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Governing Laws RA 776, otherwise known as the Civil Aeronautics RA 9497, otherwise known as the Civil Aviation Authority
Act of the Philippines, as amended by E.O. 217 and Act of 2008
P.D. 1462

General Purpose The act reorganizes and defines the powers and The act provides for the creation of a civil aviation authority
duties of the Civil Aeronautics Board and the Civil with jurisdiction over the restructuring of the civil aviation
Aeronautics Administration. The act also provides for system.
regulation of air transportation and civil aeronautics.

Governing Body 1. The Civil Aeronautics Board (CAB)1 is composed of
the following:
Secretary of Transportation and
Communications or his designated
representative as Chairman
Assistant Secretary for Air Transportation of
the Department of Transportation and
Communications as Vice-Chairman
Commanding General of the Philippine Air
Force
Two other members to be appointed by the
President of the Philippines.
1. The Civil Aviation Authority of the Philippines (CAAP)3 is
composed of the following:
Secretary of the Department of Transportation and
Communications shall act as chairman ex officio
Director General of Civil Aviation (DGCA) shall be
the vice chairman of the Board
Secretary of Finance
Secretary of Foreign Affairs
The Secretary of Justice
The Secretary of the Interior and Local Government
The Secretary of the Department of Labor and
Employment

2. The Civil Aeronautics Administration2 shall be under 2. The Director General shall be the chief executive and
the Department of Commerce and Industry, and shall operating officer of the Authority
be composed of:
One chief, known as the Administrator
One deputy chief, known as Deputy
Administrator

1
See Section 5, R.A. 776.
2
See Section 25, R.A. 776.
3
See Section 5, R.A. 9497.
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Primary Duties and Civil Aeronautics Board Civil Authority of the Philippines
Functions
, QUASI-JUDICIAL FUNCTIONS QUASI-JUDICIAL FUNCTIONS
Appellate powers: the board, upon petition or Appellate Powers over any decisions, findings,
motu proporio, may, after notice and hearing, and rulings of the Director General;10
alter, amend, modify, or suspend any permit;4 the Appellate powers to order the taking of
board may review, revise, reverse, modify or depositions in any proceeding or investigation,
affirm on appeal any administrative decision or pending before the Board.11
order of the Administrator on the following
matters: 1) Grounding of airmen and aircrafts, 2)
Revocation of any certificate or denial by
Administrator of issuance of certificate, or 3)
Imposition of civil penalty or fine.5
Acts as vice-chairman of the Philippine Air Panel
in the negotiations and consultations of air
agreements with foreign governments for the
promotion, establishment, or development of
foreign air transportation.6

QUASI-LEGISLATIVE FUNCTIONS7 QUASI-LEGISLATIVE FUNCTIONS12

(Regulatory/Licensing)
Establish and prescribe rules, regulations, and
procedures for the regulation, promotion,
and development of the economic aspect of air
transportation;
Regulation of fares and rates for carriage of
persons and property
(Regulatory/Licensing)
Issuance of Rules and Regulations;
Regulates the technical and operational aspects
of air transportation;
Implementation of policies on civil aviation to
assure safe, economic and efficient air travel
Imposition of reasonable charges and fees for use

4
See Section 22, R.A. 776.
5
See Section 10 (f), R.A. 776.
6
http://www.cab.gov.ph/7-about?start=4, Last accessed 2 February 2017.
7
See Section 10, R.A. 776.
10
See Section 24 (e), R.A. 9497.
11
See Section 24 (f), R.A. 9497.
12
See Section 24, R.A. 9497
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Licensing of domestic airlines; of government air navigation facilities and of

Licensing of international airlines, with the privately-owned air navigation facilities
approval of the President; Fixing fees such as landing fees, parking space
Issuance of Certificates of Public Convenience fees, royalties on sales or deliveries to aircrafts
and Necessity (CPCN) to domestic carriers, Issuing airmen certificates to individuals who
Foreign Air Carriers Permit (FACP) to foreign possesses the proper qualifications for, and are
carriers, and Letters of Authority to airfreight physically able to, perform the duties
forwarders, general sales agents, and cargo sales
agents;
Establish and prescribe the corresponding rules
and regulations in the enforcement and
monitoring of compliance of the laws governing
stakeholders engaged in air commerce;
Participates in negotiation of air agreements
covering exchange of air rights

INVESTIGATORY POWERS
The board may investigate, upon complaint or
upon its own initiative, violations of this act or
rules and regulations

