Entry of another consortium at NAIA-3 costly for airlines, passengers — AEDC

It might become more costly for airline companies and travelers if the government awards the management of the new Ninoy Aquino International Airport Terminal 3 (NAIA-3) to a Chinese consortium eyeing the facility.

Lawyer Perfecto Yasay, who is representing the Lucio Tan-led Asia’s Emerging Dragon Corp. (AEDC), said the Chinese consortium HNA Airport Group Co. Ltd. and Ipay Ltd. would have to pay compensation sought by Philippine International Air Terminals Co. Inc. (Piatco), which built the terminal.

Piatco is seeking at least $600 million in compensation for the government’s seizure of the terminal.

Yasay believes this is three times the actual price of the terminal.

"Awarding it to another party would mean it would triple the cost that is to be paid to the government. If they paid triple to the government, the assumption is simple, they would triple the rates (of fees at NAIA-3) as well," Yasay said.

"This would translate to high rental fees on the part of the new player. Naturally, to recover their costs, they have to implement a price higher by threefold," he said.

Airlines would pass on the cost to travelers, eventually resulting in higher airfares, Yasay said.

HNA recently firmed up its offer to acquire and operate the terminal. HNA officials reportedly toured the terminal last September.

HNA has interests in air transportation, airport management, hotels, tourism and other related businesses.

AEDC claims it has the legal right to operate the terminal when the Supreme Court in 2003 nullified Piatco’s government contract to build and operate the terminal.

The company recently asked the Supreme Court to stop the government from entering into any contract with Piatco.

AEDC made a proposal to build the terminal in 1994 following a government invitation and was awarded the contract in 1996.

However, AEDC lost the contract to Piatco when the consortium made a better offer. AEDC argued that it now has the legal right over the terminal when Piatco’s contract was nullified by the court for anomalies.

"Pending due consideration of the above-captioned petitioner and there being no other plain, speedy and adequate remedy in the ordinary course of law, petitioner AEDC is entitled, as a matter of extreme urgency, to the issuance of a temporary restraining order restraining or enjoining respondents from negotiating, re-bidding, awarding or otherwise entering into any concession with Piatco and other third parties" for the operation of the terminal, the company stated in its petition.

AEDC said the government, represented by the Department of Transportation and Communications and the Manila International Airport Authority, "do not have authority to take over the NAIA-3 to the exclusion of the AEDC or to award the project to third parties."