yurei.blackthorn@gmail.
com
Regulation of Public Services – CA 146: Public
Service Act – Sec 13.a
Section 13. (a) The Commission shall have
jurisdiction, supervision, and control over all
public services and their franchises, equipment,
and other properties, and in the exercise of its
authority, it shall have the necessary powers
and the aid of the public force: Provided, That
public services owned or operated by
government entities or government-owned or
controlled corporations shall be regulated by
the Commission in the same way as privately-
owned public services, but certificates of public
convenience or certificates of public
convenience and necessity shall not be required
of such entities or corporations: And provided,
further, That it shall have no authority to
require steamboats, motor ships and steamship
lines, whether privately-owned, or owned or
operated by any Government controlled
corporation or instrumentality to obtain
certificate of public convenience or to prescribe
their definite routes or lines of service.
Regulation of Ownership – CA 146: Public
Service Act – Sec 16.a
Section 16. Proceedings of the Commission,
upon notice and hearing. - The Commission
shall have power, upon proper notice and
hearing in accordance with the rules and
provisions of this Act, subject to the limitations
and exceptions mentioned and saving
provisions to the contrary :
(a) To issue certificates which shall be known as
certificates of public convenience, authorizing
the operation of public service within the
Philippines whenever the Commission finds that
the operation of the public service proposed
and the authorization to do business will
promote the public interest in a proper and
suitable manner. Provided, That thereafter,
certificates of public convenience and
certificates of public convenience and necessity
will be granted only to citizens of the
Philippines or of the United States or to
corporations, co-partnerships, associations or
joint-stock companies constituted and
organized under the laws of the Philippines;
Provided, That sixty per centum of the stock or
paid-up capital of any such corporations, co-
partnership, association or joint-stock company
must belong entirely to citizens of the
Philippines or of the United States: Provided,
further, That no such certificates shall be issued
for a period of more than fifty years.
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Regulation of Ownership – RA 9295
SEC. 3. Definition of Terms. - As used in and for
purposes of this Act, the following terms, whether in
singular or plural are hereby defined as follows:
(a) "Domestic shipping" shall mean the
transport of passenger or cargo, or both, by
ships duly registered and licensed under
Philippine law to engage in trade and
commerce between Philippine ports and
within Philippine territorial or internal waters,
for hire or compensation, with general or
limited clientele, whether permanent
occasional or incidental, with or without fixed
routes, and done for contractual or
commercial purposes;
(b) "Domestic trade" shall mean the sale,
barter or exchange of goods, materials or
products within the Philippines;
(c) "Domestic Ship Operator" or "Domestic
Ship Owner" may be used interchangeably
and shall mean a citizen of the Philippines,
or a commercial partnership wholly owned
by Filipinos, or a corporation at least sixty
percent (60%) of the capital of which is
owned by Filipinos, which is duly authorized
by the Maritime Industry Authority (MARINA)
to engage in the business of domestic
shipping;
(d) "Shipper" shall mean any person,
partnership or corporation who shall procure
for itself the services of a domestic ship
operator for the carriage of its cargo in the
domestic trade upon payment of proper
compensation;
(e) "MARINA" shall mean the Maritime
Industry Authority;
(f) "Ship" or "Vessel" may be used
interchangeably and shall mean any kind,
class or type of craft or artificial contrivance
capable of floating in water, designed to be
used, or capable of being used as a means
of water transport in the domestic trade for
the carriage of passengers or cargo, or both,
utilizing its own motive power or that of
another;
(g) "Importation" shall mean the direct
purchase, lease or charter of newly
constructed or previously owned ships, or
the purchase of ship's spare parts from
foreign sources or from registered
enterprises operating in special economic
zones as this terms is defined in Republic
Act No. 7916 entitled, "The Special
Economic Zone Act of 1995,"
(h) "Spare parts" shall mean the replacement
parts or components of vessel, including but
not limited to its hull, engines, machineries,
equipment, appurtenances, necessaries
accessories, article, supplies, materials,
steelplates, aluminum plates, other metal
plates, communications, equipment, and
other parts or components thereof, installed
abroad the ships necessary for its safe and
efficient navigation and operation;
(i) "Certificate of Public Convenience' shall
mean the license on authority issued by
MARINA to a domestic ship operator to
engage in domestic shipping;
(j) "Cargo handling equipment' shall mean
any machinery, gear or equipment used by
the ship operator or a duly authorized and
licensed port operator to service or handle
cargo, on board the vessel at the port or in
the terminal or container yard such as, but
not limited to cranes, forklifts, top lifts,
stackers, tractor heads, containers, pallet
boards and the like, including all spare parts,
replacement parts, appurtenances
accessories, articles, supplies and materials
thereof;
(k) "Shipbuilding" shall mean the design,
construction, launching and outfitting of all
types of ships and watercraft;
(l) "Ship repair" shall mean the overhaul,
refurbishment renovation improvement, or
alteration of the hull, machineries,
equipment, outfits and components of all
types of ships;
(m) "Shipyard" shall mean the shipbuilding or
repair facilities which have the capability to
lift vessels above the waterline in order to
effect ship work on vessels, appendages,
structure, machinery and equipment; and
(n) "Shipbuilder" or "Ship repairer" shall
mean a citizen of the Philippines, or a
commercial partnership owned by majority of
Filipinos or a corporation incorporated under
the laws of the Philippines, the capital of
which is owned or controlled in any
proportion by Filipinos or by foreign
nationals, or by both such Filipinos or foreign
nationals, or by corporations whether Filipino
or foreign-owned, which is duly authorized
by the MARINA to engage in the business of
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shipbuilding or ship repair or to otherwise Regulation of Ownership – RA 776

operate a shipyard, graving dock or marine
repair yard.
Sec. 11. Nature, terms and conditions.
CHAPTER III
DEREGULATION OF THE DOMESTIC SHIPPING A Certificate of Public Convenience and
INDUSTRY-AUTHORITY Necessity is a permit issued by the Board
OF THE MARITIME INDUSTRY AUTHORITY
authorizing a person to engage in air
SEC. 5. Authority to Operate. - No franchise, commerce and/or air transportation, foreign
certificate or any other form authorization for the and/or domestic.
carriage of cargo or passenger, or both in the
domestic trade, shall be granted except of domestic
ship owners or operators. xxx

SEC. 6. Foreign Vessels Engaged in Trade and Sec. 12. Citizenship requirement. Except as
Commerce in the Philippines Territorial Waters. - otherwise provided in the Constitution and
No foreign vessel shall be allowed to transport
passengers or cargo between ports or place within
existing treaty or treaties, a permit authorizing
the Philippine territorial waters, except upon the grant a person to engage in domestic air commerce
Special Permit by the MARINA when no domestic and/or air transportation shall be issued only to
vessels is available or suitable to provide the needed
citizens of the Philippines.
shipping service and public interest warrants the
same.
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Regulation of Rates – CA 146 Regulation of Rates – RA 9295

