AUTHORIZING THE CIVIL AERONAUTICS ADMINISTRATION TO IMPOSE RETALIATORY OR COMPENSATING FEES, RENTALS AND CHARGES ON FOREIGN AIRLINES.

• Number: Presidential Decree No. 895
• Sections: 5

Preamble

WHEREAS, the Philippine flag carrier performs international

air transportation services which are of vital importance to the

foreign commerce, trade and tourism interests of the Philippines,

including its balance of payments and foreign exchange reserves, the

Postal Service and national security and defense;

WHEREAS, it is found that the Philippine flag carrier's

ability to compete with foreign air carriers is currently being weakened

by a variety of discriminatory and unfair competitive practices adopted

and implemented by foreign countries, such as, the discriminatory

method of imposing certain airport charges, and the imposition of

exhorbitant fees, rentals and charges which are unrelated to the cost of

providing the particular service or facility;

WHEREAS, it is also found that in most countries of the

world, it is now the prevailing practice and policy to require or give

preference to the use of national flag carriers for official government

international air transportation and for air transportation required by

organizations, institutions or corporations owned or controlled by the

Government, in order to conserve and save foreign exchange and improve

the balance of payments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution,

do hereby order and decree as follows:

Section 1

SECTION 1. The Civil Aeronautics Administration is hereby

authorized and empowered to determine and impose retaliatory or

compensating charges, fees and rentals on foreign airlines whose

countries impose excessive or discriminatory charges, fees and rentals

upon the Philippine air carriers, equal to the amount of the excessive,

or discriminatory charges, fees and rentals imposed, directly or

indirectly, by such foreign countries on the Philippine air carriers.

Such charges, fees and rentals shall be deemed excessive or

discriminatory when they unreasonably exceed comparable charges, fees

and rentals in the Philippines.

The amounts collected by the Civil Aeronautics Administration from

such retaliatory or compensatory charges, tees and rentals shall accrue

to a revolving fund from which payments shall be made to the Philippine

air carriers affected in such amounts as would adequately compensate

such carriers for the excessive or discriminatory charges, fees and

rentals paid to the foreign countries involved, and the balance of the

fund, if any, shall be utilized by the Civil Aeronautics Administration

for the construction, repair, maintenance and improvement of the Manila

International Airport and other airports and their related facilities

and for no other purpose.

Section 2

SEC. 2. The Civil Aeronautics Administration and the Civil

Aeronautics Board are hereby required to survey the air practices,

policies and requirements adopted and implemented by foreign countries

in order to determine whether they are discriminatory or unreasonable in

so far as they affect the Philippine air carriers. Once the

determination is made that any practice, policy or requirement imposed

by any foreign country upon any Philippine air carrier is discriminatory

or unreasonable, the Civil Aeronautics Administration and the Civil

Aeronautics Board are hereby authorized and empowered to adopt and

implement such measures, rules and regulations or practice within their

respective competence and jurisdiction as would compensate the

Philippine air carrier affected or place such carrier in a more

competitive position in the international air transportation system.

Section 3

SEC. 3. All laws, decrees, orders, rules and regulations

or part thereof inconsistent with this Decree are hereby repealed or

modified accordingly.

Section 4

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 26th day of February, in the

year of Our Lord, nineteen hundred and seventy-six.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JUAN C. TUVERA

Presidential Assistant