Court urged to void NAIA concession deal, airport fee hike order

MANILA, Philippines — A consumer group has asked a Manila court to invalidate provisions of the concession deal for the rehabilitation of the Ninoy Aquino International Airport and parts of the Manila International Airport Authority's (MIAA) revised order raising NAIA fees.

ConsumersUnion-Philippines Inc. filed a petition on Wednesday, November 20, claiming that the concession agreement for the NAIA Public-Private Partnership (PPP) project and portions of the MIAA's Revised Administrative Order (AO) 1, Series of 2024, are "arbitrary and discriminatory."

“The group stresses that the case is not a move against development and better services for the country’s main gateway. Rather, it is a decisive action by and for consumers,” the group said in a statement. 

The petitioners argued that provisions of the concession agreement regarding "regulated" and "non-regulated" fees are unlawful and discriminatory.

They contend that these clauses allow the New Naia Infra Corp. (NNIC) to impose "non-regulated" fees without government oversight, which they claim violates the PPP code. 

“DOTr’s power to impose and change airport rates is merely a delegated power, it is unlawful for it to further delegate such power through a mere Concession Agreement in favor of NNIC,” the group’s statement read.

“Thus, the artificial distinction drawn between Regulated Charges and Non-Regulated Charges in the Concession Agreement and 2024 MIAA Revised AO is arbitrary, discriminatory, and, therefore, illegal,” it added. 

They argued that the classification of charges as "regulated" or "non-regulated" is arbitrary, lacks substantial basis, and is inconsistent with the public interest, as well as how NAIA was managed under MIAA.

The group further said that this differentiation raises questions about the validity and fairness of the charges.

Unjust and reasonable

The petitioners also denounced the rates imposed under the 2024 MIAA Revised Administrative Order, labeling them as "unjust and unreasonable."

They claimed this high revenue-sharing arrangement necessitated exorbitant fees that are detrimental to the public, violate public policy, and make NAIA one of the most expensive airports in the world. 

“The winning bidder, is prepared to deliver back to MIAA 82.16% of its Gross Revenues from its operation of NAIA is prima facie indication of the reason why draft rates that were eventually adopted in the 2024 MIAA Revised AO were too high, unreasonable, detrimental to the public and against public policy,” the group’s statement read. 

The group emphasized that these excessive charges are unaffordable for consumers and could negatively impact tourism and air commerce, further highlighting the unreasonableness of the imposed rates.

Consumer groups have called NAIA’s airport fee hike “premature and unreasonable,” calling for the halt of the administrative order’s implementation. 

One such hike occurred on October 1, when New NAIA Infra Corp. raised takeoff and landing fees at NAIA.

Despite the hike, Transportation Secretary Jaime Bautista clarified that higher fees for take-off and landing do not necessarily lead to higher airfares.