Section 16. Proceedings of the Commission, SEC. 8. Deregulation of the Domestic Shipping
upon notice and hearing. - The Commission Industry. - In order to encourage investments in
shall have power, upon proper notice and the domestic shipping industry by existing
hearing in accordance with the rules and domestic ship operators and attract new
provisions of this Act, subject to the limitations investment from new operators and investors,
and exceptions mentioned and saving domestic ship operators are hereby authorized
provisions to the contrary : to establish their own domestic shipping rates:
Provided, That effective competition is fostered
xxx and public interest is served.
(c) To fix and determine individual or joint rates, The MARINA shall monitor all shipping
tolls, charges, classifications, or schedules operations and exercise regulatory intervention
thereof, as well as commutation, mileage, where it is established after due process that
kilometrage, and other special rates which shall
public interest needs to be protected and
be imposed observed and followed thereafter
safeguarded.
by any public service: Provided, That the
Commission may, in its discretion, approve SEC. 11. Rates. - Every domestic ship operator
rates proposed by public services provisionally shall have the right to fix its own passenger pr
and without necessity of any hearing; but it cargo rates, or both.
shall call a hearing thereon within thirty days,
thereafter, upon publication and notice to the
concerns operating in the territory affected:
Provided, further, That in case the public service
equipment of an operator is used principally or
secondarily for the promotion of a private
business, the net profits of said private business
shall be considered in relation with the public
service of such operator for the purpose of
fixing the rates.

xxx
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Rule with respect to air transport – RA 776 Rule with respect to air transport – EO 219

Sec. 10. Powers and duties of the Board. (A) Domestic air transportation
Except as otherwise provided herein, the Board
shall have the power to regulate the economic 2.2 Tariffs and Fares. To the extent allowed by
aspect of air transportation, and shall have the law passage freight and other charges shall be
liberalized. However, passage rates shall
general supervision and regulation of, and
likewise be deregulated for routes/links
jurisdiction and control over, air carriers …
operated by more than one (1) common carrier.
xxx For routes serviced by a single operator,
passage rates shall continue to be regulated.
(C) The Board shall have the following specific However, all freight rates, charges and passage
powers and duties: rates shall be monitored by the CAB.
(1) In accordance with the provisions of
Chapter IV of this Act, to issue, deny, amend,
revise, alter, modify, cancel, suspend or revoke,
in whole or in part, upon petition or complaint,
or upon its own initiative, any temporary
operating permit or Certificate of Public
Convenience and Necessity: Provided, however,
That in the case of foreign air carriers, the
permit shall be issued with the approval of the
President of the Republic of the Philippines.

(2) To fix and determine reasonable individual,

joint or special rates, charges or fares which an
air carrier may demand, collect or receive for
any service in connection with air commerce.
The Board may adopt any original, amended, or
new individual, joint or special rates, charges or
fares proposed by an air carrier if the proposed
individual, joint, or special rates, charges or
fares are not unduly preferential or unduly
discriminatory or unreasonable. The burden of
proof to show that the proposed individual,
joint or special rates, charges or fares are just
are reasonable shall be upon the air carrier
proposing the same.

xxx
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Regulation of authorized routes – CA 146: Regulation of authorized routes – EO 292 Book

Public Service Act – Sec 13.b IV Title XV Chapter 5 Sec 19

Section 13. (b) The term "public service" Sec. 19. Powers and Functions of the Land
includes every person that now or hereafter Transportation Franchising and Regulatory
may own, operate, manage, or control in the Board. The Board shall:
Philippines, for hire or compensation, with
general or limited clientele, whether (1) Prescribe and regulate routes,
permanent, occasional or accidental, and done economically viable capacities, and zones or
areas of operation of public land transportation
for general business purposes, any common
carrier, railroad, street railway, traction railway, services provided by motorized vehicles in
sub-way motor vehicle, either for freight or accordance with the public land transportation
development plans and programs approved by
passenger, or both with or without fixed route
and whether may be its classification, freight or the Department of Transportation and
carrier service of any class, express service, Communications;
steamboat or steamship line, pontines, ferries, (2) Issue, amend, revise, suspend or cancel
and water craft, engaged in the transportation Certificates of Public Convenience or permits
of passengers or freight or both, shipyard, authorizing the operation of public land
marine railways, marine repair shop, transportation services provided by motorized
[warehouse] wharf or dock, ice plant, ice- vehicles, and prescribe the appropriate terms
refrigeration plant, canal, irrigation system, gas, and conditions therefor;
electric light, heat and power water supply and
power, petroleum, sewerage system, wire or (3) Determine, prescribe, approve and
wireless communications system, wire or periodically review and adjust reasonable fares,
wireless broadcasting stations and other similar rates and other related charges, relative to the
public services: Provided, however, That a operation of public land transportation services
person engaged in agriculture, not otherwise a provided by motorized vehicles;
public service, who owns a motor vehicle and
xxx
uses it personally and/or enters into a special
contract whereby said motor vehicle is offered
for hire or compensation to a third party or
third parties engaged in agriculture, not itself or
themselves a public service, for operation by
the latter for a limited time and for a specific
purpose directly connected with the cultivation
of his or their farm, the transportation,
processing, and marketing of agricultural
products of such third party or third parties
shall not be considered as operating a public
service for the purposes of this Act.
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Regulation of authorized routes – EO 125-A Regulation of authorized routes – RA 776

Sec. 3. Section 14 of said Executive Order is
hereby renumbered as Section 12 and amended
to read as follows:
"Sec. 12. Maritime Industry Authority. The
Maritime Industry Authority is hereby retained
and shall have the following functions:
(a) Develop and formulate plans, policies,
programs, projects, standards, specifications
and guidelines geared toward the promotion
and development of the maritime industry, the
growth and effective regulation of shipping
enterprises, and for the national security
objectives of the country;
Sec. 13. Conduct of proceedings. The Board
shall conduct its proceedings in such manner as
will be conductive to the proper dispatch of
business and to the ends of justice. All hearings
and investigations before the Civil Aeronautics
Board shall be governed, by the rules of
procedure adopted by the Board, and in the
conduct thereof the Board shall be not be
bound by the technical rules of evidence.

