Foreign airlines eye terminal fees at NAIA amid rising costs
International airlines are expected to submit proposals to collect terminal enhancement fees, aiming to shoulder the rising costs of using the Ninoy Aquino International Airport (NAIA), according to the Civil Aeronautics Board (CAB).
CAB Executive Director Carmelo Arcilla said these foreign-headquartered carriers have indicated to the agency their eagerness to file their respective petitions.
Arcilla said these airlines, which are represented by the Airline Operators Council (AOC) and the Board of Airline Representatives (BAR), are monitoring the outcome of the proposals earlier filed by local carriers.
“They are waiting. They are in the wings just waiting for what will happen with the local [airlines],” he said in a chance interview.
Last year, Philippine Airlines, Cebu Pacific, and AirAsia Philippines pushed for the approval of the terminal enhancement fees amid higher expenses at the country’s main gateway.
NAIA, which was taken over by San Miguel Corp.-led consortium New NAIA Infra Corp. (NNIC), has since seen increases in landing and takeoff fees, alongside other fees.
The three airlines sought a terminal enhancement fee for a domestic flight for ₱75 and as much as ₱300 for an international flight.
Arcilla said the proposal remains pending as CAB awaits the local carriers’ final submission of required documents.
He said the agency, which oversees the economic aspects of the aviation sector, has no timeline yet on the final decision over the matter.
If approved, the fee is expected to be listed as a separate charge on top of the base fare, similar to the fuel surcharge, value-added tax (VAT), and passenger service charge (PSC).
NNIC, which took over operations and maintenance of NAIA in September 2024, is scheduled to implement a higher PSC for its first anniversary this year.
Administrative Order No. 1, penned by NAIA’s regulator Manila International Airport Authority (MIAA), stated that the PSC will increase from ₱550 to ₱950 for international departing passengers and from ₱200 to ₱390 for domestic departing passengers.
The fee will be adjusted again in the sixth and 11th year of the 15-year concession period.
With the contract’s potential extension, the PSC will face another hike in the 16th and 21st year.