Implementing Rules and Regulations of Executive Order Nos. 219 and 32

September 20, 2001

IMPLEMENTING RULES AND REGULATIONS OF EXECUTIVE ORDER NOS. 219 AND 32, ESTABLISHING THE DOMESTIC AND INTERNATIONAL CIVIL AVIATION LIBERALIZATION POLICY

Pursuant to Section 4 of Executive Order No. 219 dated 03 January 1995, the following rules and regulations are hereby adopted:

RULE I

General Provisions

1.01 The following Rules and Regulations shall be known and cited as the "Implementing Rules and Regulations of Executive Orders Nos. 219 and 32". Its short title shall be the "CAB Liberalization Rules".

1.1 Executive Order No. 219 adopts a policy of liberalization with respect to both domestic and international civil aviation to promote the viability and development of the Philippine aviation industry, the expansion of investment, trade and tourism in the Philippines, increase access to destinations for Filipinos as well as foreign passengers and improve air service availability, quality and efficiency through exposure to foreign markets and completion.

1.2 For purposes of application and construction of these rules, the following terms shall have the meanings and definitions specified hereunder:

1.2.1 "Air Carrier" means a person or entity who undertakes, whether directly or indirectly, or by a lease or any other arrangements, to engage in air transportation or air commerce.

1.2.2 "Air Commerce" means and includes air transportation for pay or hire, the navigation of an aircraft in furtherance of a business, or the navigation of an aircraft from one place to another for operation in the conduct of a business.

1.2.3 "Air Services Agreement" (ASA) is the basic and formal agreement governing the civil aviation relationship between the contracting States. This is also commonly referred to as a "bilateral". Where the context so requires, the term ASA shall also mean or include "other air services arrangements" or "similar air services arrangements" such as, but are not limited to, Exchange of Notes, Exchange of Letters, Agreed Minutes, Memorandum of Understanding, Memorandum of Consultations and other documents that govern or relate to any of (but not limited to) the following:

i. implementation of certain provisions of the bilateral.

ii. amendment of certain provisions of the bilateral.

iii. elaboration or clarification of certain provisions of the bilateral.

iv. establishment and operation of air transportation and related services pending the conclusion of a bilateral.

v. any matter relating to the civil aviation relationship of two or more governments or their authorized respective agencies.

1.2.4 "Air transportation" means service or carriage of persons, property or mail, in whole or in part, by aircraft.

1.2.5 "Board" shall refer to the Civil Aeronautics Board.

1.2.6 "Capacity" refers to the quantitative measurement of the supply of air transportation service expressed either in (a) number of flight frequencies, or (b) number of seats (for passenger operation), or (c) units of weight or space for cargo operations, or (d) aircraft types, or (e) a combination of any of the above.

1.2.7 "Certificate of Public Convenience and Necessity" (CPCN) or "Certificate" is a permit issued by the Board authorizing a person or entity to engage in air commerce and/or air transportation, foreign and/or domestic, scheduled and/or unscheduled.

1.2.8 "Charter flight" or "Charter trip" is a non-scheduled air transportation service performed by an air carrier where the entire capacity of one or more aircraft, or, less than the entire capacity of an aircraft, has been engaged for the movement of persons and their personal baggage or for the movement of property on a time, mileage or trip basis:

1.2.8.1 By a person for his own use (including a direct air carrier when such aircraft is engaged solely for the transportation of company personnel or commercial traffic in cases of emergency);

1.2.8.2 By a representative (or representatives acting jointly) of a group for the sue of such group (provided no such representative is professionally engaged in the formation of groups for transportation or in the solicitation or sale of transportation services); or

1.2.8.3 By an airfreight forwarder holding a currently effective permit.

1.2.9 "Citizen of the Philippines" means (a) an individual who is a citizen of the Philippines, or (b) a partnership of which each member is such an individual or (c) a corporation or association created or organized under the laws of the Philippines, of which all the executive and managing officers and two-thirds or more of the Board of Directors are citizens of the Philippines, and in which sixty per centum (60%) of the voting interest is owned and controlled by persons who are citizens of the Philippines.

