15-year NAIA transformation takes flight

MANILA, Philippines — A minute after midnight yesterday, San Miguel Corp. chairman and CEO Ramon Ang received from Manila International Airport Authority general manager Eric Ines the symbolic key to the Ninoy Aquino International Airport (NAIA), officially jumpstarting a 15-year facelift for the premier gateway to the country, once considered one of the worst in the region.

SMC, through New NAIA Infrastructure Corp. (NNIC), intends to turn the airport into a world-class facility that can lure more tourists and travelers, create jobs and help propel the country to sustainable progress.

“A world-class airport means more jobs, more tourists and a much stronger and more prosperous Philippines,” said Ang, who also chairs the NNIC, at the turnover ceremony at NAIA Terminal 3.

NNIC general manager Angelito Alvarez and Transportation Undersecretary Robert Lim witnessed the turnover.

“With continued support and cooperation from the government, airlines, passengers and airport staff, we can achieve all our targets and transform NAIA into an airport every Filipino can be proud of,” Ang said.

“The baton has been passed and now it is our turn in NNIC to carry it forward to the finish line,” Alvarez, for his part, said.

“Today, we celebrate the competitive spirit of the winning consortium, which brings financial muscle, management expertise and the technical operations strength and experience of Incheon Airport,” Lim said, referring to project partner Incheon International Airport Corp., the operator of South Korea’s main airport.

The NNIC is tasked to raise NAIA’s passenger capacity to 62 million per annum, from 35 million currently. The concessionaire is also mandated to increase aircraft movement on its runway to 48 per hour, from just 40, in compliance with International Civil Aviation Organization (ICAO) standards.

Furthermore, the government expects the rehabilitation to generate at least 58,000 jobs, catering to the labor needs of expanding and improving the airport.

Likewise, the government should receive a sum of P911.11 billion from the mix of payments that NNIC would make as operator, comprising the 82.16 percent share in revenues and the annuity fee of P2 billion.

The project covers improving aircraft parking bays, expanding vehicular parking areas, more food and beverage and retail options and more convenient land transport connectivity, among others.

The NNIC consortium of SMC and Incheon International Airport Corp. has committed to spend P170 billion for the project.

The NNIC has assured the public that the transition will be seamless, with no disruption to airport operations.

Travelers can expect business as usual, with flights, check-ins and other services proceeding as normal.

The plans for NAIA’s modernization, including terminal reassignments and infrastructure upgrades, will be implemented gradually and strategically in the coming months and years.

Within the next three to six months, the project will guarantee functional escalators and toilets, stable power and water, improved air conditioning, upgraded baggage handling, faster passenger processing, more seating and enhanced WiFi at the airport.

Within three years, there will be runway improvements, increased terminal capacity, improved commercial spaces, better traffic flow and a direct link from NAIA Terminal 3 to the Skyway system.

The long-term goal is the construction of a new terminal building to accommodate an additional 35 million passengers annually.

Previously, BusinessFinancing.co.uk ranked NAIA as the fourth worst gateway in Asia and Middle East for business class travelers. The airport had on several occasions suffered from equipment failure, the most serious of which was when it vanished from international airspace on New Year’s Day in 2023, delaying hundreds of flights to the inconvenience and outrage of more than 56,000 travelers.

Advocacy groups like AirportWatch.PH has questioned the capacity of SMC to deliver large-scale projects, citing delays in the construction of the P125.04-billion Metro Rail Transit Line 7.