENGERS AND CARGO AIR CHARTERED
TRANSPORT SERVICES WITH DAVAO AS ITS MAJOR HUB
Section 1. Nature and Scope of Franchise. — Subject to the
provisions of the Constitution and applicable laws, rules and
regulations, there is hereby granted to the House of Travel, Inc.,
hereunder referred to as the grantee, its successors or assigns a
franchise to establish, operate and maintain passenger and cargo air
charter transport services with Davao as its major hub.
Domestic air transport for tourist services shall include the
maintenance and operation of hangars and aircraft service stations and
facilities and other services of similar nature which may be necessary,
convenient or useful as an auxiliary to tourist air transport services.
The grantee shall be given the right at its terminals and landing
fields, as well as in its aircraft, to construct, operate and maintain
stations or transmitting sets for wireless telegraphy and direction
findings, and other radio aids to air navigation, using wavelengths in
accordance with the rules and regulations issued from time to time by
the proper agencies of the Government. The wireless communication
facilities shall be used solely for receiving and transmitting weather
forecasts and other matters in connection with the grantee's
services.
Sec. 2. Prior Approval of the City Aeronautics
Board. — The grantee shall secure from the Civil Aeronautics Board the
appropriate permits and licenses for its operations.
All aircraft used by the grantee and the flight crew members operating
such aircraft shall be licensed by the Government of the Philippines
and, together with its accessories and equipment, shall at all times be
in airworthy condition. They shall be equipped with radio
communication, safety and other equipment and shall be operated and
maintained in accordance with the regulations and technical
requirements of the Air Transportation Office or such other regulatory
bodies as the Government may prescribe for this purpose.
The grantee's equipment and the operation of such equipment shall at
all times be subject to inspection and regulation by the Air
Transportation Office.
The grantee shall comply with the provisions of Republic Act Numbered
Seven hundred seventy-six, and the regulations promulgated thereunder
from time to time.
Sec. 3. Responsibility to the Public. — Excepting
cases of force majeure and whenever weather conditions permit, the
grantee shall maintain passenger and cargo air charter transport
services within Davao and any and all points and places throughout the
Philippines as traffic needs may require.
Sec. 4. Rates for Services. — The grantee shall
fix just and reasonable rates for its air transport services, mail,
goods and freight, subject to the regulations and approval of the Civil
Aeronautics Board and other proper regulatory agencies of the
Government.
Sec. 5. Term of Franchise. — This franchise shall
be for a term of forty (40) years from the date of the approval of this
Act, unless sooner revoked or cancelled. In the event that the grantee
fails to operate continuously for two (2) years, this franchise shall
be deemed ipso facto revoked.
Sec. 6. Landing Facilities. — The grantee may use
the landing and other airport facilities on land and water as may be
maintained or owned by the Government within the Philippines or the
grantee's line subject to such terms and conditions, restrictions and
national policy consideration as the Philippine Government may
prescribe and, reciprocally, the Philippine Government shall have the
right to use the landing and other airport facilities as may be
maintained or owned by the grantee in the Philippines.
Sec. 7. Contracts. — The grantee is authorized to
enter into transportation contracts with the Philippine Government,
including the carrying of mail, upon terms and conditions to be
mutually agreed upon. The grantee shall give preferential consideration
to contracts with the Philippine Government. The grantee may likewise
enter into such other contracts relating to air transport activities.
Sec. 8. Right of Government. — In case of war,
insurrection, domestic trouble, public calamity or national emergency,
the Philippine Government, upon order of the President, shall have the
right to take over and operate the equipment of the grantee, paying for
its use or damages.
Sec. 9. Eminent Domain. — With the approval of the
President of the Republic of the Philippines and subject to the
limitations and procedures prescribed by law, the grantee shall be
authorized to exercise the right of eminent domain as may be reasonably
necessary for its stations and other structures in connection with the
grantee's activities.
No private property shall be taken for any purpose by the grantee
without proper condemnation proceedings and just compensation paid or
tendered therefore, and any authority to take and occupy land contained
herein shall not apply to the taking, use or occupation of any land
except such as is required for the actual purposes for which this
franchise is granted.
SECTION 10. Warranty in Favor of National and Local
Governments. — The grantee shall hold the national, provincial and
municipal governments of the Philippines harmless from all claims,
accounts, demands or actions arising out of accidents or injuries,
whether to property or to persons, caused by the operation of the
services under the franchise hereby granted.
SECTION 11. Public Equity Participation. — In
compliance with the constitutional mandate to democratize ownership of
public utilities, the herein grantee shall make a public offering
through the stock exchanges of at least thirty percent (30%) of its
common stock within a period of ten (10) years from the date of the
effectivity of this Act: provided, that no single person or entity
shall be allowed to own more than five percent (5%) of the stock
offering.
SECTION 12. Tax Provisions. — In consideration of the
franchise and rights hereby granted, the grantee shall pay to the
Philippine Government during the life of this franchise a franchise tax
of five percent (5%) of the gross receipts derived by the grantee from
its domestic air transport operations.
The grantee shall, however, be subject to income tax levied under Title
II of the National Internal Revenue Code, as amended, and the tax on
its real property under existing law.
SECTION 13. Interpretation of Franchise. — This
franchise shall not be interpreted to mean as an exclusive grant of the
privileges herein provided for. However, in the event that any
competing individual, partnership, or corporation shall receive a
similar permit or franchise with terms and/or provisions more favorable
than those herein granted or which tend to place the grantee herein at
any disadvantage, then such terms and/or provisions shall be deemed
part hereof and shall operate equally in favor of the grantee herein.
SECTION 14. Sale, Lease, Transfer, Assignment,
Usufruct, etc. — The grantee shall not lease, transfer, grant the
usufruct of, sell or assign this franchise and the rights and
privileges acquired thereunder to any person, firm, company,
corporation or legal entity, nor shall the controlling interest in the
grantee be transferred to any such private person, firm, company,
corporation or entity without the prior approval of the Congress of the
Philippines.
Any person or entity to which this franchise is sold, transferred, or
assigned shall be subject to all the conditions, terms, restrictions
and limitations of this Act.
SECTION 15. Reportorial Requirement. — The grantee
shall submit in annual report to the Congress of the Philippines on its
compliance with the terms and conditions of the franchise and on its
operations within sixty (60) days from the end of every year.
SECTION 16. Legislative Amendment. — This franchise
is subject to amendment or repeal by the Congress of the Philippines
when the common good so requires.
SECTION 17. Separability Clause. — If any section or
provision of this franchise, as amended, is held or declared
unconstitutional or invalid by a competent court in a final judgment,
the other sections or provisions hereof shall continue to be in force
as if the section or provision so annulled or voided had never been
incorporated in this franchise.
SECTION 18. Repealing Clause. — All laws, decrees,
orders, instructions, and rules and regulations or parts thereof which
are inconsistent herewith are hereby repealed or modified accordingly.
SECTION 19. Effectivity Clause. — This Act shall take
effect fifteen (15) days from the date of its publication in at least
two (2) newspapers of general circulation in the Philippines.
Approved: March 26, 1992
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