1.2.10 "Domestic air carrier" means an air carrier who is a citizen of the Philippines and who possesses a duly issued and valid Certificate of Public Convenience and Necessity (CPCN) or Temporary Operating Certificate (TOC).

1.2.11 "Domestic air commerce" means and includes air commerce within the limits of the Philippine territory.

1.2.12 "Domestic air transportation" means air transportation within the limits of the Philippine territory.

1.2.13 "Designated International Air Carrier" or "Official International Air Carrier" is a domestic air carrier, who possesses a duly issued and valid CPCN, or TOC to operate scheduled international air transportation under the terms of an Air Services Agreement or other similar air services arrangement to which the Philippines is a party, and who is duly designated and authorized by the President of the Philippines, upon recommendation of the Board.

1.2.14 "Fare" is a payment in consideration for the carriage of a passenger.

1.2.15 "Foreign air carrier" means an air carrier who is not a citizen of the Philippines, and/or an air carrier other than a domestic air carrier.

1.2.16 "Foreign air carrier's permit" (FACP) or "Permit" is a permit issued by the Board, and approved by the President of the Philippines, authorizing a foreign air carrier to engage in foreign air transportation.

1.2.17 "Foreign air transportation" means air transportation between the Philippines and any place outside it or wholly outside the Philippines

1.2.18 "Freedom of the Air" shall mean the following:

1.2.18.1 "First freedom" is the privilege, in respect of scheduled international air services, granted by one State to another State to fly across its territory without landing.

12.18.2 "Second freedom" is the privilege, in respect of scheduled international air services, granted by one State to another State or States to land in its territory for non-traffic purposes.

1.2.18.3 "Third freedom" is the privilege, in respect of scheduled international services, granted by one State to another State to put down, in the territory of the first State, traffic coming from the home State of the carrier.

1.2.18.4 "Fourth freedom" is the privilege, in respect of scheduled international air services, granted by one State to another State to take on, in the territory of the first State, traffic destined for the home State of the carrier.

1.2.18.5 "Fifth freedom" is the privilege, in respect of scheduled international air services, granted by one State to another State to put down and to take on, in the territory of the first State, traffic coming from or destined to a third State.

1.2.19 "Frequency" refers to the number and/or sequence of flights from a point of origin to a destination and back on the authorized route.

1.2.20 "Gateway" or "gateway point" refers to any point of last departure or first arrival of air transportation from or into the State granting rights under the Air Services Agreement or other arrangements.

1.2.21 "International air transportation" or "foreign air transportation" means air transportation between the Philippines and any place outside it, or wholly outside the Philippines.

1.2.22 "Non-scheduled air service" is a commercial air transport service other than a "scheduled air service".

1.2.23 "President" means the President of the Republic of the Philippines.

1.2.24 "Rate" is a payment in consideration for the carriage of cargo.

1.2.25 "Route rights" refers to a market access right which is expressed as an agreed geographic specification, or combination of geographic specifications, of the route or routes over which an air service or services may be held out and performed and of the order in which authorized places may be served.

1.2.26 "Scheduled Service" refers to air transport service operated by an air carrier under its approved and published routes, timetable and tariffs.

1.2.27 "Tariff" means the prices to be charged for the carriage of passengers, baggage or cargo and the conditions under which those prices apply, but excluding remuneration and conditions for the carriage of mail.

1.2.28 "Temporary Operating Certificate" (TOC) is an authorization issued by the Board for a fixed term for the operation of scheduled or non-scheduled services by an air carrier pending the issuance of an authority to operate, or a Certificate of Public Convenience and Necessity (CPCN).

1.2.29 "Temporary Operating Permit" (TOP) is an authorization issued by the Board for a fixed term for the operation of scheduled or non-scheduled services by an air carrier pending the issuance of an authority to operate or a Foreign Air Carrier's Permit (FACP).

