Foreign airlines told to integrate terminal fee in ticket price

MANILA, Philippines - The Manila International Airport Authority (MIAA) has directed all foreign airlines to incorporate the P550 terminal fee imposed on international passengers in the price of airline tickets starting October.

Officials said the policy is part of efforts to reduce queuing time at the congested Ninoy Aquino International Airport (NAIA).

Transportation Secretary Joseph Emilio Abaya said MIAA has concluded talks with international air carrier representatives to include the international passenger service charge (IPSC), also known as terminal fee, in the price of airline tickets.

“It improves traveling convenience and efficiency at NAIA by removing a whole process which unnecessarily adds to the passengers’ processing time, requiring them to line up when payment can be done ahead of time,” Abaya explained.

Abaya pointed out the integration of the IPSC into airline tickets would help address the congestion problem for departing passengers at NAIA.

He added the new policy would free up a sizable area since the existing terminal fee counters would be removed.

Moreover, this policy follows international standards and practices, since the Philippines is the only member country of the Association of Southeast Asian Nations (ASEAN) that collects terminal fees on a face-to-face basis at the airport.

The MIAA is set to sign a memorandum of agreement (MOA) with international carriers later this month where the IPSC would be integrated by default in the tickets, whether purchased online or through ticketing offices or travel agents.

The one-year transition integration program would start in October while full implementation of the new policy would be in October next year.

The P550 IPSC collected by MIAA is essential for the continued operations of the airport. Of this amount, P390 is MIAA’s share for maintenance and upkeep, P100 goes to the national government and P60 is for aviation security.