AN ACT GRANTING A FRANCHISE TO AIR MANILA
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AN ACT GRANTING A FRANCHISE TO AIR MANILA
Republic Act No. 4501
June 19, 1965
Case Overview and Summary
Summary of Republic Act No. 4501:Granting of Franchise
- Grants Air Manila, Incorporated a franchise to establish, operate and maintain air transport services for passengers, mail, cargo, and industrial flights within the Philippines and between the Philippines and other countries. (Section 1)
- The franchise is non-exclusive and subject to amendments, alterations, or repeal by the Congress of the Philippines. (Sections 15, 16)
Operations and Services
- Air Manila shall maintain scheduled or non-scheduled air transport services as required by traffic needs, except in cases of force majeure and unfavorable weather conditions. (Section 2)
- Air Manila shall fix just, reasonable, and uniform rates for passenger and freight transportation, subject to regulations and approval of the Civil Aeronautics Board or designated regulatory agency. (Section 3)
- All aircraft, flight crew, and equipment used by Air Manila shall be licensed and comply with regulations to ensure safety and airworthiness, subject to inspection by the Civil Aeronautics Administration. (Section 3)
- Air Manila shall comply with Republic Act No. 776 and its regulations. (Section 3)
Facilities and Communications
- Air Manila may use government-owned landing and replenishment facilities within the Philippines, except those restricted for military or naval considerations. Reciprocally, the government may use Air Manila's facilities. (Section 4)
- Air Manila has the right to construct, operate, and maintain wireless telegraphy, direction finding, and other radio aids for air navigation at its terminals, offices, landing fields, and aircraft, using approved wavelengths for weather forecasts and aircraft-related communications. (Section 5)
Contracts and Government Relations
- Air Manila is authorized to enter into transportation contracts with the Philippine government, including carrying mail, with preferential consideration given to government contracts. (Section 6)
- Air Manila may also enter into transportation, maintenance, servicing, and other air transport-related contracts with other airlines, domestic or foreign. (Section 6)
- In case of war, insurrection, or national emergency, the government has the right to take over and operate Air Manila's equipment during the emergency, paying for its use or damages. (Section 7)
Legal and Financial Provisions
- Air Manila shall be subject to existing and future laws of the Philippines. (Section 8)
- With government approval and subject to legal procedures, Air Manila may exercise the right of eminent domain as reasonably necessary for its facilities, with just compensation paid for private property taken. (Section 9)
- It is unlawful for Air Manila to use or employ persons held in involuntary servitude. (Section 10)
- Air Manila shall hold the national, provincial, and municipal governments harmless from claims arising out of accidents or injuries caused by its operations. (Section 11)
- Air Manila shall pay a tax of 2% of its gross revenue or earnings from operations under this franchise, payable quarterly and in lieu of other taxes, except real property tax. (Section 12)
- Air Manila shall keep accounts of gross receipts, revenues, or earnings, subject to inspection and audit by the Commissioner of Internal Revenue, with the right to appeal to courts. (Section 13)
Ownership and Transfer
- The franchise is granted with the understanding that 60% of Air Manila's capital stock is owned by Filipino citizens, and this percentage shall not be allowed to fall below 60%, under penalty of franchise cancellation. (Section 14)
- Air Manila shall not lease, transfer, grant the use of, sell or assign this franchise and rights without prior approval of the Congress of the Philippines, nor merge with another company without approval. (Section 18)
- Any entity to which the franchise is validly transferred or merged shall be subject to Philippine corporation laws and the conditions, terms, restrictions, and limitations of this franchise. (Section 18)
- Abandonment of any or all lines covered by this franchise for one year shall give rise to franchise cancellation upon judicial proceedings. (Section 18)
Violations and Termination
- Substantial violation of any provision of this Act by Air Manila shall result in forfeiture of privileges, franchises, and grants to engage in business in the Philippines, upon legal action by a government officer or complaint by a Philippine citizen, with a fine of up to 20,000 pesos. (Section 19)
- Upon termination of this franchise, all public land and rights granted to Air Manila shall revert to the Philippine government, and all real properties not disposed of within two years shall also revert. (Section 20)
Term and Effectivity
- The term of the franchise is 50 years from the date of approval of this Act. (Section 17)
- This Act shall take effect upon its approval. (Section 21)
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AN ACT GRANTING A FRANCHISE TO AIR MANILA
Republic Act No. 4501
•June 19, 1965
REPUBLIC ACT No. 4501
AN ACT GRANTING A FRANCHISE TO AIR MANILA, INCORPORATED, TO ESTABLISH AND MAINTAIN AIR TRANSPORT SERVICE IN THE PHILIPPINES AND BETWEEN THE PHILIPPINES AND OTHER COUNTRIES.
Section 1. There is hereby granted to Air Manila, Incorporated, a corporation duly created and existing under Philippine laws, and a holder of a Civil Aeronautics Board permit to operate domestically on a commercial basis, hereinafter called the grantee, a franchise to establish, operate and maintain transport services for the carriage of passengers, mail, industrial flights and cargo by air in and between, any and all points and places throughout the Philippines and other countries.
Section 2. Except in cases of force majeure and whenever weather conditions permit, the grantee shall maintain scheduled or non-scheduled air transport services in and between, any and all points and places throughout the Philippines as well as the Philippines and other countries at such frequencies as traffic needs may require.
Section 3. The grantee shall fix just and reasonable and uniform rates for the transportation of passengers and freight,...
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