Civil-Aeronautics-Board

1. Civil Aeronautics Board
Introduction

2. Difference Between CAAP and CAB
The CAB regulates the economic aspect of air
transportation, while CAAP, regulates the technical
and operational aspects of air transportation.

5. CAB Logo

6. Headquarters
It is adjacent to the MIAA administration building.

9. Location:
Old, NAIA Rd,
Pasay,
1300 Metro
Manila
Office Hours:
8 AM – 5 PM

10. DATE OF
ESTABLISHMENT
December 5, 1932

11. Brief History
• Legislative Act No. 3909 passed by the Philippine
Legislative on November 20, 1931 created an Office
under the Department of Commerce and Communications
to handle aviation matters, particularly the enforcement of
rules and regulations governing commercial aviation as
well as private flying.

12. • On December 5, 1932, Act No. 3909 was amended
by Act No. 3996, which created the Division of
Aeronautics, is responsible for the administration of civil
aviation under the general supervision of the Secretary of
Public Works and Communications.

13. On April 13, 1987, by virtue of Executive Order
No. 125, the Civil Aeronautics Board was
transferred to the Department of Transportation
and Communications as an attached agency.

14. Civil Aeronautics Board
Present Officers

15. CAB Chairman of the Board
Secretary Arthur P. Tugade
Department of Transportation
CAB Vice Chairman of the Board
Secretary Bernadette Romulo-Puyat
Department of Transportation

16. CAB Vice Chairman of the Board
Director-General Jim C. Sydiongco
Civil Aviation Authority of the Philippines
CAB Board Member
Col. Edmundo Fernandez Gammad PAF (Ret)
Civil Aeronautics Board

17. Executive Director
Atty. Carmelo L. Arcilla
Civil Aeronautics Board
Deputy Executive Director
Mr. Porvenir P. Porciuncula
Civil Aeronautics Board

18. Administrative Division : Atty. Rhea Joy Morales-Gonzalez
Financial and Management Division: Ms. Gilda G. Sañosa
Air Carriers Account and Field Audit Division:
Atty. Maria Cecilia C. Paguirigan
Air Operating Rights Division: Atty. Eldric Paul A. Peredo
Planning and Research Division: Mr. Jesus F. Ibay, Jr.
Hearing Examiners Division: Atty. Maria Elben S.L. Moro
Legal Division: Atty. Wyrlou E. Samodio

19. Civil Aeronautics Board
Organizational Structure

21. PERMITS ISSUED BY THE CAB
Certificate of Public Convenience and Necessity (CPCN)
- is a permit issued by the Board authorizing a domestic
person or entity (60/40 equity) to engage in international
and/or domestic, scheduled and/or non-scheduled air
transportation services. A grantee of a CPCN may operate
even without a legislative franchise.

22. PERMITS ISSUED BY THE CAB
Foreign Air Carrier’s Permit (FACP)
– 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 services.

23. PERMITS ISSUED BY THE CAB
Letter of Authority
– - is an approval issued by the CAB authorizing a person or
entity to engage in airfreight forwarder, general sales agent,
cargo sales agent and off-line carrier. It is signed by the
Executive Director subject to the ratification of the Board on
its scheduled meeting.

24. Functions
The CAB is mandated to regulate the economic aspect of air
transportation, and shall have the general supervision,
control and jurisdiction over air carriers, general sales
agents, cargo sales agent, and air freight forwarders as well
as their property, property rights, equipments, facilities, and
franchise.

25. Functions
Establish and prescribe the corresponding rules
and regulations in the enforcement and
monitoring of compliance of the laws governing
stakeholders engaged in air commerce.

26. Functions
Determine, fix and/or prescribe charges
and/or rates pertinent to the services in
connection with air commerce

27. Functions
Acts as vice-chairman of the Philippines Air
Panel in the negotiations and consultations
of air agreement with foreign governments
for the promotion, establishment, or
development of foreign air transportation

28. Functions
Participates in bilateral, regional, and
international fora relating to air
transportation matters.

29. Mission
To enhance air transport connectivity and adequate air
services through responsive policies and regulations in
partnership with the stakeholders, supported by competent
and professional staff.

30. Vision
To be known as a professional and competent air
transport regulatory agency that promotes the
growth and development of air transport
connectivity as well as passenger
welfare and convenience.

31. CURRENT ISSUES
BEING TACKLED BY THE
CIVIL AERONAUTICS
BOARD

32. Airlines seek higher fuel surcharges
(May 29, 2018)
Due to the surging global oil prices and the weakening of the peso, airline
operators in the Philippines have asked regulators for an increase in fuel
surcharges, potentially jacking up the cost of air transportation.
“The effect of fuel price and currency has been significant for us,” Lance
Gokongwei, president and chief executive officer of Cebu Air Inc. told
reporters after the stockholders meeting.

