AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES,

AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR OTHER

PURPOSES (RA 9497)

SEC. 21. Policies. - In the exercise and performance of its powers and duties under this Act, the
Authority shall consider the following, among other things, as being in the public interest and in
accordance with the public convenience and necessity:

(a) The development and utilization of the air potential of the Philippines;

(b) The encouragement and development of an air transportation system properly

adapted to the present and future of foreign and domestic commerce of the Philippines;

(c) The regulation of air transportation in such manner as to support sound

economic condition in such transportation and to improve the relations between
air carriers;

(d) Ensuring the safety, quality, reliability, and affordability of air transport services for the
riding public; and

(e) The encouragement and development of a viable and globally competitive Philippine
aviation industry.

SEC. 24. Powers of the Board. - The Board shall have the following general powers:

(a) Provide comprehensive policy guidance for the promotion and development of the Philippine
aviation industry, as provided for in this Act;

SEC. 25. Issuance of Rules and Regulations. - The Board, in consultation with the Director
General, shall issue and provide for the enforcement of such orders, rules and regulations as
may be necessary to give effect to the provisions of this Act. All rules and regulations issued in
accordance with the provisions of this Act shall be formally promulgated and periodically
reviewed and updated in accordance with the requirements of the Administrative Code of the
Philippines or any amendment or successor thereto and the International Civil Aviation
Organization Standards and Recommended Practices. Pending the promulgation of such new
rules and regulations, the current rules and regulations of the AT0 shall continue to apply.

SEC. 35. Powers and Functions of the Director General. - The Director General shall be the
chief executive and operating officer of the Authority. He shall have the following powers, duties
and responsibilities:

(i) To provide for the enforcement of the rules and regulations issued under the
provisions of this Act and to conduct investigation for violations thereto. In
undertaking such investigation, to require by subpoena ad testificandum or subpoena
duces tecum, the attendance and testimony of witnesses, the production of books,
papers, documents, exhibits matter, evidence, or the taking of depositions before any
person authorized to administer oath. Refusal to submit the reasonable requirements of
the investigation committee shall be punishable in accordance with the provisions of this
Act

(n) To impose fines and/or civil penalties in respect thereto;

(o) To participate actively with the largest possible degree in the development of international
standardization of practices in aviation matters important to safe, expeditious, and easy
navigation, and to implement as far as practicable the international standards, recommended
practices and policies adopted by appropriate international aeronautical agencies;

(s) To issue, deny, suspend, cancel or revoke any certificate, license pertaining to aircraft,
airmen and air agencies: Provided, That any order denying, suspending, cancelling, revoking
the certificate or license may he appealed to the Board, whose decisions shall he final within
fifteen (15) days from the date of notification of such denial, cancellation or revocation;

SEC. 75. Police Authority. - The Director General shall have the power to exercise such police
authority as may be necessary within the premises of airports under its jurisdiction to carry out its
functions and attain its purposes and objectives. The grant of such powers shall be in conformity
with the functions exclusively provided by law to be exercised by the Philippine National Police
and other concerned government agencies: Provided, That the Authority may request the
assistance of other law enforcement agencies, including request for deputization as may be
required. Such police authority shall be exercised in connection with the following:

(a) Maintenance of security to passengers, cargoes, aircraft, airport equipment,

structures, facilities, personnel, funds and documents;

(b) Regulating the entry to, exit from and movement within an airport;

(c) Maintenance of peace and order within the premises of an airport in coordination with
local police authorities and other authorized peace-keeping entities within an airport;

(d) Regulation and supervision of private security agencies operating within an airport;
and

(e) Enforcement of rules and regulations promulgated by the Board pursuant to the
authority granted under this Act

SEC. 75. Police Authority. - The Director General shall have the power to exercise such police
authority as may be necessary within the premises of airports under its jurisdiction to carry out its
functions and attain its purposes and objectives. The grant of such powers shall be in conformity
with the functions exclusively provided by law to be exercised by the Philippine National Police
and other concerned government agencies: Provided, That the Authority may request the
assistance of other law enforcement agencies, including request for deputization as may be
required. Such police authority shall be exercised in connection with the following:

(a) Maintenance of security to passengers, cargoes, aircraft, airport equipment,

structures, facilities, personnel, funds and documents;

(b) Regulating the entry to, exit from and movement within an airport;

(c) Maintenance of peace and order within the premises of an airport in coordination with
local police authorities and other authorized peace-keeping entities within an airport;

(d) Regulation and supervision of private security agencies operating within an airport;
and

(e) Enforcement of rules and regulations promulgated by the Board pursuant to the
authority granted under this Act.

NOTE: Prime Minister should set the ground where the Director General or the Board of CAAP
already issued the rules and regulation pursuant to their powers given by this law, and CebuPac
violated such rules and regulation (The rules and regulation = Aircrafts should be penalized for
cancellation of NUMEROUS flights. Thus, it is not punishable if they cancelled flights, but if it is in
excess or numerous, they can be); otherwise, there would be no basis for them to be punished
under this law because this law only punishes aircrafts which operate despite not having any
license or they jeopardize the safety of the passengers.

Another is we sue CAAP so they can exercise their Police Power. Lawful Purpose: Deterrence
for Aircrafts that arbitrarily cancel OR cancel without notification. Lawful Means: Merely
penalizing them.

The opposing side may argue, 9.3.1 of Cebu Pac’s terms and conditions. The Airline may
cancel, terminate or delay any flight, or suspend the operation of a flight route at any time after
a reservation has been made.

We can oppose it by: Cathay Pacific Airways v. Reyes:

[W]hen an airline issues a ticket to a passenger confirmed on a particular flight, on a
certain date, a contract of carriage arises, and the passenger has every right to
expect that he would fly on that flight and on that date. If he does not, then the
carrier opens itself to a suit for breach of contract of carriage.

**Department of Transportation and Communications-Department of Trade and Industry Joint

Administrative Order No. 1, Series of 2012, otherwise known as the Air Passenger Bill of Rights
Section 4 of the Joint Administrative Order requires airlines to provide the passenger with
accurate information before the purchase of the ticket:
Section 4. Right to Full, Fair, and Clear Disclosure of the Service Offered and All
the Terms and Conditions of the Contract of Carriage. — Every passenger shall,
before purchasing any ticket for a contract of carriage by the air carrier or its agents,
be entitled to the full, fair, and clear disclosure of all the terms and conditions of
the contract of carriage about to be purchased. The disclosure shall include, among
others, documents required to be presented at check-in, provisions on check-in
deadlines, refund and rebooking policies, and procedures and responsibility for
delayed and/or cancelled flights. These terms and conditions may include liability
limitations, claim-filing deadlines, and other crucial conditions.

In an action for breach of contract of carriage, all that is required of plaintiff is to prove the existence
of such contract and its non-performance by the carrier through the latter's failure to carry the
passenger safely to his destination||| (Japan Airlines v. Simangan, G.R. No. 170141, [April 22, 2008], 575
PHIL 359-383)

CIVIL CODE
"Art. 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in
good faith is liable shall be those that are the natural and probable consequences of the
breach of the obligation, and which the parties have foreseen or could have reasonably
foreseen at the time the obligation was constituted."

"In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all
damages which may be reasonably attributed to the non-performance of the obligation."

Article 1755 of the New Civil Code: "A common carrier is bound to carry the passengers safely as far as
human care and foresight can provide, using the utmost diligence of very cautious persons, with a due
regard for all the circumstances"||| (Japan Airlines v. Simangan, G.R. No. 170141, [April 22, 2008], 575
PHIL 359-383)