1.2.30 "Traffic" means the quantity of air transportation that has been sold and transported.

1.2.31 "Traffic right" is a market access right expressed as an agreed physical or geographic specification, or combination of specification of who or what may be transported over an authorized route or parts thereof in the aircraft authorized.

RULE II

International Air Transportation

1.0 Official International Air Carriers.

1.1 Any domestic air carrier possessing a valid CPCN or TOC can be designated as official international air carrier by the President upon recommendation of the Board. There shall be at least two (2) designated official international air carriers of the Philippines.

1.2 A domestic air carrier wishing to be a designated official international air carrier shall apply in writing with the Board, furnishing all official international air carriers copies thereof, specifying the desired route rights it wants to be designated to, the frequencies and capacities it requires per week, its aircraft configuration including its weekly schedules and start up dates. After due hearing, the Board shall review and assess the request of the applicant against existing provisions of the route rights in the ASA and shall issue a decision within thirty (30) days from submission of the application for resolution.

1.3 The Board, in determining whether to grant a request for designation as official international air carrier shall consider, among others, the following factors:

a) Volume of the Third (3rd) and Fourth (4th) freedom market;

b) Number of air carriers currently operating the route applied for;

c) Capacity offered by the air carriers currently operating the route;

d) The ability and willingness of the incumbent air carriers to serve the requirements of the route; and

e) Number of entitlements that remain unutilized.

1.4 The Board shall keep a record of the proceedings of its deliberation on and recommendations to the President regarding the designation of an official international air carrier. Such record shall, in whole or in part, be made available to the public upon written request, due consideration being paid to the interests of national security. The recommendation to the President shall be contained in an appropriate resolution of the Board.

1.5 The designation of an official international air carrier under a specific ASA shall be made by the President upon recommendation of the Board. The Board shall, within three (3) working days from receipt of the designation from the President, forward a certified true copy of the designation to the Department of Foreign Affairs which shall convey the same to the foreign country concerned, who is a party to an ASA, through diplomatic channels, also within a period of three (3) working days from its receipt of the copy of the designation. The Department of Foreign Affairs shall, upon receipt of the notice of acceptance of the designation from such foreign country, forward the same to the Board, within the same period. Upon receipt of the said notice of acceptance of the designation, the Board shall, within the same period, notify the air carrier concerned of the perfection of its designation together with the advice that the air carrier concerned must mount its first flight within a period of six (6) months from the date of its receipt of the said notice of designation.

1.6 The designation of an official international air carrier shall only be to a particular route right or a group of route rights existing under any number of ASA's that the country has with any foreign country and based on the particulars of their application with the Board.

1.7 The Board shall, whenever feasible, initiate consultation talks in relation to existing ASA's and other arrangements so that such ASA's and other arrangements shall provide for dual or multiple designation of air carriers.

1.8 Whenever there are more air carriers than the number allowable vying for designation under a specific ASA, or whenever the remaining capacity entitlements under a specific ASA permit only one official international air carrier to be additionally designated, the Board shall determine the best qualified among the aspiring air carriers in a hearing called for such purpose in accordance with these rules and other pertinent existing laws, rules and regulations.

1.9 Additional air carrier(s) may, upon application and after due notice to the affected official international air carrier(s) and hearing, be designated on a route already being served by designated official international air carrier(s) if the latter do(es) not service the total frequency entitlement of the Philippines under existing ASA or similar air services arrangements.

1.10 The Board may, motu proprio, or upon petition by any interested party, for cause and after due notice and hearing, recommend the revocation, amendment or cancellation of an official international air carrier's designation, if it is shown that the said official international air carrier has not operated the approved schedule(s) or service for a continuous period of six (6) months following the date of its designation or stoppage of operation, as the case may be, without any justifiable reason(s) or otherwise upon a finding that the said designation does not benefit the national interest.

