A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Republic Acts :
|REPUBLIC ACT NO. 8103 - AN ACT
GRANTING A FRANCHISE TO ALL ASIA AIRLINES, CO., INC., TO ESTABLISH AND
MAINTAIN AIR TRANSPORT SERVICES THROUGHOUT THE PHILIPPINES AND/OR
BETWEEN THE PHILIPPINES AND OTHER COUNTRIES.
|Section 1. It is the policy of the State as set forth in
Executive Order No. 333 dated 16 August 1988, to encourage the
operation and development of air transport industry and to further
encourage healthy competition in order to promote the sound development
of the same industry.
Sec. 2. There is hereby granted to All Asia Airlines Co., Inc., hereinafter referred to as the grantee, a franchise to establish, operate and maintain scheduled and/or non scheduled and/or charter air transport services for the carriage of passengers, mail freight and property by air, in and between any and all points and places throughout the Philippines and between the Philippines and other countries as a designated flag carrier.
Sec. 3. Excepting cases of force majeure and whenever
weather conditions permit, the grantee shall maintain scheduled and/or
non-scheduled and/or charter air transport services on and between any
and all points and/or places throughout the Philippines, as well as
between the Philippines and other countries, at such frequencies as
traffic needs may require.
Sec. 4. The grantee shall fix just and reasonable
rate for the transportation of passengers, mail, freight, and property
subject to the regulation and approval of the Civil Aeronautics Board
or such other regulatory agencies as the government may designate for
this purpose. Any order of the Civil Aeronautics Board made under this
section shall be subject to review by the courts.
Sec. 5. Subject to such terms and conditions as the Philippines government may prescribe, the grantee may use the landing and other airport facilities on land or water as any be maintained or owned by the government within the Philippines on the grantee's lines, excepting those which, in the opinion of the government, may not be used by the grantee because of military or naval considerations. Reciprocally, the government shall have the right to use the landing and other airport facilities on land or water maintained or owned by the grantee in the Philippines.
Sec. 6. The grantee shall have the right at its terminals and landing fields, as it is allowed to use under Sec. 5 hereof, 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 or frequencies in accordance with the rules and regulations made by the government: provided, however, that the wireless communication facilities shall be used solely for receiving and transmitting weather forecast and messages relating to the grantee's aircraft and other matters in connection with the grantee's services.
Sec. 7. The grantee is authorized to enter into
transportation contracts with the government, including the carrying of
mail, upon such terms and conditions as may be mutually agreed upon.
The grantee shall give preferential consideration to contracts with the
Philippines government and, reciprocally, the latter shall give
preferential consideration to contracts with the grantee in the
carrying of passengers, mail freight and property.
Sec. 8. In case of war, insurrection, civil disturbance or other national emergency, and when the public interest so requires, the government, upon order of the President, may temporarily take over or direct the operations of the grantee paying just compensation for such use and for damages that may result there from.
Sec. 9. With the approval of the President 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 and operations.
Sec. 10. The grantee shall not issue stock or bonds except in exchange for actual cash or for property at least equal in value to the par value of the stock or bonds so issued or for services rendered as provided under existing cooperate laws: provided, however, that it may issue stock, bonds, or property dividends upon compliance with the requirements of applicable laws.
Sec. 11. The provisions of existing laws to the
contrary notwithstanding, the grantee is hereby authorized, to hire or
employ foreign nationals with special qualifications, competence, or
experience, or otherwise avail of the services of foreign firms or
entities under an appropriate contract, who/which are needed by the
grantee for the efficiency and improvement of its operations and other
Sec. 12. 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 which this franchise is hereby granted.
Sec. 13. In consideration of the franchise and the
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 revenues derived by the grantee from
Sec. 14. In compliance with the constitutional mandate to democratize ownership of public utilities, the herein grantee shall make public offering through the stock exchange of at least thirty percent (30%) of its common stock within a period of ten (10) years from the date of effectivity of this Act: provided, that no single person or entity shall be allowed to own more than five percent (5%) of the stock offerings.
Sec. 15. Within two (2) years after the effectivity of this Act, the grantee shall file with the Secretary of Transportation and Communications its written acceptance of the franchise and of all the terms and conditions hereof, and in default of such acceptance within the time so limited. This franchise shall become null and void.
Sec. 16. This franchise shall not be interpreted to mean as an exclusive grant of the privileges herein provided for. However, in the event that any individual, partnership, or corporation shall receive a similar permit of franchise with terms and/or provisions more favorable than those herein granted or which tend to place the herein grantee at any disadvantage, then such terms and/or provisions shall be deemed part hereof and shall operate equally in favor of the herein grantee.
Sec. 17. This franchise is granted with the understanding that the grantee is a corporation, at least sixty percent (60%) of the Capital stock of which is owned and controlled by citizens of the Philippines and that the interest of such citizens in its capital stock or in the capital stock of the company with which it may merge or consolidate shall at no time be allowed to fall below such percentage, under the penalty of cancellation of this franchise.
Sec. 18. This franchise is granted with the understanding that it shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the common good so requires.
Sec. 19. The term of this franchise shall be fifty (50) years from the date of the effectivity of this franchise.
Sec. 20. The provisions of existing laws to the contrary notwithstanding, the Treasurer of the Philippines is hereby authorized to offset any outstanding obligation of the grantee to any agency or instrumentality of the government with any receivable of the grantee from any agency or instrumentality of the government.
Sec. 21. The grantee shall not without the prior approval of the Congress of the Philippines, lease, transfer, grant the usufruct of, sell, or assign this franchise nor the rights and privileges acquired there under to any person firm, company, corporation, or any other commercial or legal entity, nor merge or consolidate with any other company or corporation organized for the same or any other purpose. Any corporation to which this franchise may be sold, transferred or assigned or with which the grantee may merge or consolidate, with the approval from the above-mentioned, shall be subject to the corporation laws of the Philippines now existing or hereafter enacted, and any person, firm, company, corporation or other commercial or legal entity to which this franchise is validly sold, transferred or assigned or with which the grantee may merge or consolidate, shall be subject to all the conditions, terms restrictions, and limitations of this franchise as fully and completely and to the same extent as if this franchise had been originally granted to such person, firm, company, corporation or other commercial or legal entity.
Sec. 22. Upon termination of this franchise by repeal, forfeiture, annulment, or expiration in due course, all public land and the right to occupy and use the same, granted to the grantee, shall revert to the Philippine government.
Sec. 23. If any section or provision of this franchise 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.
Sec. 24. All laws, decrees, orders, instructions, rules and regulations or parts thereof inconsistent herewith are hereby repealed or modified accordingly.
Sec. 25. This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspaper of national