Civil Aeronautics Administration Director General

QUASI-LEGISLATIVE8 QUASI-LEGISLATIVE13
(Regulatory/Licensing) (Regulatory/Licensing)
Promulgation of rules and regulations concerning Issuance of certificates (airmans certificate,
certification airworthiness certificate, air carrier operating
Provides for enforcement of rules and regulations certificate, type certificate, certification of civil
issued under this law aviation schools);

8
See Section 32, R.A. 776.
13
See Section 35, R.A. 9497.
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Issuance of certificates (airmans certificate,
airworthiness certificate, air carrier operating
certificate, type certificate, certification of civil
aviation schools);
Imposition of fees and charges for the use of
privately owned air navigation facilities, and use of
government air navigation facilities, for the
issuance/renewal of licenses or certificates
Imposition of fines, civil penalties, and fees (such
as landing fees, parking space fees, royalties on
sales or deliveries to aircrafts)
Participation in development of international
standardization;
Assist in research and technical studies
To administer and manage the Manila
International Airport and all government owned
aerodromes, except those of the AFP
Granting permits for aerial photography
Collection of fees and charges necessary for
aircraft registration, license issuance or renewal
Inspection air navigation facilities;
Establish, improve, or maintain necessary air
navigation facilities;
Suspension, revocation, denial, or cancelation of
license;
Granting authority for aerial photography;
Imposition of fines and civil penalties;
Participation in development of international
standardization;
Assist in research and technical studies

INVESTIGATORY POWERS9 INVESTIGATORY POWERS14

Conduct investigations for violations of this act Conduct investigations for violations of this act
Conduct investigations of accidents involving
aircraft

Other Laws o The New Civil Code provisions on Common Carriers

Applicable to o PD 1464, The Tariff and Customs Code of the Philippines, as amended
Aviation o RA 6235, An Act Prohibiting Certain Acts Inimical to Civil Aviation, and for Other Purposes
o Warsaw Convention (Convention for the Unification of Certain Rules Relating to International Transportation by
Air)

9
See Section 32, R.A. 776.
14
See Section 35, R.A. 9497.
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o Chicago Convention (Convention on International Civil Aviation)

Brief History 20 November 1931: The Philippine Legislature passed Act No. 390915 providing the Secretary of the Department of
Commerce and Communications has the duty, among others, to foster air commerce, encourage the establishment
of airports, civil airways and other navigation facilities and investigate causes of air mishaps.

5 December 1932: Act No. 399616 amended Act No. 3909 as to matters concerning the licensing of airmen and
aircraft, inspection of aircraft, air traffic rules, schedules and rates and enforcement of aviation laws.

9 December 1932: Act No. 403317 was approved, providing, among others, that no aviation public service, including
those of foreign aircrafts, shall operate in the Philippines without having first secured from the Philippine Legislature a
franchise to operate an air service.18

1932 to 1936: There were no standard procedures as to the licensing of airmen, registration of aircraft and recording
of various aeronautical activities connected with commercial aviation. There were attempts made to register planes
and their owners without ascertaining their airworthiness and to record names of pilots, airplane mechanics and other
details.

12 November 1936: The National Assembly passed Commonwealth Act No. 16819, otherwise known as the Civil
Aviation Law of the Philippines, creating the Bureau of Aeronautics and organizing the same under the Department
of Public Works and Communications.20

March 1945: The Bureau was reorganized and placed under the Department of National Defense. Among its
functions was to promulgate civil aviation regulations.21

15
Entitled, AN ACT CONCERNING THE LICENSING OF AIRMEN AND AIRCRAFT, AND INSPECTION OF THE SAME, CONCERNING AIR TRAFFIC RULES, CONCERNING SCHEDULES AND
RATES OF AVIATION COMPANIES AND CONCERNING THE ENFORCEMENT OF THE LAW, approved on November 20, 1931.
16
Entitled, AN ACT TO AMEND ACT NUMBERED THIRTY-NINE HUNDRED AND NINE CONCERNING THE LICENSING OF AIRMEN AND AIRCRAFT, INSPECTION OF THE SAME, AIR
TRAFFIC RULES, SCHEDULES AND RATES OF AVIATION COMPANIES AND THE ENFORCEMENT OF THE LAW, approved on December 5, 1932.
17
Entitled, AN ACT AMENDING CERTAIN PROVISIONS OF ACT NUMBERED THIRTY-ONE HUNDRED AND EIGHT, AS AMENDED, ENTITLED, AN ACT CREATING A PUBLIC UTILITY
COMMISSION AND PRESCRIBING ITS DUTIES AND POWERS, AND FOR OTHER PURPOSES, approved on December 9, 1932.
18
See Section 2, Act No. 4033.
19
Entitled, An ACT PROVIDING FOR THE PROMOTION AND DEVELOPMENT OF CIVIL AVIATION IN THE PHILIPPINES, CREATING THE BUREAU OF AERONAUTICS, AND DEFINING ITS
POWERS, DUTIES AND FUNCTIONS, approved on November 12, 1936.
20
See Section 4, Commonwealth Act No. 168.
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October 1947: Executive Order (E.O.) No. 94 which reorganized the government and transferred the Bureau of
Aeronautics to the newly created Department of Commerce and Industry and renamed the same as the Civil
Aeronautics Administration (CAA).22

