Manila: Airport charges are set to soar as Ninoy Aquino International Airport (NAIA) user fees will rise under the government’s concession deal with the private sector, according to the Department of Transportation (DOTr).
Transportation Secretary Jaime Bautista announced recently that terminal fees for passengers will increase from the current 500 pesos to 550 pesos (about $10) to 950 pesos ($16.82).
This nearly 70-per cent fee hike will be charged to each passenger.
Approval
The new fees, however, need Cabinet approval. The project increase, however, remains competitive compared to similar fees charged by main aviation gateways in neighbouring countries.
For example, Kuala Lumpur International Airport levies a RM70 ($16.08) airport tax per passenger (effective June 1, 2024). Ho Chi Minh airport in Vietnam charges a $15 international departure tax.
Singapore’s Changi Airport, on the other hand, charges a much higher airport tax of S$65.20 (effective April 1, 2024), or $49.95.
OFWs exemption to stay?
Outbound Overseas Filipino workers (OFWs), are currently exempted from paying airport taxes, upon presenting relevant documents.
It is not immediately clear if the current exemption will stay under the new airport management.
Takeoff, landing fees
For airlines, NAIA takeoff and landing fees charged to airlines will also rise, though specific amounts are yet to be disclosed.
The San Miguel Corporation-led consortium, known as the New NAIA InfraCorp., is set to kick off a 170.6-billion-peso ($3.02 billion) rehabilitation project on September 14, 2024, under a concession agreement with the government.
“We need to compensate the concessionaire for their investments," Bautista told local media in Tag-lish, adding that with these investments, NAIA's capacity will improve from 32 million to 60 to 62 million passengers annually. This would lead to a more comfortable, better experience for passengers, Bautista said.
Bautista also hinted that the government may waive some revenues to minimise the fee hike.
The concessionaire is composed of conglomerates San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc. and Incheon International Airport Corporation (IIAC).
During the submission of bids, the group offered to share with the government 82.16 per cent of future gross revenues, excluding Passenger Service Charges. Following the PPP deal signing, consortium members was mandated incorporate into a Special Purpose Company (SPC) and will be called New NAIA InfraCorp.
Major changes are expected at NAIA as a new consortium takes over operations. These changes aim to improve passenger experience, reduce congestion, and upgrade facilities. Key elements include new terminal layouts, enhanced security, and improved digital services.
The goal: transform NAIA into a world-class airport that can handle growing traffic demands and offer better services to both local and international travelers.
