As the aviation industry stands on the brink of a major transformation, stakeholders are emphasizing the need to adapt to advances in artificial intelligence (AI) and digitalization. With major investments and modernization projects underway, the future of air travel in the Philippines looks promising—especially for the Ninoy Aquino International Airport (NAIA), which has long been the country’s main gateway.
NAIA has a rich history dating back to its original opening in 1937 as the Manila International Airport. Initially named after the city, it was renamed in 1987 to honor the late Senator Benigno "Ninoy" Aquino Jr. Over the decades, NAIA has undergone several expansions and renovations to accommodate the increasing number of travelers and evolving aviation standards.
However, despite these developments, NAIA has faced criticism for congestion and outdated facilities, often ranking poorly in global airport assessments. The airport has struggled to keep pace with the growing demands of both domestic and international travel, leading to frustrations among passengers and airlines alike.
At the recent 6th Philippine Airport Modernization and Expansion Summit, industry experts like Daniel Chow and Anna Rellama of consultancy firm Arthur D. Little discussed how AI could revolutionize the travel experience.
“Increasingly, air transport players can leverage AI to integrate all aspects of the travel process, providing a personalized, efficient, and enjoyable experience for every traveler. AI could act as a virtual concierge, offering information on local attractions, transportation options and be able to book accommodations and make reservations on demand,” Rellama explained.
The potential for AI to reshape the industry extends beyond passenger services. Rellama said that with the ability to monitor demand and supply continuously, airlines could adopt more flexible scheduling, adjusting flights at short notice to better align with passenger needs.
As NAIA prepares for its transformation under the New NAIA Infrastructure Corp. (NNIC), the government's commitment to modernization is evident. The recent P170.6 billion public-private partnership awarded to NNIC aims to overhaul NAIA’s aging facilities and improve passenger flow. This initiative includes investments in infrastructure, with a projected P88 billion allocated for renovations over the next six years.
The government has also set aside P7.5 billion in the 2024 national budget for airport modernization, primarily targeting NAIA. With plans to enhance the airport's capacity and meet International Civil Aviation Organization (ICAO) standards, this initiative aims to change NAIA’s current image as one of the least favorable airports in Asia.
The local government is also projecting an annual income of P36 billion following the completion of these airport upgrades, signaling a brighter future for an industry that has faced challenges in recent years. The improvements are expected not only to alleviate congestion but also to attract more tourists, thereby boosting the local economy.
In addition to NAIA, several other major aviation projects are in the pipeline, including the new Manila International Airport, the Baguio Airport Project, the Cagayancillo Airport Project, and the rehabilitation of Bohol-Panglao International Airport. These developments are expected to significantly increase the country's air traffic capacity, enhancing passenger and cargo services across the archipelago.
“Use-cases enable other actors in the airport ecosystem to increase efficiency of operations and tap into new sources of revenues,” Chow noted. For instance, Philippine Airlines is partnering with OpenAirlines to implement a fuel information management system that combines big data and AI to improve fuel efficiency—an important step toward sustainability in aviation.
With these advancements, the Philippine aviation sector is poised for growth. The combination of AI, modernization, and strategic investment could redefine the aviation experience in the Philippines, making it a competitive player on the global stage.