5 June 1948: R.A. No. 22423 created the National Airports Corporation, serving as an agency of the Republic of the
Philippines for the development, administration, operation and management of government-owned landing fields in
the country except for those controlled and/or operated by the Armed Forces.

10 November 1950: The National Airports Corporation was abolished by E.O. No. 365 and was replaced by the
CAA.24

20 June 1952: R.A. No. 77625, otherwise known as the Civil Aeronautics Act of the Philippines, was passed,
reorganizing the Civil Aeronautics Board and the CAA, defining their respective powers and duties, making
adjustments as to the funds and personnel and regulating civil aeronautics. Under R.A. No. 776, the CAA was
charged with the duty of planning, designing, constructing, equipping, expanding, improving, repairing or altering
aerodromes or such other structures, improvements or air navigation facilities.

19 October 1956: Former President Ramon Magsaysay issued E.O. No. 209, transferring in toto the CAA to the
Department of Public Works, Transportation and Communications from the Department of Commerce and Industry.26

20 January 1975: Letter of Instruction No. 244, series of 197527, directed that all funds for the preliminary
engineering, construction and maintenance of all national airports appropriated for the fiscal year 1974-75 be

21
Supra note 4
22
Id.
23
Entitled, AN ACT TO CREATE A PUBLIC CORPORATION TO BE KNOWN AS THE NATIONAL AIRPORTS CORPORATION, TO DEFINE ITS POWERS AND DUTIES, TO APPROPRIATE
THE NECESSARY FUNDS THEREFOR, AND FOR OTHER PURPOSES, dated June 5, 1948.
24
National Airports Corporation v. Teodoro, Sr. and Phil. Airlines Inc., 91 Phil. 203, 204 (1952).
25
Entitled, AN ACT TO REORGANIZE THE CIVIL AERONAUTICS BOARD AND THE CIVIL AERONAUTICS ADMINISTRATION TO PROVIDE FOR THE REGULATION OF CIVIL
AERONAUTICS IN THE PHILIPPINES AND AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, approved on June 20, 1952.
26
See Section 31 of E.O. No. 209, series of 1956.
27
Addressed to the Secretary of Public Highways, the Director of Civil Aviation, the Budget Commissioner and the Chairman of the Commission on Audit and issued by former President Ferdinand
E. Marcos on January 20, 1975.
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transferred and/or released to the Department of Public Highways. The responsibilities related to location, planning
design and funding were later returned to the CAA.28

23 July 1979: Former President Ferdinand E. Marcos issued E.O. No. 546,29 renaming the CAA as the Bureau of Air
Transportation (BAT) and placing the same under the Ministry of Transportation and Communications.
13 April 1987: President Aquino issued E.O. No. 125-A30 renaming BAT to ATO which would be headed by the
Assistant Secretary of the Office of Air Transportation.31 Section 1232 of said E.O. No. 125 which contained the
proviso concerning BAT was deleted by Section 233 of E.O. No. 125-A.

Mid-1995: The Philippine Civil Aviation safety oversight capability was downgraded by the United States of America
(USA) through her Federal Aviation Administration (FAA) International Aviation Safety Assessment (IASA) into a
Category 234 status.