2.0 Foreign Air Carrier

2.1 A foreign air carrier wishing to operate in the Philippines under an existing ASA shall apply for a Foreign Air Carrier's Permit (FACP) with the Board in accordance with Economic Regulation No. 1, Chapter IV. Only foreign air carriers duly designated by their respective governments with which the Philippines has an ASA can qualify for a FACP.

2.2 The Board shall, subject to the confirmation by the President, have the sole prerogative to grant all frequencies or capacities or increase existing frequencies or capacities and/or grant new routes or traffic points to any foreign air carrier, even if only on a provisional basis.

2.3 The Board may, after due notice and hearing and when in its judgment the national interest so requires, grant to any foreign air carrier an increase in frequencies and/or capacities on international routes, provided that the utilization of such increase shall not exceed a period of thirty (30) days which shall take effect on the date of its approval by the President.

2.4 A designated foreign air carrier shall be authorized by the Board to operate the existing routes granted by the Philippines in accordance with the schedules as outlined in the ASA.

2.5 All foreign air carriers shall exercise only such rights and privileges that have been specified in their FACP.

3.0 Traffic Rights and Routes.

3.1 The Board shall ensure that the exchange of traffic rights and routes shall be made through bilateral air services negotiations/consultations or other arrangements, and confirmed through the diplomatic channels. Pending such confirmation, the Board may give provisional effect to the agreement if the national interest so requires.

3.2 In determining any exchange of traffic rights and routes with other countries, the Board shall consider national interest and reciprocity. In determining what is the "national interest", the Board shall consider the promotion of international trade, foreign investments and tourism, national security, users of air services, the status of bilateral relations, the development and viability of civil aviation in the country and other political or diplomatic considerations.

3.3 Third and Fourth Freedoms of the Air shall be exchanged on the basis of reciprocity and value for the Philippines. They shall form the basis for establishing the basic traffic capacity in a given route. The term "reciprocity" shall mean the exchange of rights, freedoms and opportunities of equal or equivalent value.

3.4 The grant of Fifth Freedom traffic shall be secondary and supplemental to third and fourth freedom traffic. Fifth freedom traffic shall be granted only if it would contribute to the development of routes and destinations or other arrangements wherein equal or equivalent benefits may be derived accordingly.

3.5 The Board shall promote new gateways in the Philippines and shall endeavor to encourage foreign and domestic air carriers to serve these new gateways.

4.0 Frequency and Capacity.

4.1 Each designated official international air carrier shall, as far as practicable, be granted an equal opportunity to operate the international route for which it has been designated. The Board shall consider all relevant circumstances in the allocation of frequency and capacity rights.

4.2 If a designated official international air carrier cannot service its allocated entitlement within six (6) months from the date of its allocation, such allocation, together with any other unused entitlements shall, after due notice and hearing, be allocated to other official international air carrier(s) on the same route who apply for the same and is/are fully utilizing their current allocation. This period may be extended only for a maximum period of another six (6) months upon a showing that the total entitlement could not be operated due to unforeseen or unavoidable circumstances or for other reasons which the Board may consider to be satisfactory. The other designated official international air carriers shall have the same period of six (6) months within which to operate the additional allocation, otherwise, the Board may recommend the designation of additional official international air carrier(s) to operate the unused entitlements.

4.3 The same rule shall apply if a designated official international air carrier is found by the Board, after due notice and hearing, to have failed to operate its assigned route or to have operated below its capacity allocation for a period of six (6) months after it had already begun operating its routes or fully used its capacity allocation, in which case, the unused route shall be made available to other designated official international air carrier(s) on the same route who apply for the same and is/are fully utilizing their current allocation.

4.4 Whenever feasible, each ASA and other air service arrangements should treat pure cargo services as separate from passenger service or from combined service, with pure cargo service having its own provisions for designation of air carriers, capacity and frequency entitlements.