(b) Establish, prescribe and regulate routes,

zones and/or areas of operation of particular
operators of public water services;

(c) Issue Certificates of Public Convenience for

the operation of domestic and overseas water
carriers;

(d) Register vessels as well as issue certificates,

licenses or documents necessary or incident
thereto;

(e) Undertake the safety regulatory functions

pertaining to vessel construction and operation
including the determination of manning levels
and issuance of certificates of competency to
seamen;

xxx
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EO 185
1. The entry of new operators into the domestic
water transport industry shall be liberalized to
enhance the level of competition and bring
about reasonable rates and improved quality of
services.
1.1. Opening-up of all Routes
Public interest and public convenience call for
the levelling of the playing field for all existing
and new operators in the domestic water
transport industry. Competition, provided it is
not ruinous, should be the norm to open-up the
industry to new investments and to stimulate
further economic activity.
1.1.1. All routes/links shall have a minimum of
two (2) operators. Routes/links presently
serviced by only one (1) operator, or
monopolized or cartelized as determined by
MARINA, shall be open for entry to additional
operators.
1.1.2. All routes/links which have been serviced
by any operator for an aggregate period of at
least five (5) years shall be open for entry to
additional operators without limit.
1.2. Encouraging Entry Into Developmental
Routes
The entry of operators in developmental routes
as determined by MARINA shall be encouraged.
An operator who pioneers in the provision of a
certain technological level/type of shipping
service in a developmental route shall be
authorized to charge market-accepted freight
and passage rates differing from the authorized
fork-tariff, if availed of; Provided, that the
operator shall apply with MARINA for the
adjustment in or adoption of such rates, the
approval of which shall be accordingly granted;
and Provided, further, that after five (5) years of
such operation, the continued authorization of
such rates, or adjustments thereof, shall be
dependent on an evaluation undertaken by
MARINA.
1.3. Deregulating Entry of Newly-Acquired
Vessels Into Routes Already Served By
Franchised Operators
1.3.1. An existing or new operator who acquires
a vessel through importation, bareboat charter
with option to purchase, lease-purchase, or
local construction, shall be granted a Certificate
of Public Convenience (CPC)/Provisional
Authority (PA) and allowed to operate such
vessel in any route, even if already being served
by existing franchised operators for less than
five (5) years, including developmental routes;
Provided, that the prescribed application for
CPC has been filed, and the basic requisites
prior to issuance thereof have been complied
with; Provided, further, that upon filing of the
application for CPC, the presumption of public
need shall be accorded in favor of the applicant,
especially but not necessarily when any of the
following conditions shall be shown to obtain:
1.3.1.1. The proposed operation shall introduce
innovative, technologically-advanced, or
pioneering shipping services in the route
applied for, such as, but not limited to, the
deployment of fast ferries, cruise vessels,
container vessels and RoRo vessels, or the
employment of modern and efficient on-board
cargo handling equipment as an integral part of
the vessel's operation;
1.3.1.2. The proposed operation shall introduce
improvements in the quality of service being
provided in the applied route/link;
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1.3.1.3. The vessel proposed to be deployed
shall serve as an improvement over the existing
vessels operating therein, either in terms of the
vessel's age, size, capacity, hull material and
other vessel technical features;
1.3.1.4. The proposed operation shall foster
cost-effective/competitive shipping service in
the route proposed to be served;
1.3.1.5. The proposed operation shall service
priority tourist links as identified by the
Department of Tourism in its Tourism Master
Plan;
1.3.1.6. The route/link applied for warrants
additional operators/services, as determined by
MARINA or by pertinent local government units,
resulting in public invitations for additional
services therein.
This condition covers cases where there is a
duly verified and legitimate public clamor for
additional shipping services and it has been
determined that existing authorized operators
in the route/link have not been sensitive to an
increase in demand by offering to increase
capacity only after another operator has offered
to provide additional services therein; and
1.3.1.7. Where existing authorized operators
have abandoned their operations in a given
route.
Any oppositor to the application shall bear the
burden of proving that there is no need for the
proposed service.
Provided, finally, that the vessel, upon issuance
of the CPC, shall continuously serve its
franchised route for at least one (1) year.
1.4. Vessel Rerouting Or Amendment Of
Authorized Route And Change In Sailing
Schedules And Frequency
Any change or amendment to the authorized
routing pattern of a vessel can be undertaken
by an existing authorized operator thru the
following: (1) omission or deletion of port(s); (2)
addition of other port(s); (3) omission and
subsequent addition of port(s); (4) changing the
sequence of port calls; (5) retention of
authorized routing pattern but with addition of
one or more ports. Vacated port(s) or
link(s)/route(s) as a result of the above shall be
looked into by MARINA insofar as adequacy or
sufficiency of the remaining existing shipping
services is concerned:
1.4.1. Approval shall be granted to applications
for any of the above forms of change or
amendment of authorized routing pattern by
existing franchised liner vessels, Provided, that:
1.4.1.1. No conflict in sailing schedules with
other affected operators in the applied
route/link shall result therefrom, otherwise, the
MARINA shall prescribe, motu propio, sailing
schedules that will best serve public interest
and convenience;
1.4.1.2. No route or link shall be left unserviced
by the rerouting or route amendment, unless a
substitute vessel from the applicant will be
deployed therein, or vessel(s) from other
existing authorized operators are left serving
the route/link; and
1.4.1.3. Shipping service in the previous
route/link has been continuously rendered by
the vessel for at least one (1) year from
issuance of CPC.
1.4.2. If the rerouting or route amendment of a
vessel is caused by the deployment of a newly
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acquired vessel (either through importation, Regulation of equipment used – CA 146

bareboat charter with option to purchase, lease
purchase or local construction) into the
authorized route of an operator, the policy of
liberalized entry into any route under Section
1.3 above shall be applied.
1.4.3. If no newly-acquired vessel is involved
and an application is filed for the rerouting or
route amendment of a vessel, where an entirely
new route or link will be served, a new
application for CPC shall be filed and entry
therein will depend on whether any of the
conditions or circumstances enumerated in
Section 1.3 above has been proven to obtain.
Priority shall, however, be given to newly-
acquired vessels brought into the fleet, subject
to Section 1.3, in the grant of CPC to a given
route.
Section 16. Proceedings of the Commission,
upon notice and hearing. - The Commission
shall have power, upon proper notice and
hearing in accordance with the rules and
provisions of this Act, subject to the limitations
and exceptions mentioned and saving
provisions to the contrary :
xxx
(d) To fix just and reasonable standards,
classifications, regulations, practices,
measurement, or service to be furnished,
imposed, observed, and followed thereafter by
any public service.
xxx