28
Id.
29
Entitled, CREATING A MINISTRY OF PUBLIC WORKS AND A MINISTRY OF TRANSPORTATION AND COMMUNICATIONS, dated July 23, 1979.
30
Entitled, REORGANIZING THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS DEFINING ITS POWERS AND FUNCTIONS AND FOR OTHER PURPOSES, dated January 30,
1987.
31
Entitled, AMENDING EXECUTIVE ORDER NO. 125, ENTITLED REORGANIZING THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS, DEFINING ITS POWERS AND
FUNCTIONS, AND FOR OTHER PURPOSES, dated April 13, 1987.
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SEC. 9. Assistant Secretaries and Service Chiefs. The Secretary shall also be assisted by eight (8) Assistant Secretaries appointed by the President upon the recommendation of the Secretary,
each of whom shall respectively be responsible for the following four (4) staff offices composed of eight (8) services and four (4) line offices, and shall report to the respective Undersecretaries
assigned by the Secretary, which Undersecretary shall have control and supervision over said respective services and offices. y
xxxx
(h) Office of the Assistant Secretary for Air Transportation.
Each of the above-named services shall be headed by a service chief appointed by the President upon the recommendation of the Secretary.
33
SEC. 12. Bureau of Air Transportation. The Bureau of Air Transportation, as reorganized herein, shall have the functions of developing, formulating and recommending plans, policies, programs,
projects, standards, specifications and guidelines related to air transportation including air space utilization, air traffic control and aeronautics communications and information services, aircraft and
air navigational facilities, services, maintenance and operations. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the inspection and registration of aircrafts;
(b) Establish and prescribe rules and regulations for the issuance of licenses to qualified airmen;
(c) Establish and prescribe rules and regulations for the enforcement of laws governing air transportation, including the penalties for violations thereof, and to deputize appropriate law enforcement
agencies in pursuance thereof;
(d) Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air, utility, facilities and services, except in cases where charges or rates are established by international
bodies or associations of which the Philippines is a participating member, or by bodies or associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(e) Administer and operate the Civil Aeronautics Training Center;
(f) Perform such other functions as may be provided by law.
34
The FAA has established two ratings for the status of countries at the time of the assessment: that comply and that does not comply with ICAO standards. They are defined as follows:
Category 1, Does Comply with ICAO Standards: A countrys civil aviation authority has been assessed by FAA inspectors and have been found to issue license and oversee air carriers in
accordance with ICAO aviation safety standards.
Category 2, Does Not Comply with ICAO Standards: The Federal Aviation Administration assessed this countrys civil aviation authority (CAA) determined that, it does not provide safety
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First quarter of 1997: The Category 1 status was regained by the Philippines as it was successfully initiated by the
organic/incumbent personnel of the defunct ATO.

January 2008: The FAA reverted the Philippines to its 1995 air safety rating of Category 2 from Category 1 because
of air safety regulations, practices and personnel that fell below the standards of the ICAO.

4 March 2008: R.A. No. 9497 was passed, whereby ATO was replaced by CAAP, to be headed by the Director
General of Civil Aviation. Pursuant to Sections 435 and 8536 thereof, the ATO was abolished, and all its powers were
transferred to the CAAP. To ensure the smooth transition from ATO to CAAP, Section 86 of R.A. No. 9497 directed
the Assistant Secretary of the ATO to continue to hold office and assume the powers of the CAAP Director General
until his successor shall have been appointed and inducted into office in accordance with said law.

oversight of its air carrier operators in accordance with the minimum safety oversight standards established by the International Civil Aviation Organization (ICAO).
This rating is applied if one or more of the following deficiencies are identified:
1. The country lacks laws or regulations necessary to support the certification and oversight of air carriers in accordance with minimum international standards;
2. The CAA lacks the technical expertise, resources, and organization to license or oversee air carrier operations;
3. The CAA does not have adequately trained and qualified technical personnel;
4. The CAA does not provide adequate inspector guidance to ensure enforcement of, and compliance with, minimum international standards; and
5. The CAA has insufficient documentation and records of certification, inadequate, and continuing oversight and surveillance of air carrier operations. (visited last September 29, 2014.)
35
SEC. 4. Creation of the Authority. Is hereby created as an independent regulatory body with quasi-judicial and quasi-legislative powers, possessing corporate attributes to be known as the Civil
Aviation Authority of the Philippines (CAAP), hereinafter referred to as the Authority, attached to the Department of Transportation and Communications (DOTC) for the purpose of policy
coordination. For this purpose, the existing Air Transportation Office created under the provisions of Republic Act No. 776, as amended, is hereby abolished.
36
SEC. 85. Abolition of the Air Transportation Office. The Air Transportation Office (ATO) created under Republic Act No. 776, a sectoral office of the Department of Transportation and
Communications (DOTC), is hereby abolished.
All powers, duties and rights vested by law and exercised by the ATO is hereby transferred to the Authority.
All assets, real and personal properties, funds and revenues owned by or vested in the different offices of the ATO are transferred to the Authority. All contracts, records and documents relating to
the operations of the abolished agency and its offices and branches are likewise transferred to the Authority. Any real property owned by the national government or government-owned corporation
or authority which is being used and utilized as office or facility by the ATO shall be transferred and titled in favor of the Authority.