DOTr confirms looming fees hike at NAIA

The Department of Transportation (DOTr) on Friday said passenger terminal and airport fees are expected to increase at the soon-to-be privatized Ninoy Aquino International Airport (NAIA).

At a press conference in San Juan City, Transportation Secretary Jaime Bautista clarified that the proposed hikes in passenger service charge, or terminal fee, and takeoff and landing fees are still subject to approval by the Cabinet, pursuant to Administrative Order 1.

"Terminal fee will be increased… that will be in 2025. Actually, what we are looking at is P950," he said.

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

Bautista said the last increase in terminal fees was 24 years ago.

"It is about time. We need to implement reforms and modernize the airport," the Transport chief said.

As for the rise in landing and takeoff fees that are charged against airlines, Bautista said this could be implemented before the end of the year.

"Landing and takeoff fees are not a major expense of airlines… it is not a big percentage of the cost of operations," he said.

The Transportation secretary said that increasing fees were necessary to compensate for the investments to be made by the NAIA Infrastructure Corp., the private company that bagged NAIA's operations and maintenance contract.

"With the investments that they will do, the efficiency of the airport will improve… from 32 million capacity it will go up 60 [million] to 62 million, and that could mean a more comfortable experience," Bautista said.

The DOTr inked last March the P170.6-billion concession agreement with the NAIA Infra Corp.—then called SMC SAP & Co. Consortium—after the latter offered the highest share of its future revenues from operating the airport to the government.

The group 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.

San Miguel Corp. president and chief executive officer Ramon Ang last month unveiled plans to build a new passenger terminal building with a capacity of 35 million passengers per year, with a car park that has a capacity of 9,000 vehicles.

The government, meanwhile, is expecting to generate P900 billion in revenues from the public-private partnership (PPP) project, inclusive of upfront payment, annual payments, and the committed government revenue share. — VDV, GMA Integrated News