5.0 Tariff and Fares.

5.1 The Board shall ensure that consumers are not subjected to discriminatory prices or practices or prices that are unreasonably high or restrictive due to abuse of dominant position. Likewise, no air carrier shall engage in predatory pricing resulting in artificially low or uneconomic prices.

5.2 The Board shall regulate the fares, rates and charges of foreign designated air carriers in accordance with existing laws. Reciprocity and value for the Philippines shall be considered in granting discounted or promotional fares and rates. The Board shall see to it that substantially similar applications of Philippine official international air carrier(s) with the home country of the applicant foreign air carrier will be given equal treatment. If the Philippine official international air carrier(s) is/are not accorded equal treatment, the Board should deny the foreign air carrier's application or cancel the authorization it has already granted, as the case may be.

5.3 The Board shall adopt measures to ensure, to the extent possible, that air transportation tickets of Filipino citizens residing in the Philippines shall be purchased, issued and paid in the Philippines.

5.4 It is the duty of the Board to investigate and initiate actions against any practice or violation of the above pricing mechanisms.

6.0 Non-Scheduled Services and Charter Flights.

6.1 Special flights may be authorized by the Board whenever the designated official international air carriers servicing a particular route are temporarily unable to accommodate traffic demand due to emergencies or other extra-ordinary circumstances. Special flights shall be authorized for such reasonable periods but the same shall be automatically revoked once the designated official air carrier(s) is/are able to accommodate the traffic demand.

6.2 The Board may authorize charter flights and non-scheduled services provided the traffic of the scheduled services shall not be significantly diverted. The Board shall maintain the essential distinctions between scheduled and non-scheduled services in granting applications for permit to operate in order to prevent the non-scheduled or charter operations from supplanting the services of the scheduled operators and impairing the latter's economic viability. Non-scheduled and charter operations shall not be allowed to publish any scheduled timetable nor advertise to the general public. However, the Board shall allow multiple entity charter both for passengers and cargoes.

6.3 Subject to the conditions stated in Section 6.2 above, the Board shall encourage the operation of charter flights by placing, to the greatest extent possible, the least number of restrictions on their operation and marketing.

6.4 The Board shall, whenever the national interest so requires, grant applications for a series of charter flights and may, in addition, waive any provision of its Economic Regulation No. 2 in accordance with its Resolution No. 79, series of 1976.

7.0 Developmental and Cooperative Air Services.

7.1 Upon its own initiative, or upon the application of an official international air carrier or a foreign air carrier possessing a valid FACP or TOP, the Board may, after due notice and hearing, and for a maximum period of one (1) year, grant authority to such air carrier to operate air services for the development of unserved routes, destinations and gateways.

7.2 The Board shall grant authority for the operation of air services connecting non-premier city airports of other countries to new international gateways of the Philippines for the purpose of promoting the country's economic cooperation agreements with such other countries for a maximum period of one (1) year.

7.3 After the expiration of the one (1) year period to operate and provided that the air carrier concerned has satisfactorily served the route granted, the said air carrier shall be given an opportunity to continue serving the route under an appropriate ASA, or similar air services arrangement.

8.0 Philippine Air Negotiating Panel.

8.1 A single negotiating panel, to be known as the "Philippine Air Negotiating Panel" or "Air Panel", for short, shall represent the Philippines in all negotiations leading to the conclusion of ASA's or similar arrangements. The Air Panel shall be composed of representatives of the following government agencies:

Department of Transportation	-	Chairman
	and Communications
Department of Foreign Affairs	-	Vice-Chairman
Department of Tourism	-	Member
Department of Trade and Industry	-	Member
Civil Aeronautics Board	-	Member

and such other person/s as may be authorized by the President.

8.2 The Chairman of the Air Panel shall be designated by the Secretary of the Department of Transportation and Communications, while the Vice-Chairman thereof shall be designated by the Secretary of the Department of Foreign Affairs. The Secretary of the Department of Tourism and the Secretary of the Department of Trade and Industry shall designated their respective representative to the Air Panel. The Chairman of the Board shall designate, from among the directors of the Board, the Board's representative to the Air Panel.

