Prohibition Against Discriminatory and Destructive Competitive Practices of Non-Scheduled and Charter Operators

June 17, 1974

LETTER OF INSTRUCTIONS NO. 194

Pursuant to the policy of rationalizing the airline industry and the decision to have one economically viable and efficient airline in both the international and domestic operations and in order to foster sound economic conditions in air transportation and to improve and harmonize the relations between schedule and non-scheduled and charter operators in the domestic service, it is hereby directed that the authority granted to Air Manila be limited to the operation of charter flights only, subject to the conditions imposed under Economic Regulation No. 2 of the Civil Aeronautics Board and that the following discriminatory, unduly preferential and destructive competitive practices of non-scheduled and charter operators be prohibited:

1. Operation of regular or scheduled flights between pair of points already served by the scheduled operator and the advertisement of such regular flights by non-scheduled operator in mass media;

2. The sale of air transportation tickets to individual members of the riding public;

3. Confirmation of space for specific non-scheduled flights in advance; and

4. The adoption and collection by non-scheduled operators of rates, fares and charges lower than that established and authorized by CAB for scheduled services.

Immediate implementation of these instructions is desired. cd

DONE in the City of Manila, this 17th day of June, in the year of Our Lord, Nineteen Hundred and Seventy-Four.