Hike in NAIA fees to have effect on pricing — AirAsia, Cebu Pacific

The recent and upcoming increases in fees and charges on the use of Ninoy Aquino International Airport’s (NAIA) facilities would have an impact on the costs for the air-traveling public, according to local low-cost carriers AirAsia Philippines and Cebu Pacific.

The Department of Transportation (DOTr) has confirmed that landing and take-off fees charged against airlines using NAIA has been increased, beginning October 1, 2024.

Transportation Secretary Jaime Bautista, however, said that the increase will not necessarily lead to higher airfares, noting that airlines can absorb part of it or pass on portions of the costs to passengers.

In a statement, AirAsia Philippines said that the “adjustments, covering fees, dues, charges and assessments, are expected to influence overall ticket pricing.”

Nonetheless, AirAsia Philippines head of Communications and Public Affairs Steve Dailisan said that the airline is still carefully evaluating the potential operational impact of the new airport fees.

"While these adjustments present challenges, our guests can count on our brand promise of offering reasonable fares, so that everyone can fly," said Dailisan.

Cebu Pacific, likewise, said that increases in landing and takeoff fees at NAIA “will impact both airlines and passengers.”

“We recognize that it is necessary to invest in the improvements in both hard and soft infrastructure and look forward to working closely with NNIC for the benefit of our passengers,” Cebu Pacific said.

“We are optimistic that these enhancements will lead to more streamlined operations and better services, benefiting both passengers and airlines in the long term,” the Gokongwei-led carrier added.

Apart from take-off and landing fees, the New NAIA Infrastructure Corporation (NNIC) —the private operator of NAIA— is set to increase passenger service charge next year from the current P550 to P950 for international departing passengers and from P200 to P390 for domestic departing passengers.

NNIC General Manager Angelito Alvarez, for his part, said airfares are determined by revenue management strategies of airlines and not only by operational costs.

“Increase in fare are revenue management [strategy] of airlines… it’s not just the take-off and landing fees… So it’s a revenue management scheme,” Alvarez said.

The NNIC — made up of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp. — took over NAIA on September 14, 2024.

 The NNIC is investing approximately P144 billion to manage and improve NAIA under a 15-year concession, extendable by 10 years, which would be contingent on meeting key performance targets. — RSJ, GMA Integrated News