Home » Aviation, Ports/Terminals » CAB hikes fees by 20% to cope with rising costs

CABTHE Philippine Civil Aeronautics Board (CAB) said it has increased its fees and charges to help the agency cope with rising operating costs.

In CAB Resolution No. 50, the aviation regulator said it “recognized the need to adjust the administrative fees and charges to cope with the rising costs of operating expenses as indicated by increases in the consumer price index.”

Airlines seeking a certificate of public convenience and necessity (CPCN) for scheduled flights on international and domestic routes will be charged P87,264, up from the existing P72,000. The new charge for CPCN renewal is P43,632.

A CPCN is a certificate from a public board or commission required by law before a company or individual can engage in certain public undertakings or services. The certificate is meant to protect existing franchises against injurious competition.

For a foreign air carrier’s permit, the fee is P87,264 from P72,720 for scheduled routes and P65,448 from P54,540 for unscheduled.

International airfreight forwarders, in the revised fees and charges, will have to pay P14,544, up from the existing P12,120 for new certificates, and P11,635.20 for renewal, from P9,696 previously.

Domestic airfreight forwarders will be charged P10,180.80, from P8,484 previously for new certificates, and P8,726.40 for renewal, from P7,272.

For forwarders handling both international and domestic cargoes, the fees are P24,724.80 for a new CPCN and P20,361.60 for a renewal.

Cargo sales agents of freight forwarders and breakbulk agents, both international and domestic, will pay P14,544 for a new application. Before, CAB charges separately with P12,120 for international and P7,272 for domestic.

For renewal of application as cargo sales agent, a fee of P11,635.20, up from the existing P9,696 will be charged.

The CAB for years had been pushing for a 20% increase in its fees, which it last raised in 2001.

The new round of increases was in line with Administrative Order No. 31 signed on Oct. 1, 2012, allowing government agencies and government-owned or controlled corporations to rationalize the rates of their fees and charges, increase their existing rates and impose new fees and charges.

The new charges, which take effect immediately, are inclusive of a 1% legal research fee.

The CAB is the government agency mandated to regulate the economic aspect of air transportation, with general supervision, control and jurisdiction over air carriers, general sales agents, cargo sales agents, and air freight forwarders.

CAB is an attached agency of the Department of Transportation and Communications. ––Roumina M.Pablo

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