1.4.4. In cases where only a temporary

authority has so far been issued to a vessel,
pending resolution of the basic application for
CPC, an application for amendment of route or
rerouting may be filed and considered by the
MARINA, but the amended authority to be
issued as a result thereof, shall be subject to the
one (1) year maximum period per issuance to
be cumulatively reckoned from the first PA
issued in the original application.
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Regulation of equipment used – RA 9295
SEC. 9. Safety Standards. - All vessels operate by
domestic ship operators shall at all times be in
seaworthy condition properly equipped with
adequate life-saving, communication, safety
and other equipment operated and maintained
in accordance with the standards set by
MARINA, and manned by duly licensed and
competent vessel crew.
The MARINA shall have the power to inspect
vessels and all equipment on board to ensure
compliance with safety standards.
SEC. 10. Jurisdiction; Power; and Duties of
MARINA. - The MARINA shall have the power
and authority to:
(1) Register vessels;
(2) Issue certificates of public convenience or
any extensions or amendments thereto,
authorizing the operation of all kinds. Classes
and types of vessels in domestic shipping:
Provided, That no such certificate shall be valid
for a period of more than twenty-five (25)
years;
(3) Modify, suspend or revoke at any time upon
notice and hearing, any certificate, license or
accreditation it may have issued to any
domestic ship operator;
(4) Establish and prescribe routes, zones or
areas of operations of domestic ship operators;
(5) Require any domestic ship operator to
provide shipping services to any coastal area,
island or region in the country where such
services are necessary for the development of
the area, to meet emergency sealift
requirements, or when public interest so
requires;
(6) Set safety standards for vessels in
accordance with applicable conventions and
regulations;
(7) Require all domestic ship operators to
comply with operational and safety standards
for vessels set by applicable conventions and
regulations, maintain its vessels in safe and
serviceable conditions, meet the standards of
safety of life at sea and safe manning
requirements, and furnish safe, adequate,
efficient, reliable and proper service at all times;
(8) Inspect all vessels to ensure and enforce
compliance with safety standards and other
regulations;
(9) Ensure that all domestic ship operators
shall have the financial capacity to provide and
sustain safe, reliable, efficient and economic
passenger or cargo service, or both;
(10) Determine the impact which any new
service shall have to the locality it will serve;
(11) Adopt and enforce such rules and
regulations which will ensure compliance by
every domestic ship operator with required
safety standards and other rules and
regulations on vessel safety;
(12) Adopt such rules and regulations which
ensure the reasonable stability of passengers
and freight rates and, if necessary, to intervene
in order to protect public interest;
(13) Hear and adjudicate any complaint made in
writing involving any violation of this law or the
rules and regulations of the Authority;
(14) Impose such fines and penalties on,
including the revocations of licenses of any
domestic ship operator who shall fail to
maintain its vessels in safe and serviceable
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condition, or who shall violate or fail to comply
with safety regulations;
(15) Investigate any complaint made in writing
against any domestic ship operator, or any
shipper, or any group of shippers regarding any
matter involving violations of the provisions of
this Act;
(16) Upon notice and hearing, impose such
fines, suspend or revoke certificates of public
convenience or other license issued, or
otherwise penalize any ship operator, shipper
or group of shippers found violating the
provisions of this Act; and
(17) Issue such rules and regulations necessary
to implement the provisions of this Act:
Provided, That such rules and regulations
cannot change or in any way amend or be
contrary to the intent and purposes of this Act.
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, and
jurisdiction and control over, air carriers …
xxx
(C) The Board shall have the following specific
powers and duties:
(1) In accordance with the provisions of
Chapter IV of this Act, to issue, deny, amend,
revise, alter, modify, cancel, suspend or revoke,
in whole or in part, upon petition or complaint,
or upon its own initiative, any temporary
operating permit or Certificate of Public
Convenience and Necessity: Provided, however,
That in the case of foreign air carriers, the
permit shall be issued with the approval of the
President of the Republic of the Philippines.
(2) To fix and determine reasonable individual,
joint or special rates, charges or fares which an
air carrier may demand, collect or receive for
any service in connection with air commerce.
The Board may adopt any original, amended, or
new individual, joint or special rates, charges or
fares proposed by an air carrier if the proposed
individual, joint, or special rates, charges or
fares are not unduly preferential or unduly
discriminatory or unreasonable. The burden of
proof to show that the proposed individual,
joint or special rates, charges or fares are just
are reasonable shall be upon the air carrier
proposing the same.
In fixing rates, charges, or fares under the
provisions of this Act, the Board shall take into
consideration, among other factors:
yurei.blackthorn@gmail.com
(a) The effect of such rates upon the movement
of traffic;
(b) The need in the public interest of adequate
and efficient transportation of persons and
property by air carriers at the lowest cost
consistent with the furnishing of such service;
(c ) Such standards respecting the character
and quality of service to be rendered by air
carriers as may be prescribed by or pursuant to
law;
(d) The inherent advantages or transportation
by aircraft; and
(e) The need of each air carrier for revenue
sufficient to enable such air carrier, under
honest, economical, and efficient management,
to provide adequate and efficient air carrier
service.
(3) To authorize charters whether domestic or
international and special air services or flight
heretofore exercised by the Department of
Commerce and Industry under Commonwealth
Act Numbered Ninety-seven under such terms
and conditions as in its judgment the public
interest requires.
(4) To approve or disapprove increase of
capital, sale of equipment of an air carrier
engaged in air commerce, consolidation,
merger, purchase, lease, operating contract or
acquisition and control between domestic air
carriers; or between domestic air carriers and
foreign air carriers; or between domestic air
carriers and any person engaged in any phase of
aeronautics.
(5) To inquire into the management of the
business of any air carrier and, to the extent
reasonably necessary for such inquiry, to obtain
from such carrier, and from any person
controlling, or controlled by, or under common
control with, such air carrier, full and complete
reports and other information. Such reports
shall be under oath whenever the Board so
requires.
(6) To require annual, monthly, periodical, and
special reports from any air carrier; to prescribe
the manner and form in which such reports
shall be made; and to require from any air
carrier specific answers to all questions upon
which the Board may deem information to be
necessary. Such reports shall be under oath
whenever the Board so requires. The Board may
also require any air carrier to file with it any
contract, agreement, understanding or
arrangement, or a true copy thereof between
such air carrier and any other carrier or person,
in relation to any traffic affected by the
provisions of this Act.
(7) To prescribe the forms of any and all
accounts, records, and memoranda of the
movement of traffic, as well as of the receipt
and expenditures of money, and the length of
time such accounts, records and memoranda
shall be preserved: Provided, That any air
carrier may keep additional accounts, records
and memoranda if they do not impair the
integrity of the accounts, records, or
memoranda prescribed or approved by the
Board and do not constitute an undue financial
burden on such air carrier.
(8) To require each officer and director of any
air carrier to transmit a report describing the
shares of stock or other interest held by such air
carrier with any persons engaged in any phase
of aeronautics, and the holding of the stock in,
and control of, other persons engaged in any
phase of aeronautics.
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Regulation of period of franchise – RA 776
Sec. 11. Nature, terms and conditions. A
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 carrier shall abandon any route, or part
thereof for which a permit has been issued,
unless upon findings by the Civil Aeronautics
Board that such an abandonment is
uneconomical and is in the public interest.

Any permit may be altered, amended, modified,

suspended, cancelled or revoked by the Board
in whole or in part, upon complaint or petition
or upon the Board's initiative as hereinafter
provided, whenever the Board finds such action
to be in the public interest.

There shall be attached to the exercise of the

privileges granted by the permit, or amendment
thereto, such reasonable terms, conditions or
limitations as, in the judgment of the Board, the
public interest may require.

No permit shall confer any proprietary,

property, or exclusive right in the use of any air
space, civil airway, landing area or government
air-navigation facility.

