Airlines back bid to upgrade NAIA

MANILA, Philippines — Airline companies in the Philippines are backing a P100-billion proposal to upgrade the Ninoy Aquino International Airport (NAIA), noting that this project will raise the flight capacity of the gateway.

Philippine Airlines (PAL) spokesperson Cielo Villaluna told The STAR the flag carrier supports any effort to modernize NAIA given the benefit it will provide to passengers.

“Initiatives to upgrade airport facilities and infrastructure will always be welcome, as these will increase airport capacity, lead to more efficient airport and airline operations, and enhance overall customer experience,” she said.

PAL is expected to rally behind the Manila International Airport Consortium (MIAC), the group that submitted the unsolicited proposal to rehabilitate NAIA. Asia’s Emerging Dragon Corp., one of the members of MIAC, is headed by taipan Lucio Tan, who also owns PAL.

Apart from PAL, low-cost carrier Cebu Pacific also backs MIAC in its bid to redevelop NAIA. Cebu Pacific president and chief commercial officer Xander Lao said airport upgrades in general contribute to the growth of trade and tourism activities.

“Cebu Pacific welcomes any and all airport development within the Philippines that should make air travel more accessible and affordable,” Lao told The STAR.

“These infrastructure developments will help drive increased trade and tourism, which air travel will be a key component,” he added.

JG Summit Infrastructure Holdings Corp., a party to MIAC, is operated by the Gokongwei clan, who also run Cebu Pacific operator Cebu Air Inc.

In an interview with The STAR, AirAsia Philippines spokesman Steve Dailisan said the low-cost carrier at the outset wants the P100-billion upgrade for NAIA to materialize. The airline expects the project to bolster air transport activities in the Philippines.

“The Philippines remains to be a strategic location in Asia and the Pacific as an air transport hub. AirAsia is ready to support initiatives that would enhance airport capacity, terminal facilities and overall customer journey,” Dailisan said.

“We shall continue to monitor the developments of the proposed consortium,” he added.

Last week the MIAC filed its unsolicited proposal with the Department of Transportation (DOTr) to invest P100 billion for the rehabilitation and upgrade of NAIA.

The proposal to enhance NAIA was filed by MIAC composed of Aboitiz InfraCapital Inc.; AC Infrastructure Holdings Corp. of the Ayala Group; Asia’s Emerging Dragon Corp. of LT Group; Andrew Tan’s Alliance Global-Infracorp Development Inc.; Gotianun-led Filinvest Development Corp.; and Gokongwei-owned JG Summit Infrastructure Holdings Corp.

MIAC, which also includes New York-based Global Infrastructure Partners, wants to scale up the passenger capacity of NAIA to 62.5 million per annum. Currently, the airport is designed to hold up around 31 million guests every year.

The DOTr will create a technical working group tasked to evaluate the proposal. Transportation Secretary Jaime Bautista, however, made no assurance that the DOTr will approve MIAC’s offer.

“We have to study that. Not just because MIAC will invest P100 billion means it is a done deal. We may approve it, but we have to look at the project first,” Bautista said.

Although Bautista guarantees public-private partnerships for provincial airports will be awarded this year, he is hesitant to promise a timeline for the privatization of NAIA.

“These kinds of proposals, we welcome them, but we have to review them thoroughly so that the government can get the best benefit from them. Regional airports [will be awarded] possibly this year. For NAIA, we have to review it carefully and we should take our time,” Bautista said.