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WHEREAS, the Civil Aeronautics Board, under the provisions of Republic Act No. 776, as amended, is given the power to regulate the economic aspect of air transportation, to issue, make and amend such general and special rules and regulations to carry out the provisions of the said Act and to pass upon the reasonableness of, approve or disapprove, the conditions of carriage or tariff which an airline desires to adopt;

WHEREAS, experience has shown that there is need to make the rules and regulations issued by the Civil Aeronautics Board under Republic Act No. 776 which affect not only the airlines but their passengers as well and the conditions of carriage or passenger and or cargo tariff approved by the Civil Aeronautics Board, binding' upon the passengers and or shippers. In order to foster sound economic conditions in air transportation, to improve the relations between air carriers arid their passengers and or shippers and enhance the efficiency of airline operations;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order that all valid rules and regulations issued by the Civil Aeronautics Board pursuant to the provisions of Republic Act No. 776 and the conditions of carriage and tariff, safety, order and discipline, duly approved by the Civil Aeronautics Board, shall be bidding upon the passenger and/or shipper, provided, that, such rules and regulations, conditions of carriage or tariff, safety, order and discipline shall have first been published in a newspaper of general circulation once a week for two (2) consecutive weeks.

This Decree shall take effect immediately.

Done in the City of Manila, this 28th day of November, in the year of Our Lord, nineteen hundred and seventy-four.