33. Airlines seek higher fuel surcharges
(May 29, 2018)
Gokongwei estimated the effect of fuel on Cebu Air, operator of Cebu Pacific
airline at P20 million per month for every $1 increase in fuel prices while the
weakening of the peso is costing additional P65 million per month. In sum,
the combined impact of higher fuel prices and weaker peso is costing Cebu
Air P700 million monthly to fly the same fleet, he said.
“To avoid losses, we will try to become more efficient but likewise, we have
applied for fuel surcharge increase with the CAB (Civil Aeronautics Board),”
Gokongwei said.

34. Airlines seek higher fuel surcharges
(May 29, 2018)
Cebu Air petitioned for an increase in fuel charges by P70 to P250 for
domestic flights. “This recovers approximately just half of the increased
cost we’re facing, so we’re really trying to minimize the increase to the
lowest possible amount,” he said.
The fuel surcharge is typically granted by the CAB to help airlines recover
part of volatile fuel costs, which usually constitutes an airline’s single-
biggest operating expense.

35. Airlines seek higher fuel surcharges
(May 29, 2018)
Flag carrier Philippine Airlines have likewise petitioned the CAB for an
increase in fuel surcharge, which the rate depending on the route.
“It has been with the CAB for more than three months but no action yet,”
PAL president Jaime Bautista said.

36. CAB to hear PAL fuel surcharge petition
(June 25, 2018)
The Civil Aeronautics Board (CAB) is set to hold a hearing on the petition
flag carrier Philippine Airlines (PAL) and sister carrier PAL Express to
impose a fuel surcharge amounting to P158 up to P405 on domestic
flights next month.
A regulatory filing showed PAL and PAL Express are seeking to impose
fuel surcharge for domestic flights.

37. CAB to hear PAL fuel surcharge petition
(June 25, 2018)
In particular, PAL and PAL Express want to impose fuel surcharge for
each way for flights from Luzon to Luzon or Visayas (P282), Luzon to
Mindanao (P405), Visayas to Visayas (P158), and Mindanao to Visayas or
Mindanao (P222).
The case is scheduled for hearing on July 10.

38. CAB to hear PAL fuel surcharge petition
(June 25, 2018)
When PAL filed a petition with the CAB to impose fuel surcharge worth P51 to
P207 to recover higher costs of fuel, company president and chief operating
officer Jaime Bautista said earlier the carrier would update the figure and
amend its petition as fuel prices continued to rise.
He said the price of fuel rose by $13 from January to April.
As PAL is set to consume 11 million barrels of fuel this year, the $13 increase
in fuel price would result in $143 million worth of additional cost to the
carrier.

39. House leaders propose the abolishment
of CAB and transfer its functions to CAAP
(May 26, 2018)
House leaders, led by Speaker Pantaleon Alvarez are proposing to abolish the Civil
Aeronautics Board (CAB) and transfer its functions to the Civil Aviation Authority of the
Philippines (CAAP).
Alvarez said the regulation of the economic aspect of the air transportation should be
given to the CAAP.
“At present, each airport in the country acts independently of other airports and is
operated and/or managed by a specific entity. There is no overall regulatory power that
sets uniform standards for all airports to follow,” he said.

40. House leaders propose the abolishment
of CAB and transfer its functions to CAAP
(May 26, 2018)
“Moreover, given that airport entities regulate themselves, there is a high risk
of conflict of interest arising. After all, the merger of regulator and operator is
rife with risks. It is not a sound policy,” the House chief pointed out.
Alvarez said to address the situation, the CAAP’s current powers should be
expanded by regulating all airports with legislative franchise and abolish the
CAB and transfer its current functions to the CAAP.

41. House leaders propose the abolishment
of CAB and transfer its functions to CAAP
(May 26, 2018)
Alvarez, along with Majority Leader Rodolfo Fariñas, Minority Leader
Danilo Suarez and Catanduanes Rep. Cesar Sarmiento filed House Bill
7407 making CAAP the central regulatory agency for both the economic
and technical aspects of the country’s aviation system.
“The reason behind requiring it is to include more scrutiny and more
transparency into the credentials and capability of those who wish to
operate airports,” Alvarez said.

42. House leaders propose the abolishment
of CAB and transfer its functions to CAAP
(May 26, 2018)
“At the end of the day, after the legislative queries have concluded, only
operators who are truly capable of complying with the highest standards
that must be expected from airports will be allowed to operate,” he said.

43. Any Questions?