CHAPTER 7 THE AIRCRAFT AND CIVIL AVIATION involving the transport of passengers, cargo, or mail for remuneration

Applicable Laws or hire.

1. Civil Aviation is governed by R.A. 9497 otherwise known as a. Domestic Air Commerce within the Philippine territory
the Civil Aviation Authority Act of 2008 which was passed on b. Domestic Air Transport AT within the Phil. Territory
March 4, 2008 c. Foreign Air Transport between the Phil. and any place outside
2. Civil Aviation Regulations issued by the Civil Aviation it/wholly outside
Authority of the Philippines (CAAP) d. International Commercial Air Transport carriage by aircraft of
3. R.A. 776 and Regulations issued by Civil Aeronautics Board persons or property for remuneration or hire or the carriage of mail
4. Warsaw Convention applies to liabilities of the carriers in between any two or more countries
international transportation by air.
5. Chicago Convention PERSONS INVOLVED
1. Air Carrier or Operator person who undertakes, directly or
REGULATORY PERSPECTIVES indirectly, by lease or any other arrangement, to engage in air transpo
Airline companies in PH are subject to different regulatory services/air commerce
perspectives. SC observed in Kuwait Airways vs. PAL: There is no doubt 2. Philippine Carrier air carrier
that PAL forbears under several regulatory perspectives as well as 3. Foreign Air Carrier
the fact that air travel necessitates steady traversal of international 4. Airman pilot, mechanic, aeronautical engineer, flight radio
boundaries, the amity between nations. operator or member of the crew

Economic Aspects:
CIVIL AVIATION 1. General Sales Agent
Refers to the operation of any civil aircraft for the purpose of
2. Cargo Sales Agent
general aviation operations, aerial work or commercial air transport
operations. 3. Air Freight Forwarders
Aircraft any machine that can derive support in the atmosphere from 4. Off-line Carrier
the reactions of the air other than the reactions of air against the 5. Air Taxi Operator
earths surface.
NB: Civil Aviation Act of 2008 covers only Civil Aircraft (Not State AC) Charter of Aircraft
Air transportation performed by an air carrier where the entire
REGISTRATION OF AIRCRAFT capacity or possibly less, has been engaged for the movement of
Philippine Aircraft __ aircraft registered in the PH in accordance with persons and their personnel baggage or for the movement of property
the requirements of CAA of 2008 which is consistent with Art. 17, on a time, mileage or trip basis by:
Chapter of Chicago Convention where aircrafts have the nationality a. A person for own use
of the State in which they are registered. b. Representative of a group
An aircraft cannot be validly registered in more than one State, c. Airfreight
but its registration may be changed from one State to another.
An aircraft shall be eligible for registration if the following Classifications:
requirements are present: 1. On Route Charter points where aircraft is authorized to provide
1. The aircraft is owned by or leased to a citizen or citizens service (contrary to Off Route)
of the Philippines or corporations or associations
2. Pro-Rata Charter cost divided among passengers transported
organized under the laws of the Philippines at least 60
per centum of whose capital is owned by Filipino 3. Single Entity Charter borne by the charterer
citizens 4. Mixed Charter
2. Aircraft is not registered under the laws of any foreign
country SOVEREIGNTY AND AIR FREEDOMS
Exception: Art. 1, Chapter 1 Chicago Convention
Foreign-owned or registered aircraft may be - Contracting States recognize that every state has complete and
registered if utilized by members of aero clubs organized for exclusive sovereignty over the airspace above its territory.
recreation, sport or the development of flying skills as a
prerequisite to any aeronautical activities within the Air Services Agreement bilateral treaty regulating air traffic rights
Philippine airspace. between States
Freedoms of the Air
NB: No aircraft can operate unless it displays nationality and (see page 346)
registration marks. CANCELLATION OF COMMERCIAL AGREEMENT
CAB has the indispensable authority to compel local air carriers to
RECORDING OF CONVEYANCES comply with government determined policies even at the expense of
All conveyances made or executed, which affects the title to, or economic rights.
interest in, any aircraft of Philippine registry, or any portion thereof shall CABOTAGE
be registered with the CAAP. a. Consecutive Cabotage right and privilege, in respect of
Validity is subject to the following rules: scheduled international air services
1. The registration is valid only with respect to the parties and their heirs, b. Stand Alone Cabotage performed entirely within the territory of
assignees, executors, administrators, devisees, or successors in interest, the granting State.
and any person having actual notice thereof
2. The registration is valid as against all persons and any instrument, Note: Philippines has not granted the right of cabotage in this
recording of which is required shall take effect from the date of its jurisdiction.
record in the books of the Authority, and not from the date of its
execution.

MARINE INSURANCE
Insurance over aircrafts falls within the coverage of Marine Insurance
under the Insurance Code.
AIR TRANSPORTATION IN GENERAL
Refers to and includes scheduled or non-scheduled air transport
services for pay or hire, the navigation of aircraft in furtherance of a
business, the navigation of aircraft from one place to another for
operation in the conduct of a business, or an aircraft operation