Travel cost adjustments seen under new NAIA operator —local airlines

The Air Carriers Association of the Philippines (ACAP) on Wednesday said passengers should expect adjustments in travel costs once the New NAIA Infrastructure Corp. (NNIC) takes over the operations and management of the Ninoy Aquino International Airport (NAIA).

NNIC, formerly SMC SAP & Co. Consortium, will officially take over NAIA on Saturday, September 14.

In a statement, ACAP expressed its support for NNIC, noting that it “looks forward to the anticipated infrastructure improvements and their positive impact on passenger experience.”

The group counts as members the country’s largest carriers, namely AirAsia Philippines, CebGo, Cebu Pacific, PAL Express, and Philippine Airlines.

ACAP, however, said passengers may expect adjustments in travel costs once new airport fees are implemented.

“ACAP will continue to collaborate with NNIC and the government to help cushion the effects of any travel cost adjustments and to ensure that the interests of both airlines and passengers are represented,” the group said.

“We look forward to positive outcomes for all stakeholders in the course of the transition to privatized airport management,” it added.

The Department of Transportation (DOTr) earlier said that passenger terminal and airport fees are expected to increase at the soon-to-be privatized NAIA.

“Terminal fee will be increased… that will be in 2025. Actually, what we are looking at is P950," Transportation Secretary Jaime Bautista had said.

Currently, terminal fees at NAIA stand at P200 for domestic travelers and P550 for international travelers.

The Transport chief had said the last increase in terminal fees was 24 years ago.

Meanwhile, NNIC general manager Angelito Alvarez said that the agreement inked with the government indicates that an increase would only be effective a year after the company took over NAIA. 

“ACAP remains committed to working closely with NNIC and is hopeful that the adjustments in fees will result in enhanced operational efficiency at NAIA, ultimately improving the customer experience,” the group said.

NNIC has committed at least P122.3 billion in capital investments for the entire 25-year concession period, equivalent to P4.89 billion per year. 

It 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.

NNIC also announced that terminal reassignments among airlines using the NAIA will be implemented. 

Under its plan, the firm said NAIA Terminal 1 will be used by flag carrier Philippine Airlines, while Terminal 2 will be a purely domestic terminal, including those of Cebu Pacific. —AOL, GMA Integrated News