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TO:	The Secretary of Foreign Affairs The Chairman, Civil Aeronautics Board
SUBJECT:	DESIGNATING PHILIPPINE AEROTRANSPORTS, INC., A SUBSIDIARY OF PHILIPPINE AEROSPACE DEVELOPMENT CORPORATION, AS THE PHILIPPINE FLAG CARRIER FOR PURE CARGO AIR SERVICES.

WHEREAS, positive government involvement in the development and improvement of air transport services has become imperative and is one of the objectives of Presidential Decree No. 286, as revised by Presidential Decree No. 696, otherwise known as the charter of the Philippine Aerospace Development Corporation (PADC);

WHEREAS, under the aforesaid Presidential Decree No. 286, as revised, the PADC, by itself or through its subsidiaries, is authorized to undertake all manner of activity, business or development projects for the establishment of a reliable aviation and aerospace industry that shall include, but not limited to, inter-alia, the operation and provision of air transport services, whether for cargo pr passengers on a scheduled, non-scheduled or charter basis on domestic and/or international scale;

WHEREAS, to attain the objectives of Presidential Decree No. 286, as revised, and in order to maximize the utilization of its equipment and to offset the costs of ownership and of maintenance thereof, achieve a reasonable return on investment, and generate foreign exchange, Philippine Aero Transport, Inc. (PATI), the air transport subsidiary of PADC is prepared to mount pure cargo regional/International air services.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Orders No. 1, dated September 22, 1972, as amended, do hereby designate Philippine Aero-Transport, Inc., as the Philippine flag-carrier for scheduled regional/international all cargo air services.

This supersedes any designation inconsistent herewith.

The Secretary of Foreign Affairs is hereby ordered and directed to take appropriate steps at diplomatic level to effect amendments of existing air agreements, and to pursue the course of action in future negotiations for bilateral air services agreements with foreign governments, as to provide for the designation of two scheduled flag-carriers: one to operate passenger, and another to offer pure cargo air services.

The Chairman of the Civil Aeronautics Board is hereby directed and instructed to assist Philippine AeroTransport, Inc., in obtaining from foreign aeronautical authorities of the countries concerned, the necessary operating permit for scheduled regional/international pure cargo air services.

Done in the City of Manila, this 30th day of June, in the year of our Lord, nineteen hundred and seventy-seven.