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Wednesday, March 05, 2008
Arroyo okays creation of civil aviation authority
MANILA -- President Gloria Macapagal-Arroyo on Tuesday signed into law the Civil Aviation Authority Act of the Philippines or Republic Act (RA) 9497, which creates an independent body that would regulate air transportation and services in the country.
With the passage of the new law, the Philippine government hoped that the US Federal Aviation Authority (FAA) would return the Philippines to Category 1, after downgrading it to Category 2 for failure to meet certain aviation standards.
Arroyo Watch: Sun.Star blog on President Arroyo
Under RA 9497, the Air Transportation Office (ATO) would be abolished and replaced by the Civil Aviation Authority (CAA), which shall have quasi-judicial and quasi-legislative powers with corporate attributes. The CAA would be attached to the transportation department.
In her message before signing the bill into law, Arroyo said flights would now be safer and there will no longer be any hindrance to increasing tourism and investments that would create hundreds of thousands of jobs.
Under the new law, the CAA will enjoy fiscal autonomy and its personnel would be exempted from the Salary Standardization Law. It should be governed by a board composed of Cabinet members, with the transportation secretary as chairman.
The CAA is allowed to keep its revenue collection of about P3 billion annually to be used for the improvement of its facilities and the training of personnel.
Transportation Secretary Leandro Mendoza said the government would ask for a re-audit by the FAA in June so that the downgrade would be reversed.
Tourism Secretary Joseph Ace Durano said once the Philippines is upgraded to Category 1, Philippine Airlines (PAL) could expand its operations in the US.
"For this year we have no problem because the 54 flights per week from the US to the Philippines totals about 900,000 seats per year and our target arrivals from the US this year is around 650,000," Durano said.
He said the country must be upgraded not later than this year; otherwise, PAL's expansion would be deterred. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Bacolod. (March 5, 2008 issue)
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