DOTr reiterates MIAA jobs 'safe' in NAIA privatization

Transportation Secretary Jaime Bautista reassured personnel of the Manila International Airport Authority (MIAA) that none of them will be displaced as the government is set to turn over the operations and maintenance of the Ninoy Aquino International Airport (NAIA) to the private sector.

In a statement on Saturday, the Department of Transportation (DOTr) made the reassurance to MIAA’s staff during the agency’s 42nd anniversary on Friday.

"Part of the concession agreement is for the concessionaire to offer positions to existing employees of Manila International Airport Authority," Bautista said.

"Be it regular employees, contract of service or job order. Ibig sabihin, walang mawawalan ng trabaho dito (This means, no one will lose their jobs)," added Sec. Bautista.

Transportation Undersecretary for Planning and Project Development Timothy John Batan had earlier said that the private group that bagged the concession deal to take over NAIA’s operations is required to offer jobs to the current workers of the airport to ensure no job losses would result from the privatization initiative. 

In February, the DOTr announced that SMC-SAP & Company Consortium won the 15-year concession deal to rehabilitate, operate, and expand NAIA, with an option for a 10-year extension depending on the performance of the concessionaire. 

The winning group is made up of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp.

Bautista, during the announcement of the winning bidder, had also said that no jobs will be lost when SMC-SAP group takes over NAIA as “employees will be absorbed” and some will be retained by the MIAA, which will remain as the regulator of the airport.

Airport operations

The Transport chief reiterated this, saying that the incoming concessionaire will prioritize hiring current employees, adding that the concessionaire will offer jobs to employees involved in operations.

Bautista added that MIAA employees not involved in operations will remain with the agency.

"If you believe you have a particular skill-set necessary to keep this airport functioning, you have no reason to be anxious," the Transportation chief said.

MIAA has 1,288 organic personnel; 2,554 contract of service staff; and 80 job order personnel as of December 31, 2022, based on a Commission on Audit report posted on the agency’s website.

Based on the timeline for the NAIA PPP project, the DOTr is targeting turning over the operations of the country’s main airport to the winning private sector group on September 11, 2024.

The SMC-SAP consortium would need to make an upfront payment of P30 billion to the government and another P2 billion in annual payments for the duration of the contract.

This is on top of the over 82% of its gross revenues it committed to remit to the government.

The group is committing at least P122.3 billion in capital investments for the entire 25-year concession period or about P4.89 billion per year.

The government is expecting to generate P900 billion in revenues from the NAIA PPP project, inclusive of the upfront payment, annual payments, and the committed government revenue share.

“We need to reverse NAIA’s world’s worst airport reputation. That needs to happen fast. Make sure you have the right morals and values when the transition starts,” Bautista said.

Batan had said that the air traveling public can expect “quick gains” within the first year of the private sector’s takeover of NAIA’s operations.

Among the improvements to be expected are “greater availability of parking; shorter and more predictable waiting times from check-in to immigration to security; availability of seats in the pre-departure gate; baggage coming out of the belly of the plane up to the conveyor belt in a predictable amount of time; reliable operating elevators, escalators, passenger boarding bridges, reliable lighting…”

—Ted Cordero/ VAL, GMA Integrated News