Airport proponents revise unsolicited offers

MANILA, Philippines — Proponents of various provincial airport unsolicited proposals have revised their plans in consideration of the severe impact brought about by the pandemic to the aviation sector.

Transportation Undersecretary for planning Ruben Reinoso told The STAR that almost all groups who have previously given unsolicited offers to operate, maintain, and expand some of the country’s provincial air gateways have submitted revised proposals due to the   pandemic.

Reinoso said the proposals with revised economic and financial models are currently under evaluation.

No one, however, has pulled out, he pointed out, amid the challenges brought about by the pandemic to the aviation industry.

Various groups have swamped the government with their respective unsolicited proposals to operate, maintain, and expand some of the country’s provincial airports given their booming potential for traffic and tourism growth prior to the COVID-19 outbreak.

Aboitiz InfraCapital Inc. has submitted unsolicited offers for the Bohol-Panglao International Airport, Laguindingan Airport in Misamis Oriental, and Bicol International Airport.

Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp. and Udenna Infrastructure Corp. have made unsolicited proposals for the Davao International Airport, Bacolod-Silay Airport and the Busuanga Airport.

Prime Asset Ventures Inc. of the Villar group, meanwhile, submitted an offer for the Puerto Princesa Airport and Iloilo International Airport.

Other unsolicited airport proposals   were those from Mega7 Construction Corp. and the Philippine Airport Ground Support Solutions Inc. for the Kalibo International Airport and Siargao Airport in Surigao del Norte, respectively.

The International Finance Corp. (IFC) earlier said airports’ performance would continue to be affected by the lower-than-expected GDP growth around the globe after COVID-19, noting that these gateways are likely to see structural changes in demand amid the pandemic.

IFC said potential airline bankruptcies also present a major risk for airports, especially to those that serve as hubs to struggling airlines.

Aviation think tank CAPA-Centre for Aviation said that aside from airlines, airports are also suffering due to the pandemic, with some projects expected to be delayed.