Cebu Pacific’s new 50-year franchise bill gets House final approval

MANILA, Philippines — The House of Representatives has approved on final reading a measure seeking to renew for another 50 years the franchise granted to Cebu Air Inc., operating as Cebu Pacific. 

During Monday’s session, 289 lawmakers voted to pass House Bill No. 11536, with no votes in the negative and no abstentions. 

READ: Cebu Pacific announces flight cancellations amid Middle East unrest

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Under the bill, Cebu Air will receive a new 50-year term after its franchise under Republic Act (RA) No. 7151 expires.

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The budget airline’s current franchise is set to expire on August 30, 2031, as it was granted 40 years to operate from the date the law was approved. 

The measure mandates the airline to “maintain scheduled and/or nonscheduled and/or charter air-transport services in and between any and all points and places throughout the Philippines as well as between the Philippines and other countries at such frequencies as traffic needs may require.”

READ: Cebu Pacific expanding service network in Asia

The airline must ensure its aircraft are licensed by the government and equipped with accessories in airworthy condition.

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The bill also mandates that the aircraft should be operated and maintained in line with guidelines set by the Civil Aviation Authority of the Philippines (CAAP) or other prescribed regulatory bodies. 

“The Grantee’s equipment and the operation of such equipment shall at times be subject to inspection and regulation by the CAAP whose decisions on technical matters shall be binding until revoked or annulled by superior authority under whose control this office falls or by the courts for grave abuse of discretion amounting to lack or excess of jurisdiction,” it added.  /gsg