Presidential Decree No. 895 (PD 895) — Authorizing the Civil Aeronautics Administration to Impose Retaliatory or Compensating Fees, Rentals and Charges on Foreign Airlines.
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. 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.
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.
SEC. 3. All laws, decrees, orders, rules and regulations
or part thereof inconsistent with this Decree are hereby repealed or
modified accordingly.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