The permit shall, among others, specify the

terminal and intermediate points, if any,
between which the air carrier is authorized to
operate; the service to be rendered; the time of
arrival and departure at each point, and the
frequency of flights: Provided, That no change
in routes, rates, schedules, or frequency nor
supplemental or additional flights to those
covered by an Air Commerce Permit or
franchise shall be effected without prior
approval of the Civil Aeronautics Board. Insofar
as the operation is to take place without the
Philippines, the permit shall designate the
terminal and intermediate points only insofar as
the Board shall deem practicable, and
otherwise shall designate only the general route
or routes to be followed.
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Government’s right of requisition – RA 7471 Government’s right of requisition – RA 9295

Sec. 9. Requisition of Vessels. — The President
of the Philippines may, in times of war and
other national emergency, requisition
absolutely or temporarily, for any naval or
military purpose, any and all vessels of the
Philippine registry. The Government shall pay
the owner or operator of the vessel, based on
normal conditions at the time of requisition;
(a) The fair market value, if the vessel is taken
absolutely, or
(b) The fair charter value, if the vessel is taken
temporarily.
SEC. 24. Temporary Take-Over of Operations. -
In times of national emergency, when the public
interest so requires, the State may during
emergencies and under reasonable terms
prescribed by it, temporary take over or direct
the operations or any vessel engaged in
domestic trade and commerce, or prescribe its
rates or routes of operation. Immediately upon
the cessation of the emergency, the State shall
immediately reinstate to the domestic ship
operation of its vessel under the same terms
and conditions prior to the occurrence of the
emergency.

In case of disagreement, such fair value shall be

determined by an arbitration committee
composed of:

(a) One (1) member to be appointed by the

MARINA; chan robles virtual law library

(b) One (1) member to be appointed by the

owner or operator of the vessel; and chan
robles virtual law library

(c) One (1) member to be appointed by the two

(2) members so appointed.

The decision of the arbitration committee shall

be final and binding on both parties.
yurei.blackthorn@gmail.com
Revocation of license – CA 146
Section 21. Every public service violating or
failing to comply with the terms and conditions
of any certificate or any orders, decisions or
regulations of the Commission shall be subject
to a fine of not exceeding two hundred pesos
per day for every day during which such default
or violation continues; and the Commission is
hereby authorized and 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
Commission, and failure to pay the fine in any
case within the same specified in the order or
decision of the Commission shall be deemed
good and sufficient reason for the suspension of
the certificate of said public service until
payment shall be made. Payment may also be
enforced by appropriate action brought in a
court of competent jurisdiction. The remedy
provided in this section shall not be a bar to, or
affect any other remedy provided in this Act but
shall be cumulative and additional to such
remedy or remedies.
Revocation of license – RA 776
Sec. 22. Modification, suspension or
revocation. The Board, upon petition or
complaint or upon its own initiative, may, by
order entered after notice and opportunity for
hearing, alter, amend, modify or suspend any
permit, in whole or in part, if public
convenience and necessity so require; or may
revoke any permit, in whole or in part, for
intentional failure to comply with any provision
of this Act or any order, rule or regulation
issued thereunder, or any term, condition or
limitation of such permit: Provided, That the
Board, for good cause, may, by order without
notice and hearing suspend, for a period not to
exceed thirty days, any permit or the exercise of
any privilege or authority issued or granted
under this Act whenever such step shall, in the
judgment of the Board, be necessary to avoid
serious or irreparable damage or inconvenience
to the public. Any interested person may file
with the Board a protest or memorandum in
support of or in opposition to the alteration,
amendment, modification, suspension, or
revocation of any permit.
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Protection of operators from foreign
competition – Tariff and Customs Code
Sec. 902. Vessels Eligible for Coastwise Trade.
— The right to engage in the Philippine
coastwise trade is limited to vessels carrying a
certificate of Philippine registry.
Sec. 905. Transportation of Passengers and
Articles Between Philippine Ports. — Passengers
shall not be received at one Philippine port for
any other such port by a vessel not licensed for
the coastwise trade, except upon special
permission previously granted by the Collector;
and subject to the same qualification, articles
embarked at a domestic port shall not be
transported to any other port in the Philippines,
either directly or by way of a foreign port, or for
any part of the voyage, in any other vessel than
one licensed for the coastwise trade.
Philippines; and passengers departing from the
Philippines or articles intended for export may
be carried in a foreign vessel through a
Philippine port.
Upon such reasonable condition as he may
impose, the Commissioner may clear foreign
vessels for any port and authorize the
conveyance therein of either articles or
passengers brought from abroad upon such
vessels; and he may likewise, upon such
conditions as he may impose, allow a foreign
vessel to take cargo and passengers at any port
and convey the same upon such vessel to a
foreign port.

Sec. 1001. Ports Open to Vessels Engaged in

Foreign Trade — Duty of Vessel to Make Entry.
— Vessels engaged in the foreign trade shall
touch at ports of entry only, except as
otherwise specially allowed; and every such
vessel arriving within a customs collection
district of the Philippines from a foreign port
shall make entry at the port of entry for such
district and shall be subject to the authority of
the Collector of the port while within his
jurisdiction.

The master of any war vessel employed by any

foreign government shall not be required to
report and enter on arrival in the Philippines,
unless engaged in the transportation of articles
in the way of trade.

