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The operation and management of Ninoy Aquino International Airport is now in private hands
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On September 14, private concessionaire New NAIA Infrastructure Corp took over the airport that took three decades in the making
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Led by the San Miguel group, NNIC commits itself to increasing the annual terminal capacity from 35 million passengers to 62 million within a span of four to five years of its 15-year concession period
The operation and management of Ninoy Aquino International Airport is now in the hands of a private concessionaire, New NAIA Infrastructure Corp (NNIC).
At exactly 12:00am on September 14, the documents for the turnover were officially signed during a handover ceremony in Terminal 3 by Transportation Undersecretary for Legal Affairs Reinier Yebra, Undersecretary for Aviation and Airports Roberto Lim, Manila International Airport Authority (MIAA) general manager Eric Jose Ines, San Miguel Corp (SMC) chairman as well as NNIC chairman Ramon Ang, and NNIC general manager Angelito Alvarez.
Led by the SMC group, NNIC commits itself to increasing the annual terminal capacity from 35 million passengers to 62 million within a span of four to five years of its 15-year concession period.
Last Feb. 16, the Department of Transportation announced the conclusion of bidding for the P170.6-billion NAIA rehabilitation project, with the SMC group as the winning bidder.
NNIC promised to install new toilets and refurbish existing comfort rooms; increase seating capacity; install more air-conditioning units; and provide reliable high-speed internet, within the first three to 12 months of its takeover.
Other short-term priorities include improved retail and food and beverage outlets; power redundancy; repair of existing walkalators, escalators, and elevators; upgrade of x-ray machines; and road expansion to terminal.
The new operator will also gradually implement terminal reassignment in order to improve the efficiency of runway use, thus allowing more flights.
Ang said it is an exciting time “because we are about to make history.”
The Filipino people will finally get the world-class facility that they deserve, he added.
Ang described the concession agreement as an investment for the Philippines’ future, adding that it will help the country’s economy.
“A world-class airport means more jobs, more tourists and a much more stronger and prosperous Philippines,” Ang said during the handover ceremony.
“The baton has been passed and now it is our turn in NNIC to carry it forward to the finish line,” Alvarez, for his part, said.
Transportation Secretary Jaime Bautista, through Lim, conveyed his message of support to NNIC and highlighted that a world-class NAIA will strengthen the entire Philippine transportation system while catalyzing tourism and economic growth.
“The high public expectation on operational and systems enhancements should translate to improved passenger experience and transform NAIA into a regional hub. The President and Secretary Bautista have hailed the significance of this project and hope to undertake more transport infrastructures in collaboration with the private sector. This day exudes of optimism and high hopes for a modern, safe, and comfortable airport for its citizens and visitors,” Lim said.
“Today, we celebrate the competitive spirit of the winning consortium, which brings financial muscle, management expertise, and technical operatinf strength and experience of the Incheon Airport,”Lim said.
During the transition, Alvarez said it will be “business as usual.” Changes will be done “gradually and methodically,” he said.
The MIAA will be a regulator after the turnover.
MIAA general manager Ines said 429 out of 1,200 organic employees of MIAA had been absorbed by NNIC while the rest requested to remain with MIAA. Those who cannot be accommodated will be endorsed to other government agencies, as they are still civil service eligible.
Alvarez is hopeful that despite with a lot of challenges ahead, they are united by a shared vision to uplift our nation through a world-class airport experience, “This project will take time and commitment but we will do it right, no shortcuts. While minimizing the distractions, improvements will begin immediately in tangible changes that passengers will feel by Christmas. That’s the commitment of our Chairman, by Christmas you will see significant improvements.”
Higher fees loom
Under MIAA’s revised administrative order 1 series of 2024, the revised passenger service charges will increase in the second year of NNIC’s takeover.
The fee will rise from P550 to P990 for international departing passengers, and from P200 to P390 for domestic departing passengers.
Passenger fees will again be adjusted in the sixth and eleventh year of the concession period.
Should that concession period be extended by another 10 years, adjustments on the passenger fees will be done on the 16th and 21st year of the period.
While there have been criticisms over the planned airport fee hike, Ang clarified the higher fees were determined by the government together with the Asian Development Bank and benchmarked against global standards.
Ang added that “82.1 percent of this revenue will go directly to the government, as part of our winning bid. These funds can be used to modernize other airports, improve infrastructure and make our country even more attractive to tourists and investors.”
The government can expect to collect P900 billion in revenues during the 15-year concession period. The rehabilitation of NAIA will also generate 58,000 new jobs.
