Amending Certain Sections of Republic Act Seven Hundred and Seventy-Six

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1462

AMENDING CERTAIN SECTIONS OF REPUBLIC ACT SEVEN HUNDRED AND SEVENTY-SIX

WHEREAS, Republic Act No. 776 was enacted into law on June 20, 1952;

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;

Chapter II
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:

"(jj) "General sales agent" means a person, not a bona fide employee of an air carrier, who pursuant to an authority from an airline, by itself or through...

Login to see full content

Summary of Presidential Decree No. 1462 Amending Republic Act No. 776

Definitions (Section 1):
- "General sales agent" means a non-employee who sells or offers air transportation on behalf of an airline. (Section 3(jj))
- "Cargo sales agent" means a non-employee who sells or offers air transportation of cargo on behalf of an airline. (Section 3(kk))
- "Air freight forwarder" means an indirect air carrier that consolidates shipments and is responsible for transportation from origin to destination, utilizing direct air carriers. (Section 3(ll))

Civil Aeronautics Board (CAB) Composition and Administration (Sections 2-5):
- The CAB is composed of the Minister of Tourism (Chairman), Director of Civil Aeronautics Administration (Vice Chairman), Commanding General of Philippine Air Force, and two Presidential appointees. (Section 5)
- CAB members receive a per diem of 500 Pesos per meeting, up to 2,000 Pesos per month. (Section 5)
- The CAB has its principal office in Metro Manila and can hold hearings anywhere in the Philippines. (Section 6)
- The CAB has an Executive Director (37,000 Pesos/year), Deputy Executive Director (30,000 Pesos/year), Board Secretary (member of the Philippine Bar), and other officers and employees. (Section 7)
- The Chairman can engage temporary consultants, experts, and agencies as necessary. (Section 8)

Powers and Duties of the CAB (Section 6):
- The CAB regulates the economic aspect of air transportation and has jurisdiction over air carriers, general sales agents, cargo sales agents, and air freight forwarders. (Section 10(A))
- The CAB can authorize domestic and international charters and special air services. (Section 10(C)(3))
- The CAB can grant foreign airlines increased frequencies and capacities on international routes for up to 30 days, subject to Presidential approval. (Section 10(C)(3))
- The CAB approves or disapproves changes in capital, leases, purchases, sales, consolidations, mergers, acquisitions, and operating contracts involving air carriers. (Section 10(C)(4))

Certificates of Public Convenience and Necessity (Sections 7-9):
- No person can engage in air commerce without a permit from the CAB. (Section 11)
- General sales agents, cargo sales agents, and air freight forwarders need a permit or authorization from the CAB. (Section 11)
- Permits cannot be transferred without CAB approval. (Section 23)

Violations and Penalties (Sections 10-11):
- Violations of the law, permit terms, or CAB orders are subject to a fine of up to 5,000 Pesos per violation, plus up to 200 Pesos per day the violation continues. (Section 42(B))
- Failure to pay fines can lead to permit suspension until payment is made. (Section 42(B))
- The CAB or Civil Aeronautics Administration can prescribe fees for services not covered by law. (Section 51)