Sec. 1009. Clearance of Foreign Vessels To and

From Coastwise Ports. — Passengers or articles
arriving from abroad upon a foreign vessel may
be carried by the same vessel through any port
of entry to the port of destination in the
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Protection of operators from foreign
competition – RA 9295
SEC. 6. Foreign Vessels Engaged in Trade and
Commerce in the Philippines Territorial
Waters. - No foreign vessel shall be allowed to
transport passengers or cargo between ports or
place within the Philippine territorial waters,
except upon the grant Special Permit by the
MARINA when no domestic vessels is available
or suitable to provide the needed shipping
service and public interest warrants the same.
Quasi-judicial functions of regulatory agencies
– CA 146
Section 16. Proceedings of the Commission,
upon notice and hearing. - The Commission
shall have power, upon proper notice and
hearing in accordance with the rules and
provisions of this Act, subject to the limitations
and exceptions mentioned and saving
provisions to the contrary :
(a) To issue certificates which shall be known as
certificates of public convenience, authorizing
the operation of public service within the
Philippines whenever the Commission finds that
the operation of the public service proposed
and the authorization to do business will
promote the public interest in a proper and
suitable manner. Provided, That thereafter,
certificates of public convenience and
certificates of public convenience and necessity
will be granted only to citizens of the
Philippines or of the United States or to
corporations, co-partnerships, associations or
joint-stock companies constituted and
organized under the laws of the Philippines;
Provided, That sixty per centum of the stock or
paid-up capital of any such corporations, co-
partnership, association or joint-stock company
must belong entirely to citizens of the
Philippines or of the United States: Provided,
further, That no such certificates shall be issued
for a period of more than fifty years.
(b) To approve, subject to constitutional
limitations any franchise or privilege granted
under the provisions of Act No. Six Hundred and
Sixty-seven, as amended by Act No. One
Thousand and twenty-two, by any political
subdivision of the Philippines when, in the
judgment of the Commission, such franchise or
privilege will properly conserve the public
interests, and the Commission shall in so
yurei.blackthorn@gmail.com
approving impose such conditions as to
construction, equipment, maintenance, service,
or operation as the public interests and
convenience may reasonably require, and to
issue certificates of public convenience and
necessity when such is required or provided by
any law or franchise.
(c) To fix and determine individual or joint rates,
tolls, charges, classifications, or schedules
thereof, as well as commutation, mileage,
kilometrage, and other special rates which shall
be imposed observed and followed thereafter
by any public service: Provided, That the
Commission may, in its discretion, approve
rates proposed by public services provisionally
and without necessity of any hearing; but it
shall call a hearing thereon within thirty days,
thereafter, upon publication and notice to the
concerns operating in the territory affected:
Provided, further, That in case the public service
equipment of an operator is used principally or
secondarily for the promotion of a private
business, the net profits of said private business
shall be considered in relation with the public
service of such operator for the purpose of
fixing the rates.
(d) To fix just and reasonable standards,
classifications, regulations, practices,
measurement, or service to be furnished,
imposed, observed, and followed thereafter by
any public service.
(e) To ascertain and fix adequate and
serviceable standards for the measurement of
quantity, quality, pressure, initial voltage, or
other condition pertaining to the supply of the
product or service rendered by any public
service, and to prescribe reasonable regulations
for the examination and test of such product or
service and for the measurement thereof.
(f) To establish reasonable rules, regulations,
instructions, specifications, and standards, to
secure the accuracy of all meters and
appliances for measurements.
(g) To compel any public service to furnish safe,
adequate, and proper service as regards the
manner of furnishing the same as well as the
maintenance of the necessary material and
equipment.
(h) To require any public service to establish,
construct, maintain, and operate any
reasonable extension of its existing facilities,
where in the judgment of said Commission,
such extension is reasonable and practicable
and will furnish sufficient business to justify the
construction and maintenance of the same and
when the financial condition of the said public
service reasonably warrants the original
expenditure required in making and operating
such extension.
(i) To direct any railroad, street railway or
traction company to establish and maintain at
any junction or point of connection or
intersection with any other line of said road or
track, or with any other line of any other
railroad, street railway or traction to promote,
such just and reasonable connection as shall be
necessary to promote the convenience of
shippers of property, or of passengers, and in
like manner direct any railroad, street railway,
or traction company engaged in carrying
merchandise, to construct, maintain and
operate, upon reasonable terms, a switch
connection with any private sidetrack which
may be constructed by any shipper to connect
with the railroad, street railway or traction
company line where, in the judgment of the
Commission, such connection is reasonable and
practicable and can be out in with safety and
yurei.blackthorn@gmail.com
will furnish sufficient business to justify the
construction and maintenance of the same.
(j) To authorize, in its discretion, any railroad,
street railway or traction company to lay its
tracks across the tracks of any other railroad,
street railway or traction company or across any
public highway.
(k) To direct any railroad or street railway
company to install such safety devices or about
such other reasonable measures as may in the
judgment of the Commission be necessary for
the protection of the public are passing grade
crossing of (1) public highways and railroads, (2)
public highways and streets railway, or (3)
railways and street railways.
(l) To fix and determine proper and adequate
rates of depreciation of the property of any
public service which will be observed in a
proper and adequate depreciation account to
be carried for the protection of stockholders,
bondholders or creditors in accordance with
such rules, regulations, and form of account as
the Commission may prescribe. Said rates shall
be sufficient to provide the amounts required
over and above the expense of maintenance to
keep such property in a state of efficiency
corresponding to the progress of the industry.
Each public service shall conform its
depreciation accounts to the rates so
determined and fixed, and shall set aside the
moneys so provided for out of its earnings and
carry the same in a depreciation fund. The
income from investments of money in such
fund shall likewise be carried in such fund. This
fund shall not be expended otherwise than for
depreciation, improvements, new construction,
extensions or conditions to the properly of such
public service.
(m) To amend, modify or revoke at any time
certificate issued under the provisions of this
Act, whenever the facts and circumstances on
the strength of which said certificate was issued
have been misrepresented or materially
changed.
(n) To suspend or revoke any certificate issued
under the provisions of this Act whenever the
holder thereof has violated or willfully and
contumaciously refused to comply with any
order rule or regulation of the Commission or
any provision of this Act: Provided, That the
Commission, for good cause, may prior to the
hearing suspend for a period not to exceed
thirty days any certificate or the exercise of any
right or authority issued or granted under this
Act by order of the Commission, whenever such
step shall in the judgment of the Commission be
necessary to avoid serious and irreparable
damage or inconvenience to the public or to
private interests.
(o) To fix, determine, and regulate, as the
convenience of the state may require, a special
type for auto-busses, trucks, and motor trucks
to be hereafter constructed, purchased, and
operated by operators after the approval of this
Act; to fix and determine a special registration
fee for auto-buses, trucks, and motor trucks so
constructed, purchased and operated:
Provided, That said fees shall be smaller than
more those charged for auto-busses, trucks,
and motor trucks of types not made regulation
under the subsection.
Section 17. Proceedings of Commission without
previous hearing. - The Commission shall have
power without previous hearing, subject to
established limitations and exception and
saving provisions to the contrary:
yurei.blackthorn@gmail.com
(a) To investigate, upon its own initiative, or
upon complaint in writing, any matter
concerning any public service as regards
matters under its jurisdiction; to require any
public service to furnish safe, adequate, and
proper service as the public interest may
require and warrant; to enforce compliance
with any standard, rule, regulation, order or
other requirement of this Act or of the
Commission, and to prohibit or prevent any