8.3 The representative/s of the designated or official international air carrier/s in the route subject of the negotiations or consultations, or of any official international air carrier/s interested to operate such route, shall be included in the Air Panel but only as observer/s or resource person/s.

8.4 Prior to any air negotiations or air consultation talks, the Air Panel Chairman shall first convene the Philippine Air Panel to establish the parameters for the negotiations. For this purpose, the designated or official international air carrier/s in the route subject of the proposed negotiation or consultation, or any official international air carrier/s interested to operate such route shall be included in such meeting/s. The Air Panel shall also allow the users of air transportation services to submit their position papers bearing on the matter subject of the proposed negotiation or consultation. In addition thereto, the Air Panel, at its own discretion, may call for a consultation meeting to allow such users of air services to be heard on the matter. The minutes of the Philippine Air Panel meetings shall be taken in writing and confirmed by the members of the Air Panel.

8.5 In every air negotiation or air consultation talk, the Air Panel Chairman shall fully brief the Air Panel members regarding the document proposed to be signed by the former. Any objection expressed by any Air Panel member to certain provisions of the document shall be duly noted and recorded whenever the same is overruled by the Air Panel Chairman. If no objection is recorded, it shall be assumed that the Air Panel members gave their unanimous consent to the signing of the document.

8.6 The establishment of bilateral air services relations with another country or territory shall be made upon the recommendation of the Board.

8.7 All official communications to and from the Government of the Republic of the Philippines concerning air negotiations or air consultation talks shall, in accordance with the provisions of the Administrative Code of 1987, be coursed through the Department of Foreign Affairs. Preliminary or exploratory communications concerning the possibility of feasibility of holding air negotiations or air consultation talks, through official in character, may however be exchanged directly between the Air Panel or the Board, as the case may be, with its respective counterpart in the foreign State concerned.

8.8 The venue of air consultation talks shall, as far as practicable, alternate between the identified cities of the Philippines and the other contracting State. If the other contracting State proposed the air negotiation talks, the same shall, as much as possible, be held in the Philippines.

8.9 The Air Panel Chairman shall be provided technical and secretariat support by his agency, DFA and the Board.

8.10 An ASA, or any amendment thereto, and similar air services arrangements, agreed upon during air negotiation or air consultation talks, shall take effect only after compliance with the internal ratification requirements of the Philippine government, in consonance with relevant provisions in the ASA or agreement. Such ASA, amendment or similar air services arrangements may be accorded provisional effectivity by the Board if a pressing national interest so requires.

8.11 It shall be the responsibility of the Air Panel Chairman to transmit to the DFA the original copy of the document embodying the ASA, or any amendment thereto, or similar air services arrangements. The DFA shall thereafter be responsible for transmitting the said original copy for purposes of registration and safekeeping with the International Civil Aviation Organization (ICAO) Headquarters in Montreal, Canada.

8.12 Whenever appropriate, the Air Panel Chairman and/or the spokesman duly designated by the Air Panel may issue any press release regarding the events which transpired in the course of the negotiations or consultations. No other public statement on behalf of the Air Panel shall be made by any other Air Panel member unless there is prior consent by the Air Panel or the Air Panel Chairman. The Air Panel shall mete out the appropriate sanctions against any Air Panel member who violates or otherwise causes the violation of this rule.

RULE III

Domestic Air Transportation

1.0 Entry Into and Exit From the Industry.

1.1 To the extent allowed by law, the domestic air transportation industry shall be liberalized. The liberalization of domestic air transportation shall mean that the Board shall encourage the operation of multiple domestic air carriers on all domestic routes.

1.2 A minimum of two (2) operators on each domestic route/link shall be encouraged. Routes/links presently serviced by only one (1) operator shall be open for entry to additional operator(s).

