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

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 bonafide employee of an air
carrier, who pursuant to an authority from an airline, by itself or through an
agent, sells or offers for sale any air transportation, or negotiates for, or
holds himself out by solicitation, advertisement or otherwise as one who sells,
provides, furnishes, contracts or arranges for, such air transportation.

“(kk) ‘Cargo sales agent’ means any person who does not directly operate an
aircraft for the purpose of engaging in air transportation or air commerce and
not a bona-fide employee of an air carrier, who, as principal or agent, sells or
offers for sale any air transportation of cargo, or negotiates for, or holds
himself out by solicitation, advertisement, or otherwise as one who sells,
provides, furnishes, contracts or arranges for, such air transportation of
cargo.

“(ll) ‘Air freight forwarder’ means any indirect air carrier which, in the
ordinary and usual course of its undertaking, assembles and consolidates or
provides for assembling and consolidating such property or performs or provides
for the performance of break-bulk and distributing operations with respect to
consolidated shipments, and its responsible for the transportation of property
from the point of receipt to point of destination and utilizes for the whole or
any part of such transportation the services of a direct air
carrier.”

Chapter III — Civil Aeronautics Board

SEC. 2. Section 5 of Republic Act Numbered Seven Hundred and
Seventy-Six is hereby amended to read as follows:

“SEC. 5. Composition of the Board.—The Civil
Aeronautics Board shall be composed of the Minister of Tourism as Chairman, the
Director of the Civil Aeronautics Administration as Vice Chairman, the
Commanding General of the Philippine Air Force and two members to be appointed
by the President of the Philippines. They shall hold office at the pleasure of
the President. All members of the Board shall be entitled to a per diem of Five
Hundred Pesos per member for each meeting actually attended by them, which shall
in no case exceed Two Thousand Pesos a month. In case of absence or incapacity
of the Minister of Tourism, the Director of the Civil Aeronautics Administration
shall act as Chairman.

No member of the Board shall have any pecuniary interest in, or own any stock
or bond of, in any civil aeronautics enterprise.”

SEC. 3. Section 6 of Republic Act Numbered Seven Hundred and
Seventy-Six is hereby amended to read as follows:

“SEC. 6. Principal Office and Quorum.—The Board
shall have its principal office in Metro Manila and may hold hearings on any
proceedings at such time and places within the Philippines as it may provide by
order in writing. The Chairman or the Vice Chairman and two members of the Board
shall constitute a quorum.”

SEC. 4. Section 7 of Republic Act Numbered Seven Hundred and
Seventy-Six is hereby amended to read as follows:

“SEC. 7. Permanent Personnel.—The Board shall have
an Executive Director, a Deputy Executive Director, and a Board Secretary who
shall be a member of the Philippine Bar. The Executive Director shall be the
Chief Executive of the Board and shall have a compensation of Thirty Seven
Thousand Pesos per annum and such other allowances as may be authorized by the
Board. He will be assisted by the Deputy Executive Director who shall receive a
salary of Thirty Thousand Pesos per annum and such other allowances as the Board
may authorize. The Board Secretary shall record all proceedings of the Board,
take charge of and keep all its papers, and perform such other duties as may be
prescribed by the Board. The Board shall have Chiefs of the Technical Divisions,
and such other officers and employees as may be required by the Board in the
performance of its functions and duties. The Board Secretary, together with the
Chiefs of the Technical Divisions, shall receive a compensation of Twenty-Four
Thousand Pesos per annum and such other allowances as the Board may
authorize.

In the absence of the Executive Director and the Deputy Executive Directors,
the Chairman may designate a senior member of the staff who shall act as
Officer-in-Charge.”

SEC. 5. Section 8 of Republic Act Numbered Seven Hundred and
Seventy-Six is hereby amended to read as follows:

“SEC. 8. Temporary Personnel.—The Chairman, upon
recommendation of the Board, may engage, for temporary service such duly
qualified consultants, experts and agencies and/or other qualified persons as
are necessary and shall fix their compensation.”

