Ruling on new airport fees expected by September

Ruling on new airport fees expected by September

THE Transportation department said the proposed increase in Ninoy Aquino International Airport (NAIA) fees remains under review, with a ruling expected by September before the facility is taken over by a private operator. 

“We are on track with the handover. The review of the airport fees is still ongoing by our regulators,” Transportation Undersecretary Timothy John R. Batan told reporters last week. 

The draft administrative order for the planned airport fee hike is expected to be issued before the takeover of New NAIA Infrastructure Corp. formerly the SMC SAP & Co. Consortium, on Sept. 14, he said.

The group, led by San Miguel Corp. (SMC), won the P170.6-billion contract to operate, maintain, and upgrade NAIA with  a bid of 82.1% of NAIA revenue to the government.

“Sept. 14 is still our target handover date for NAIA to the private concessionaire,” Mr. Batan said.

Asked to comment, Manila International Airport Authority General Manager Eric Jose C. Ines said the proposed airport fee hike will require Cabinet approval.

“At this time, it is still being studied… (ultimately) it is up to the Cabinet,” Mr. Ines said via Viber on Monday.

BusinessWorld sought comment from New NAIA Infrastructure Corp., but it had not replied at the deadline.

A consumer group has expressed opposition to the fees increase. 

Bantay Konsumer, Kalsada, Kuryente (BK3) said in a statement on Monday that the new airport operator must upgrade the NAIA before imposing additional airport fees. 

“The privatization of the NAIA was supposed to help the government fund the airport’s rehabilitation project,” BK3 Secretary General Patrick Climaco said.

Mr. Climaco said the project was supposed to bring in the private sector to fund the airport upgrade.

“However, instead of achieving this objective, it seems that the interests of the private group which won the contract are being prioritized rather than the public,” Mr. Climaco said.

Last month, the Department of Transportation (DoTr) said that the planned increase in passenger service fees is meant to boost the airport’s operational efficiency.

Passenger service charges, also known as terminal fees, are imposed on departing passengers.

Currently, domestic travelers pay a passenger service charge of P200, while foreign travelers pay P550. It is expected that these fees will rise to P390 and P950, respectively.

Transportation Secretary Jaime J. Bautista has said that the passenger service fees will likely be implemented in 2025, but other charges such as landing and take-off fees could be implemented before the end of the year.

All new fees are expected to be passed on to passengers via airfares.

The DoTr has said that the new fees are within the approved parameters, terms, and conditions specified in the tender documents for the NAIA rehabilitation project.

The plan to raise fees at the NAIA is based on inflation and the required capital expenditure for the airport’s upgrade, the DoTr said, adding that fees and charges at the NAIA have remained unchanged since 2000. — Ashley Erika O. Jose