MCIA denies request to shelve passenger service charge hike

CEBU, Philippines - The Mactan-Cebu International Airport Authority has shut down the request of the Cebu City Council to put on hold the passenger service charge hike on Nov.1.

“It is impossible to defer the approval because it’s part of the concession agreement with GMR-Megawide Cebu Airport Corporation (GMCAC) on April 22,” said MCIAA general manager Nigel Paul Villarete.

Villarete said the MCIAA board approved the increase in terminal fee to help fund the expansion and cover the increasing operating costs as well as comply with the 25-year concession agreement between MCIAA and private airport operator GMCAC.

Villarete, who was invited in a public hearing yesterday, said the increase is “inevitable” in any aviation company in the world.                    The board, though, heeded the request of the council to implement the fees in tranche.

Starting Nov.1, domestic passengers leaving the Mactan-Cebu International Airport will pay P20 as PSC on top of the P200 current charge. However, P80 will be added starting January 1, 2016.

The MCIAA said the international PSC will also increase from P550 to P750, while the national government fee of P100 imposed under Presidential Decree 1957 and the aviation security fee of P60 remain unchanged and are already integrated into the P750 IPSC.

Of the P750 charge for international passengers, P181 or less than 25 percent will go to GMR-Megawide and the bulk will go to MCIAA, aviation security, the Civil Aviation Authority of the Philippines and the airline companies that collect the PSC by integrating it in the airline ticket’s price.

The City Council, meanwhile, is questioning the propriety of increasing the PSC albeit the renovation of the airport has yet to commence.

Councilor Sisinio Andales asserted that it seems unreasonable to inflict increase by 50% for domestic flight passengers and 36% for international flight passengers considering that the rehabilitation of the airport has yet to start.

Villarete pointed out that they have to increase the PSC owing to the concession agreement with GMCAC and aviation international agreement.

With the influx of travelers everyday, the facility has to be upgraded to meet the capacity requirements, but the increase has to be shouldered by the passengers, he said.

He said MCIAA has increased its fees from 1994 to1995, noting that almost all airports increase fees every three to five years.

Apart from the GMCAC contract, MCIAA is also signatory to the Chicago Convention agreement in 1946 that governs the operations of aviation all over the world.

The agreement provides that all infrastructure, services and operations of the civil aviation must be charged to the passengers.

To be just, Councilor Gerardo Carillo said the services of the airport have to be upgraded also simultaneous with the implementation of the increase.

“If fees will be increased, services as well have to be enhanced and boost. I resent the idea nga mag-increase because of signed agreements,” he said.

Villarete assured that some of the changes and improvement in the facility particularly the services offered will take effect next month. Some of the upgraded services, though, would be seen three to six months from the time of the increase. — (FREEMAN)