SEC. 6. Paragraph (A), and Sub-paragraphs (3) and (4) of
Paragraph (c) of Section 10 of Republic Act Numbered Seven Hundred and
Seventy-Six are hereby amended to read as follows:

“SEC. 10. Powers and Duties of the Board.—(A)
Except as otherwise provided herein, the Board shall have the power to regulate
the economic aspect of air transportation, and shall have the general
supervision and regulation of, the jurisdiction and control over air carriers,
general sales agents, cargo sales agents, and airfreight forwarders as well as
their property, property rights, equipment, facilities and franchise, insofar as
may be necessary for the purpose of carrying out the provision of this Act.

“(C) (3) To authorize any type of charters whether domestic or international
and special air services or flight under such terms and conditions as in its
judgment public interest requires. Notwithstanding the existence of bilateral
air agreement, the CAB is authorized to grant any foreign airline increase in
frequencies and/or capacities on international routes when in its judgment the
national interest requires it, provided that the utilization of the increase
frequencies and capacities is not more than thirty days. All grants of
frequencies and/or capacities shall be subject to the approval of the
President.

“(C) (4) To approve or disapprove increase and/or decrease of capital, lease,
purchase, sales or aircraft of air carrier engages in air commerce;
consolidation, merger, purchase, lease and acquisition and control of operating
contracts between domestic air carriers, between domestic and foreign air
carriers, or between domestic air carriers or any persons engaged in any phase
of aeronautics.”

Chapter IV — Certificate of Public Convenience and Necessity

SEC. 7. The first paragraph of Section 11, of Republic Act
Numbered Seven Hundred and Seventy-Six is hereby amended to read as follows:

“SEC. 11. Nature, Terms and Conditions.—Certificate
of Public Convenience and Necessity is a permit issued by the Board authorizing
a person to engage in air commerce and/or air transportation, foreign and/or
domestic. No person shall engage in air commerce unless there is in force a
permit issued by the Board.”

SEC. 8. A new paragraph is hereby added after the first
paragraph of Section 11 Republic Act Numbered Seven Hundred and Seventy-Six,
which read as follows:

“No general sales agent, cargo sales agent or airfreight forwarder shall
engage in any of the activities mentioned in Section 3 paragraphs (jj), (kk),
and (ll) respectively, unless there is in force a permit or any other form of
authorization issued by the Board.”

SEC. 9. Section 23 of Republic Act Numbered Seven Hundred
and Seventy-Six is hereby amended to read as follows:

“SEC. 23. Transfer of Permit.—No permit
may be transferred without the prior approval of the Board.”

Chapter VII —Violation and Penalties

SEC. 10. Paragraph (B) of Section 42 of Republic Act
Numbered Seven Hundred and Seventy-Six is hereby amended to read as follows:

“B. Any air carrier or person who violates or fails to comply with any
provision of this Act of the terms, conditions, or limitations in a permit or
amendment thereto or any orders, rules or regulations issued by the Board, shall
be subject to a fine not exceeding Five Thousand Pesos for each violation. In
addition thereto, a fine not exceeding Two Hundred Pesos per day for every day
during which such default or violation continues shall likewise be imposed. The
Board is hereby empowered to impose such fine, after due notice and hearing.

“The fines so imposed shall be paid to the government of the Philippines
through the Board, and failure to pay fines in any case within the time
specified in the order or decision of the Board shall be a ground for the
suspension of the permit of such air carrier until payment shall be made.
Payment may also be enforced by appropriate action brought to a court of
competent jurisdiction.

“The other fines as penalty for violation prescribed elsewhere under this
section are amended and/or modified accordingly.”

SEC. 11. Section 51 of Republic Act Numbered Seven Hundred
and Seventy-Six is hereby amended to read as follows:

“SEC. 51. Other Fees.—When any act of service has
been performed or rendered by the Civil Aeronautics Administration or the Civil
Aeronautics Board under the provisions of this Act for which no fee has been
fixed by law, such fees shall be collected as may from time to time be
prescribed by the Civil Aeronautics Administration or the Civil Aeronautics
Board, as the case may be: Provided, however, That those to be
prescribed by the Civil Aeronautics Administration shall be with the approval of
the Department Head.”

SEC. 12. All acts, part of acts, executive orders,
ordinances, rules and regulations which are inconsistent with the provisions of
this Decree are hereby repealed, amended or modified accordingly.

Done in the City of Manila, this 11th day of June, in the year of Our Lord,
nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant