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Manila Bulletin devider Business devider Passengers may see higher NAIA fees as airlines pass costs

Passengers may see higher NAIA fees as airlines pass costs

Published Oct 2, 2024 07:52 am

Both the airlines and its passengers may bear the brunt of higher fees for the use of properties and facilities of the Ninoy Aquino International Airport (NAIA), Transportation Secretary Jaime Bautista said on Wednesday, Oct. 2.

On the sidelines of the 2024 Aviation Forum, Bautista said that should there be pass-on fees, “the airlines can absorb part of it, and pass one to the passenger.”

Based on the approved Administrative Order (AO), international flights with a maximum takeoff weight of 50,000 kilograms (kg) will see a higher takeoff and landing fee of $794, while those with a maximum takeoff weight of 100,000 kg and above will expect to pay as much as $1,794.

Meanwhile, domestic flight charges will increase to P15,417 in the first year, while those with a maximum takeoff weight of 100,000 kg and above will pay P34,617.

Charges will also increase every five years until the 20th year of NAIA’s private operations.

Likewise, the special handling fee will rise to P220,000 at the start of privatization and will be adjusted every five years until it reaches P351,384 in the 20th year.

The Passenger Service Charge will also be increased to P950 from P550 for international passengers and P390 for domestic travelers from P200.

Bautista said that higher charges do not seem to dampen tourist arrivals but will help generate more revenues for modernizing the long-ailing airport.

“There are countries that are collecting higher than the new rates. And I think the reason for this is for us to be able to generate revenue, especially the concessionaire—for them to be able to finance the infrastructure requirements to modernize the airport,” he said.

“There's so much things to see, experience in the country. And for a small amount of increase in the cost, I think it will not affect the tourist arrival,” he added. “Passengers won't mind paying a little bit more than what they are paying now if you have a very good airport experience.”

Bautista emphasized that the last time NAIA revised its fees was some 24 years ago.

When asked whether a gradual increase has been considered, Bautista said that the department remains open to dialogues with relevant stakeholders in case it needed to be discussed.

“The AO is part of the concession agreement. But, as I mentioned earlier, we can review it,” he said.

Laguindingan O&M set for private turnover soon

Meanwhile, the DOTr is set to sign the concession agreement with Aboitiz InfraCapital Inc. for the O&M of Laguindingan airport within the month.

“Yes, we are planning to sign the concession agreement for the Laguindingan airport within the month. And [perhaps] it will take us four to six months before we will be able to officially turn it over,” he said.

Aboitiz InfraCapital bagged the O&M and expansion of the Laguindingan Airport in Misamis Oriental for P12.75 billion after failing to receive challenging offers.

According to the PPP Center, the contract for the Laguindingan Airport will run for a period of 35 years.

The airport will have a capacity of 1.6 million passengers a year, which will increase to 3.9 million by the end of the first phase and to 6.1 million by the end of the second phase.

Related Tags

DOTr secretary Department of Transportation (DOTr) JAIME BAUSTISTA New NAIA Infrastructure Corporation NAIA higher fees
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