Senate probes MIAA terminal fee integration

MANILA, Philippines - The Senate committee on government corporations will hold an inquiry today into a move by the Manila International Airport Authority (MIAA) to integrate the terminal fee into the cost of airline tickets. 

Sen. Cynthia Villar filed Senate Resolution 1219 to pave the way for the conduct of the inquiry by the committee, which she chairs. 

The inquiry was prompted by widespread opposition by overseas Filipino workers (OFWs) to Memorandum Circular 8 issued last year by the MIAA, which integrates the P550 International Passenger Service Charge or the terminal fee into airline tickets at the point of sale.

OFWs are exempted from paying the terminal fee and since the order does not distinguish them from the other passengers, they would have to pay for the fee when they purchase tickets. 

The MIAA has stated that the OFWs would be able to refund the terminal fee at the airport by presenting their credentials.

However, the OFW groups objected to this additional step on their part, saying they should not pay the fee in the first place.

“MIAA’s collection of the IPSC without distinguishing between exempted and non-exempted persons and MIAA’s custody and use of unreimbursed IPSC payments collected from exempted persons are public interest concerns as these are alleged to be illegal, arbitrary and essentially confiscatory,” Villar said in her resolution.

“There is a need to determine if the implementation of the memorandum, as MIAA claims, will actually result in the decongestion of airport terminals and if MIAA’s possession and use of unreimbursed IPSC payments are legal,” she added. 

Twenty senators have signed a resolution strongly urging the MIAA to stop the implementation of Memorandum Circular 8.

In today’s hearing, Villar said she intends to find out if it is within the mandate of the MIAA to collect fees from OFWs and what it would do with the funds if these are not refunded.