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Manila Bulletin devider Business devider Trade & Industry devider PPPs key to unlocking full potential of ASEAN aviation

PPPs key to unlocking full potential of ASEAN aviation

Published Aug 7, 2025 11:59 am
As air travel continues to soar in Southeast Asia, public-private partnerships (PPPs) are expected to bolster the region’s aviation sector to meet the growing demand sustainably, according to the Tokyo-based think tank Asian Development Bank Institute (ADBI).
In a policy brief, ADBI said that the 10-member Association of Southeast Asian Nations (ASEAN) is experiencing one of the fastest growth rates in the aviation sector worldwide.
The region’s unique geography—combined with rising incomes, population growth, and an expanding middle class—is expected to propel air travel demand to unprecedented heights.
As the backbone of the region’s connectivity, ADBI noted that the aviation sector will be essential for stronger economic integration and development.
ADBI, however, explained that the growing demand for air travel would lead to an increase in environmental challenges such as higher carbon emissions, greater resource consumption, land-use issues, and even noise pollution.
“These issues pressure both governments and aviation industry players to adopt sustainable aviation solutions, including cleaner fuels, energy-efficient aircraft, and optimized flight operations,” it said.
ADBI said governments of ASEAN could leverage PPPs as a primary strategy to address the growing demand for air travel, while ensuring that the environment is given high priority.
The think tank noted that PPPs allow governments and the private sector to share risks, pool expertise, and co-invest in long-term airport infrastructure and innovation.
“By aligning public policy goals with private sector capabilities and incentives, PPPs can accelerate the transition toward a greener aviation future,” the report read.
ADBI recommended the establishment of a dedicated PPP framework for sustainable aviation, which shall define clear regulatory guidelines, identify priority areas for sustainable investment, and facilitate joint financing mechanisms.
It also put forward the benefits in offering financial incentives for sustainable aviation initiatives to attract investors from the private sector.
“These tax breaks, low-interest loans, and grants can help airlines, airports, and technology providers scale up projects that reduce emissions and environmental impact,” it said.
ADBI said ASEAN members could also look into expanding research and development in sustainable aviation technologies, as well as harnessing regional collaboration and knowledge exchange, through joint investments with private firms.
“PPPs are not only tools for financing infrastructure, but they are also strategic approaches to aligning interests, accelerating innovation, and building a shared vision for sustainable aviation in Southeast Asia,” the think tank said.
“By taking a proactive role in establishing enabling policies, offering smart incentives, and championing collaboration, ASEAN governments can position the region as a global leader in green aviation and future-ready connectivity,” it added.
In the case of the Philippines, PPPs have been the main thrust of the Department of Transportation (DOTr) to upgrade and modernize regional airports to improve tourism.
Earlier this week, Transportation Secretary Vince Dizon said the agency received a bundled unsolicited proposal for the airports in Bicol, Davao, and Siargao from a consortium led by JG Summit Infrastructure Holdings Corp. and Filinvest Infra-Solutions Ventures Inc.
The proposal seeks to upgrade and expand Southern Luzon International Airport in Albay, Francisco Bangoy International Airport in Davao, and Sayak Airport in Siargao.
Dizon earlier said that the government will privatize at least ten more regional airports by 2028 or the end of President Marcos’ term.
Currently, there are seven airports operated by the private sector.
San Miguel Corp. operates the country’s main gateway Ninoy Aquino International Airport, Godofredo P. Ramos Airport in Caticlan, and the under-construction New Manila International Airport in Bulacan.
Meanwhile, the Laguindingan International Airport, New Bohol-Panglao International Airport, and Mactan-Cebu International Airport are under the umbrella of Aboitiz InfraCapital Inc.
Clark International Airport, an emerging gateway north of Manila, is operated by Luzon International Premiere Airport Development Corp.

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Asian Development Bank Institute (ADBI) Aviation Public Private Partnership (PPP)
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