DFA opposes terminal fee integration in airline tickets

MANILA, Philippines - The Department of Foreign Affairs (DFA) is opposed to the collection of the P550 airport terminal fee when purchasing airline tickets.

The fee, otherwise known as the International Passenger Service Charge or IPSC, is collected when a passenger buys airline tickets for flights at the Ninoy Aquino International Airport.

This was implemented by airline companies after the Manila International Airport Authority (MIAA) issued Memorandum Circular 8.

In a letter addressed to Transportation and Communications Secretary Joseph Emilio Abaya on March 13, Foreign Affairs Undersecretary Laura del Rosario said, “the DFA conveys the sentiment of overseas Filipino workers (OFWs) worldwide in objecting to the collection of the airport terminal fee, as it may cause inconvenience and unnecessary burden to them.” 

While the law exempts OFWs from paying terminal fees, the circular – by integrating the fee into the ticket cost – forces OFWs to pay them. The MIAA said the OFWs can ask for a refund by presenting documents that prove they are overseas workers.

“The DFA supports the proposal to suspend the implementation of Memorandum Circular 8 while the memorandum is under review,” Del Rosario said.

The Department of Labor and Employment has written Abaya, reminding him that OFWs are exempted from the airport terminal fee under Section 35 of the Migrant Workers Act or Republic Act 8042 as amended by RA 10022.