NAIA fee hike signed before turnover

MANILA, Philippines — The government plans to issue the new matrix of service fees at the Ninoy Aquino International Airport (NAIA) before the gateway is turned over to private control on Sept. 14.

Transportation Undersecretary Timothy John Batan told reporters that NAIA will be handed over to the New NAIA Infrastructure Corp. (NNIC), led by San Miguel Corp. (SMC), as scheduled.

Before this, Batan said the government would approve the revised menu of airport fees to inform stakeholders in advance of the price changes in NAIA.

Transportation Secretary Jaime Bautista earlier said NAIA charges would start increasing by the end of 2024 as part of the P170.6 billion concession that the government awarded to NNIC. In particular, airlines will take the first hit in a series of rate adjustments at the gateway.

Based on initial discussions, landing and take-off fees will be increased this year, while passenger service charges (PSC) will be hiked in 2025. As expected, this proposal is rejected by consumer groups, of which the latest to join the clamor is Bantay Konsyumer, Kalsada, Kuryente (BK3).

Under the proposed adjustment, the PSC will be raised to P950 for international passengers, from P550 currently, while it will be bloated to P390 for domestic travelers, from P200 at present.

Bautista said these price hikes would cover the investments to be made by NNIC, which, under the leadership of SMC, managed to win the contract to rehabilitate NAIA.

Once the airport is turned over, NNIC will get a minimum of 15 years to upgrade the airport and double its passenger capacity to more than 60 million per annum.

However, consumer groups like BL3 want NNIC to prove its worth first as a concessionaire. In a statement, BK3 secretary general Patrick Climaco questioned why consumers have to pay for the rehabilitation of NAIA when it should be the obligation of NNIC.

Generally, Climaco believes an increase in airport fees would discourage Filipinos and foreigners from traveling in the Philippines. However, he said travelers might be encouraged to pay more if they see that the airport has improved under private management.

“The people have yet to experience the improvement in NAIA, but they are already asked to pay unconscionable airport fees increase,” Climaco said.

“We also understand that there is an equivalent fee to the rehabilitation of NAIA, but this should be implemented at the right time,” he added.

The increase in fees is among the parameters set by the government for the NAIA project.