TRANSPORTATION notice to all scheduled Philippine Domestic operators.

Grand Air filed its

[3R] PAL v. CAB compliance and requested for a Temporary Operating Permit (TOP).
GR No. 119528 | March 26, 1997  PAL filed an opposition to the application on the ground that the CAB had
Torres, J. no jurisdiction to hear the application until Grand Air first obtains a
Doncila franchise to operate from Congress.
 The Chief Hearing Officer denied the opposition and the CAB approved the
PETITIONER: PHILIPPINE AIRLINES, INC., issuance of the TOP for a period of 3 months. The opposition for the TOP
RESPONDENTS: CIVIL AERONAUTICS BOARD and GRAND INTERNATIONAL was likewise denied. The CAB justified its assumption of jurisdiction over
AIRWAYS, INC. Grand Air’s application on the basis of Republic Act 776 which gives it the
TOPIC: specific power to issue any TOP or Certificate of Public Convenience and
 1. Air; ii. Civil Aeronautics Board Necessity.
CASE SUMMARY: ISSUES:
 GrandAir applied for a CPCN and a TOP which PAL opposed on the  WON CAB can issue a CPCN or TOP
ground that CAB has no jurisdiction in taking cognizance of such RULING:
applications. CAB then denied the opposition and approved a TOP in favor  Yes. According to the Court, The Board is expressly authorized by
of GrandAir. The Court ruled that the Civil Aeronautics Board has the Republic Act No. 776 to issue a temporary operating permit or Certificate
authority to issue a Certificate of Public Convenience and Necessity, or of Public Convenience and Necessity, and nothing contained in the said
Temporary Operating Permit to a domestic air transport operator, who, law negates the power to issue said permit before the completion of the
though not possessing a legislative franchise, meets all the other applicant’s evidence and that of the oppositor thereto on the main
requirements prescribed by law. Congress, by giving the respondent petition.
Board the power to issue permits for the operation of domestic transport  It is generally recognized that a franchise may be derived indirectly from the
services, has delegated to the said body the authority to determine the state through a duly designated agency, and to this extent, the power to
capability and competence of a prospective domestic air transport operator grant franchises has frequently been delegated, even to agencies other than
to engage in such venture. This is not an instance of transforming the those of a legislative nature.
respondent Board into a mini-legislative body, with unbridled authority  The trend of modern legislation is to vest the Public Service Commissioner
to choose who should be given authority to operate domestic air transport with the power to regulate and control the operation of public services
services. under reasonable rules and regulations, and as a general rule, courts will not
DOCTRINE: interfere with the exercise of that discretion when it is just and reasonable
 The Civil Aeronautics Board has the authority to issue a Certificate of and founded upon a legal right.
Public Convenience and Necessity, or Temporary Operating Permit to a  The Civil Aeronautics Board has the authority to issue a Certificate of
domestic air transport operator, who, though not possessing a legislative Public Convenience and Necessity, or Temporary Operating Permit to a
franchise, meets all the other requirements prescribed by law. domestic air transport operator, who, though not possessing a legislative
 Congress, by giving the respondent Board the power to issue permits for franchise, meets all the other requirements prescribed by law.
the operation of domestic transport services, has delegated to the said  Congress, by giving the respondent Board the power to issue permits for
body the authority to determine the capability and competence of a the operation of domestic transport services, has delegated to the said
prospective domestic air transport operator to engage in such venture. body the authority to determine the capability and competence of a
This is not an instance of transforming the respondent Board into a mini- prospective domestic air transport operator to engage in such venture.
legislative body, with unbridled authority to choose who should be given This is not an instance of transforming the respondent Board into a mini-
authority to operate domestic air transport services. legislative body, with unbridled authority to choose who should be given
FACTS: authority to operate domestic air transport services.
 Grand Air applied for a Certificate of Public Convenience and Necessity Dispositive:
with the Civil Aeronautics Board (CAB). The Chief Hearing Officer issued a  ACCORDINGLY, in view of the foregoing considerations, the Court RESOLVED to DISMISS the
instant petition for lack of merit. The respondent Civil Aeronautics Board is hereby DIRECTED to
notice of hearing directing Grand Air to serve a copy of the application and
CONTINUE hearing the application of respondent Grand International Airways, Inc. for the
issuance of a Certificate of Public Convenience and Necessity.