1.3 Under ordinary circumstances, domestic carriers operating the domestic routes shall file with the Board any application for change(s) in frequencies, times of operation, routing and type of service, aircraft type and other similar changes in operational matters, at least fifteen (15) calendar days prior to the intended effectivity date of such change(s). The Board reserves the right to deny or modify any change(s) applied for by the carrier if public interest so requires. Changes in schedules shall be published by the air carrier concerned in a newspaper of general circulation for at least two (2) times and posted in airport(s) affected by such changes.

Application for change(s) in operational matters due to fortuitous events or force majeure, such as technical problems and other similar operational exigencies, may be filed within a shorter period commensurate with the nature of the exigency.

1.4 The right of an existing operator to leave a particular route shall be recognized subject, however, to the statutory obligation under Sec. 11 of R.A. 776 that no air carrier shall abandon any route, or part thereof for which a permit has been issued, unless upon a finding by the Board that the continued operation or servicing of the route is uneconomical and the public interest is not prejudiced by its abandonment.

2.0 Tariffs.

2.1 To the extent allowed by law, domestic rates, charges and fares shall be liberalized. The Board shall, however, continue monitoring all freight rates, charges and passage rates.

2.2 Applications for the adoption of rates, charges and fares for domestic air transportation shall be filed with the Board at least thirty (30) calendar days prior to the intended date of effectivity of the new rates, charges and fares. All rate, charges and fare applications approved or deemed approved by the Board shall be published by the applicant for at least two (2) times in a newspaper of general circulation and posted in the affected airport(s).

2.3 For domestic routes/links operated by more than one (1) air carrier, the application for adoption of rates, charges and fares shall be deemed automatically approved on the thirtieth (30th) calendar day after filing thereof, unless the Board, after taking into consideration the factors enumerated in Section 10, (C) (2) of R.A. No. 776, disapproves the same before the lapse of the said 30-day period.

2.4 For domestic routes/links operated by only one (1) air carrier, rates, charges and fares shall continue to be regulated by the Board taking into consideration the factors enumerated in Section 10, (C) (2) of RA. No. 776.

2.5 No air carrier shall perform any charter trips unless such air carrier shall have on file with the Board a currently effectively tariff, duly approved by the Board, showing all rates, fares and charges for such charter trips and showing the rules, regulations, practices and services in connection with such transportation in accordance with Economic Regulation No. 2, Chapter II, Section 8.

RULE IV

Violations And Penalties

Any violations of the provisions of Executive Orders Nos. 219, 32 or this IRR shall be penalized in accordance with the pertinent provisions of R.A. 776.

RULE V

Reservation Clause

The Board reserves the right to amend, repeal or modify this IRR as warranted by circumstances or events to which the objectives of Executives Orders Nos. 219 and 32, and consistent with the provisions of RA 776, may best be served.

RULE VI

Separability Clause

If any section or any part of this IRR shall be declared unconstitutional by a competent authority, the remaining sections or parts thereof shall not thereby be affected.

RULE VII

Repealing Clause

All other resolutions, economic regulations and other issuances by the Board which are inconsistent with the herein provisions are hereby amended, repealed or modified accordingly.

RULE VIII

Effectivity

These rules shall take effect fifteen (15) days after its publication in a newspaper of general circulation. A copy of these rules shall be deposited with the University of the Philippines Law Center in compliance with the Revised Administrative Code of 1987.

Mandaluyong City, Philippines.

(SGD.) SEC. PANTALEON D. ALVAREZChairmanDepartment of Transportation and Communications

(SGD.) M/GEN. ADELBERTO F. YAP (Ret.)Vice Chairman

(SGD.) MR. ALBERTO A. LIMMemberCivil Aeronautics Board

(SGD.) ATTY. LITO A. MONDRAGONMemberCivil Aeronautics Board

Attested by:

(SGD.) ATTY. CARMELO L. ARCILLADeputy Executive Director(Acting Board Secretary)Civil Aeronautics Board