public service as herein defined from operating
without having first secured a certificate of
public convenience or public necessity and
convenience, as the case may be and require
existing public services to pay the fees provided
for in this Act for the issuance of the proper
certificate of public convenience or certificate
of public necessity and convenience, as the case
may be, under the penalty, in the discretion by
the Commission, of the revocation and
cancellation of any acquired rights.
(b) To require any public service to pay the
actual expenses incurred by the Commission in
any investigation if it shall be found in the same
that any rate, tool, charge, schedule, regulation,
practice, act or service thereof is in violation of
any provision of this Act or any certificate,
order, rule, regulation or requirement issued or
established by the Commission. The
Commission may also assess against any public
service costs not to exceed twenty-five pesos
with reference to such investigation.
(c) From time to time appraise and value the
property of any public service, whenever in the
judgment of the Commission it shall be
necessary so to do, for the purpose of carrying
out any of the provisions of this Act, and in
making such valuation the Commission may
have access to and use any books, documents,
or records in the possession of any department,
bureau, office, or board of the government of
the Philippines or any political subdivision
thereof.
(d) To provide, on motion by or at the request
of any consumer or user of a public service, for
the examination and test of any appliance used
for the measuring of any product or service of a
public service, and for that purpose, by its
agents, experts, or examiners to enter upon any
premises where said appliances may be, and
other premises of the public service, for the
purpose of setting up and using on said
premises any apparatus necessary therefor. and
to fix the fees to be paid by any consumer or
user who may apply to the Commission for such
examination or test to be made, and if the
appliance be found defective or incorrect to the
disadvantage of the consumer or user to
require the fees paid to be refunded to the
consumer or user by the public service
concerned.
(e) To permit any street railway or traction
company to change its existing gauge to
standard steam railroad gauge, upon such
terms and conditions as the Commission shall
prescribe.
(f) To grant to any public service special permits
to make extra or special trips within the
territory covered by its certificates of public
convenience, and to make special excursion
trips outside of its own territory if the public
interest or special circumstances required it:
Provided, however, that in case a public service
cannot render such extra service on its own line
or in its own territory, a special permit for such
extra service may be granted to any other
public service.
(g) To require any public service to keep its
books, records, and accounts so as to afford an
yurei.blackthorn@gmail.com
intelligent understanding of the conduct of its
business and to that end to require every such
public service of the same class to adopt a
uniform system of accounting. Such system
conform to any system approved and confirmed
by the Auditor General.
(h) To require any public service to furnish
annual reports of finances and operations. Such
reports shall set forth in detail the capital stock
issued, the amounts of said capital stock paid
up and the form of payment thereof; the
dividends paid, the surplus, if any and the
number of stockholders, the consolidated and
pending obligations and the interest paid
thereon; the cost and value of the property of
the operator; concessions or franchises and
equipment; the number of employees and
salaries paid to each class; the accidents to
passengers, employees, and other person, and
the causes thereof; the annual expenditures on
improvements; the manner of their investment
and nature of such improvements; the receipts
and profits in each of the branches of the
business and of whatever source; the operating
and other expenses; the balance of profits and
losses; and a complete statement of the annual
financial operations of the operator, including
an annual balance sheet. Such reports shall also
contain any information which the Commission
may require concerning freight and passenger
rates, or agreements, compromises or contracts
affecting the same. Said reports shall cover a
period of twelve months, ending on December
thirty-first of each year, and shall be sworn to
by the officer or functionary of the public
service authorized therefor. The Commission
shall also have power to require from time to
time special reports containing such
information as above provided for or on other
matters as the Commission may deem
necessary or advisable.
(i) To require every public service to file with
the Commission a statement in writing, verified
by the oaths of the owner or the president and
the secretary thereof, if a corporation, setting
forth the name, title of office or portion, and
post-office address, and the authority, power
and duties of every officer, member of the
board of directors, trustees executive
committee, superintendent, chief or head of
construction and operation thereof, in such
form as to disclose the source and origin of
each administrative act, rule, decision, order or
other action of the operator of such public
service; and, within ten days after any change is
made in the title of, or authority, powers or
duties appertaining to any such office or
position, or the person holding the same, filed
with the Commission a like statement, verified
in like manner, setting forth such change.
(j) To require any public service to comply with
the laws of the Philippines and with any
provincial resolution or municipal ordinance
relating thereto and to conform to the duties
imposed upon it thereby or by the provisions of
its own character, whether obtained under any
general or special law of the Philippines.
(k) To investigate any or all accidents that may
occur on the property of any public service or
directly or indirectly arising from or connected
with its maintenance or operation in the
Philippines; to require any public service to give
the Commission immediate and effective notice
of all any such accidents, and to make such
order or recommendation with respect thereto
as the public interest may warrant or require.
(l) To require every public service s herein
defined to file within complete schedules of
every classification employed and of every
individual or joint rate, toll fare or charge made,
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charged or exacted by it for any product
supplied or service rendered within the
Philippines and, in the case of public carriers, to
file with it a statement showing the itineraries
or routes served as specified in such
requirement.
Quasi-judicial functions of regulatory agencies
– LTFRB – EO 292
Sec. 20. Decisions of the Board; Appeals
therefrom or Review Thereof. The Board, in the
exercise of its powers and functions, shall sit
and render its decision en banc. Every such
decision, order, or resolution of the Board must
bear the concurrence and signature of at least
two (2) members thereof.
The decision, order or resolution of the Board
shall be appealable to the Secretary within
thirty (30) days from receipt of the decision.
However, the Secretary may motu propio
review and decision or action of the Board
before the same becomes final.
yurei.blackthorn@gmail.com
Quasi-judicial functions of regulatory agencies
– Marina – PD 474
Section 12. Specific Powers and Functions of
the Administrator. In addition to his general
powers and functions, the Administrator shall;
a. Issue Certificate of Philippine Registry for all
vessels being used in Philippine waters,
including fishing vessels covered by Presidential
Decree No. 43 except transient civilian vessels
of foreign registry, vessels owned and/or
operated by the Armed Forces of the
Philippines or by foreign governments for
military purposes, and bancas, sailboats and
other watercraft which are not motorized, of
less than three gross tons;
b. Provide a system of assisting various officers,
professionals, technicians, skilled workers and
seamen to be gainfully employed in shipping
enterprises, priority being given to domestic
needs;
c. In collaboration and coordination with the
Department of Labor, to look into, and promote
improvements in the working conditions and
terms of employment of the officers and crew
of vessels of Philippine registry, and of such
officers and crew members who are Philippine
citizens and employed by foreign flag vessels, as
well as of personnel of other shipping
enterprises, and to assist in the settlement of
disputes between the shipowners and ship
operators and such officers and crew members
and between the owner or manager of other
shipping enterprises and their personnel;
d. To require any public water transport utility
or Philippine flag vessels to provide shipping
services to any coastal areas in the country
where such services are necessary for the
development of the area, to meet emergency
sealift requirements, or when public interest so
requires;
e. Investigate by itself or with the assistance of
other appropriate government agencies or
officials, or experts from the private sector, any
matter within its jurisdiction, except marine
casualties or accidents which shall be
undertaken by the Philippine Coast Guard;
f. Impose, fix, collect and receive in accordance
with the schedules approved by the Board, from
any shipping enterprise or other persons
