VZCZCXYZ5814
OO RUEHWEB

DE RUEHML #0548 0640956
ZNR UUUUU ZZH
O 040956Z MAR 08
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9985
INFO RULSDMK/DEPT OF TRANSPORTATION WASHDC IMMEDIATE
RUEANHA/FAA WASHDC IMMEDIATE
RUEHKO/AMEMBASSY TOKYO IMMEDIATE 3492
RUEHZU/APEC COLLECTIVE  IMMEDIATE

UNCLAS MANILA 000548 
 
SIPDIS 
 
STATE FOR EAP/MTS AND EB/TRA/OTP 
TOKYO FOR FAA 
 
SENSITIVE, SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAIR ECON RP
SUBJECT: Civil Aviation Authority of the Philippines 
 
REF: Manila 202 
 
¶1.  (SBU) Philippine President Gloria Macapagal-Arroyo signed into 
law on March 4 a bill creating the Civil Aviation Authority of the 
Philippines (CAAP).  This is the first bill passed by the 14th 
Congress, reflecting the importance the Arroyo Administration 
attaches to improving civil aviation safety oversight and regaining 
a good safety rating (reftel).  However, there has been no decision 
on who will head the new agency or on hiring consultants to assist 
in regaining Category 1.  Embassy representatives joined lawmakers, 
industry, and aviation officials attending the signing ceremony and 
urged further prompt remedial action. 
 
¶2.  (SBU) The Federal Aviation Administration officially downgraded 
Philippine civil aviation oversight in January 2008 from Category 1 
to Category 2 due to its failure to implement safety standards set 
by the International Civil Aviation Organization, as reported 
reftel.  The creation of a CAAP is a significant step forward 
towards improving oversight since it has many powers that the old 
Air Transportation Office lacked and such can retain airport fees 
and pay higher salaries to its employees. 
 
¶3.  (SBU) During the signing ceremony, President Arroyo said that 
implementing rules and regulations for the CAAP would be completed 
in one month and it would officially take over the oversight 
function in May.  She added that the Philippines could invite the 
Federal Aviation Administration to re-examine the safety situation 
as early as June. 
 
¶4.  (SBU) No announcement was made of who would head the CAAP, and 
there were different views among the attendees on the procedures and 
timing of such an appointment.  There were also different views on 
the hiring of a consultant to assist with the process of regaining a 
good safety rating.  Some officials told us that the yet 
unidentified head of the CAAP would make the decision on which 
consultant to hire. 
 
¶5.  (SBU) We urged officials to move forward as quickly as possible 
with their decision on hiring a consultant and urged airline and 
industry representatives to work together in assisting in drafting 
proposed implementing rules and regulations for the CAAP. 
 
KENNEY