concerned, such fees and other charges for the
payment of its services;
g. Inspect, at least annually, the facilities of port
and cargo operators and recommend measures
for adherence to prescribed standards of safety,
quality and operations;
h. Approve the sale, lease or transfer of
management of vessels owned by Philippine
Nationals to foreign owned or controlled
enterprises;
i. Prescribe and enforce rules and regulations
for the prevention of marine pollution in bays,
harbors and other navigable waters of the
Philippines, in coordination with the
government authorities concerned;
j. Establish and maintain, in coordination with
the appropriate government offices and
agencies, a system of regularly and promptly
producing, collating, analyzing and
disseminating traffic flows, port operations,
marine insurance services and other
information on maritime matters;
k. Recommend such measures as may be
necessary for the regulation of the importation
into and exportation from the Philippines of
vessels, their equipment and spare parts;
yurei.blackthorn@gmail.com
l. Implement the rules and regulations issued by
the Board of Transportation; lawphi1.net
m. Compile and codify all maritime laws, orders,
rules and regulations, decisions in leasing cases
of courts and the Authority's procedures and
other requirements relative to shipping and
other shipping enterprises, make them available
to the public, and, whenever practicable to
publish such materials;
n. Delegate his powers in writing to either of
the Deputy Administrators or any other ranking
officials of the Authority; Provided, That he
informs the Board of such delegation promptly;
and
o. Perform such other duties as the Board may
assign, and such acts as may be necessary and
proper to implement this Decree.
Quasi-judicial functions of regulatory agencies
– Marina – RA 776
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, and
jurisdiction and control over, air carriers as well
as their property, property rights, equipment,
facilities, and franchise, in so far as may be
necessary for the purpose of carrying out the
provisions of this Act.
(B) The Board may perform such acts, conduct
such investigations, issue and amend such
orders, and make and amend such general or
special rules, and regulations, and procedures
as it shall deem necessary to carry out the
provisions of this Act.
(C) The Board shall have the following specific
powers and duties:
(1) In accordance with the provisions of
Chapter IV of this Act, to issue, deny, amend,
revise, alter, modify, cancel, suspend or revoke,
in whole or in part, upon petition or complaint,
or upon its own initiative, any temporary
operating permit or Certificate of Public
Convenience and Necessity: Provided, however,
That in the case of foreign air carriers, the
permit shall be issued with the approval of the
President of the Republic of the Philippines.
(2) To fix and determine reasonable individual,
joint or special rates, charges or fares which an
air carrier may demand, collect or receive for
any service in connection with air commerce.
The Board may adopt any original, amended, or
new individual, joint or special rates, charges or
fares proposed by an air carrier if the proposed
individual, joint, or special rates, charges or
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fares are not unduly preferential or unduly
discriminatory or unreasonable. The burden of
proof to show that the proposed individual,
joint or special rates, charges or fares are just
are reasonable shall be upon the air carrier
proposing the same.
In fixing rates, charges, or fares under the
provisions of this Act, the Board shall take into
consideration, among other factors:
(a) The effect of such rates upon the movement
of traffic;
(b) The need in the public interest of adequate
and efficient transportation of persons and
property by air carriers at the lowest cost
consistent with the furnishing of such service;
(c ) Such standards respecting the character
and quality of service to be rendered by air
carriers as may be prescribed by or pursuant to
law;
(d) The inherent advantages or transportation
by aircraft; and
(e) The need of each air carrier for revenue
sufficient to enable such air carrier, under
honest, economical, and efficient management,
to provide adequate and efficient air carrier
service.
(3) To authorize charters whether domestic or
international and special air services or flight
heretofore exercised by the Department of
Commerce and Industry under Commonwealth
Act Numbered Ninety-seven under such terms
and conditions as in its judgment the public
interest requires.
(4) To approve or disapprove increase of
capital, sale of equipment of an air carrier
engaged in air commerce, consolidation,
merger, purchase, lease, operating contract or
acquisition and control between domestic air
carriers; or between domestic air carriers and
foreign air carriers; or between domestic air
carriers and any person engaged in any phase of
aeronautics.
(5) To inquire into the management of the
business of any air carrier and, to the extent
reasonably necessary for such inquiry, to obtain
from such carrier, and from any person
controlling, or controlled by, or under common
control with, such air carrier, full and complete
reports and other information. Such reports
shall be under oath whenever the Board so
requires.
(6) To require annual, monthly, periodical, and
special reports from any air carrier; to prescribe
the manner and form in which such reports
shall be made; and to require from any air
carrier specific answers to all questions upon
which the Board may deem information to be
necessary. Such reports shall be under oath
whenever the Board so requires. The Board may
also require any air carrier to file with it any
contract, agreement, understanding or
arrangement, or a true copy thereof between
such air carrier and any other carrier or person,
in relation to any traffic affected by the
provisions of this Act.
(7) To prescribe the forms of any and all
accounts, records, and memoranda of the
movement of traffic, as well as of the receipt
and expenditures of money, and the length of
time such accounts, records and memoranda
shall be preserved: Provided, That any air
carrier may keep additional accounts, records
and memoranda if they do not impair the
integrity of the accounts, records, or
memoranda prescribed or approved by the
yurei.blackthorn@gmail.com
Board and do not constitute an undue financial
burden on such air carrier.
(8) To require each officer and director of any
air carrier to transmit a report describing the
shares of stock or other interest held by such air
carrier with any persons engaged in any phase
of aeronautics, and the holding of the stock in,
and control of, other persons engaged in any
phase of aeronautics.
(D) The Board may investigate, upon complaint
or upon its own initiative, whether any
individual or air carrier, domestic or foreign, is
violating any provision of this Act, or the rules
and regulations issued thereunder, and shall
take such action, consistent with the provisions
of this Act, as may be necessary to prevent
further violation of such provision, or rules and
regulations so issued.
(E) The Board may issue subpoena or subpoena
duces tecum, require the attendance and
testimony of witnesses in any matter or inquiry
pending before the Board or its duly authorized
representative, and require the production of
books, papers, tariffs, contracts, agreements
and all other documents submitted for
purposes of this section to be under oath and
verified by the person in custody thereof as to
the truth and correctness of data appearing in
such books, papers, tariffs, contracts,
agreements and all other documents.
(F) The Board may review, revise, reverse,
modify, or affirm on appeal any administrative
decision or order of the Administrator on
matters pertaining to:
(1) Grounding of airmen and aircrafts; or
(2) Revocation of any certificate or the denial
by the Administrator of issuance of any
certificate; or
(3) Imposition of civil penalty or fine in
connection with the violation of any provision
of this Act or rules and regulations issued
thereunder.
(G) The Board shall have the power, either on
its own initiative or upon review on appeal from
an order or decision of the administrator, to
determine whether to impose, remit, mitigate,
increase, or compromise, such fines and civil
penalties, as the case may be.
(H) (1) The Civil Aeronautics Board shall be
advised of, and shall consult with the
Department of Foreign Affairs concerning the
negotiation of any air agreement with foreign
governments for the promotion, establishment,
or development of foreign air transportation.
(2) In exercising and performing its powers and
duties under the provisions of this Act, the Civil
Aeronautics Board shall take into consideration
the obligation assumed by the Republic of the
Philippines in any treaty, convention or
agreement with foreign countries on matters
affecting civil aviation.
Sec. 14. Delegation of authority to conduct
hearings. The Board may designate in writing
any of its members or any of its officer to
conduct hearings and investigations on any
matter pending before the Board and for that
purpose the person so designated shall have
authority to administer oaths, issue subpoena
and subpoena duces tecum, require the
attendance and testimony of witnesses,
examine witnesses, make ocular inspection of
or enter into any airline establishment, building,
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place or premise in the performance of its

official business.