Airport fee hike starts Nov 1

CEBU, Philippines – Starting All Saints’ Day, domestic and international passengers departing from the Mactan Cebu International Airport will be paying higher terminal fees.

In a press statement, the Mactan-Cebu International Airport Authority said that from P200, domestic Passenger Service Charge will increase to P220 and will rise to P300 by January 2016.

MCIA 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.

The MCIAA Board has approved the revision of the PSC during its regular meeting last Friday, October 10.

The board decided a staggered implementation of the PSC for domestic passengers, even as it recognizes the need to expand the runway.

The board’s decision was reached in consideration of the diverse opinions presented, both for and against the fee increase; International Civil Aviation Organization policies; and the present trend of PSC increases being adopted by neighboring countries; the conceptual difference between domestic and international PSCs, as well as the relative difference in the volume of passengers, the contractual obligations of the government with respect to the concession agreement  for the MCIA PPP Project signed last April 22; and the existing realities at the time of the decision.

“The PSC revision will help to fund new investments required to cater to growing airline and passenger traffic,” read the MCIA Board statement.

It added that the PSC increase would cover both the government’s contractual obligations to winning airport bidder GMR-Megawide Cebu Airport Corporation and MCIAA’s airside aeronautical operating costs, which have increased over the years.

GMCAC will start to operate the existing Terminal 1 on Nov. 1, and would introduce operational efficiency and improve service levels for passengers and non-passengers alike.

The new International Terminal 2 would also start next year, which will boost capacity as well as enhance MCIA’s airport levels at par with international world class standards.

MCIAA added that it shall endeavor to upgrade and modernize airfield facilities and maintain safety standards to maintain the airport’s status as having the first and the only Certificated Aerodrome in the country pursuant to Annex 14 of the International Civil Aviation Organization, and Sec. 139.050 of Administrative Order No. 139 of the Civil Aviation Authority of the Philippines.

“ With MCIA expected to serve up to 10 million passengers per annum within the next five years, the projected investments of MCIAA and GMCAC are vital to ensure that our airport maintain its high safety standards and provide a much better world class airport experience to all its users and passengers,” MCIA said, through its statement.

“It is our hope that MCIA not only evolve as a major contributor to Cebu’s tourism and business deve-lopment, but as a vital and pivotal focus of the economic development growth of the entire country,” it added.

Meanwhile, MCIAA also mentioned the need to recognize the need to expand the runway’s capacity in the future.

“While the present aircraft movement at peak hour is still less than half the single runway hourly capacity, we can’t overemphasize the fact that air transport infrastructure are bulk investments that may take years, sometimes even decades, to pursue,” it said.

Thus, and in full support of the congressional bill filed by Cebu City first district Representative Raul del Mar for the construction of a second runway, MCIAA management has already initiated the necessary project development phases to ensure its earliest possible construction.

The required pre-investment studies will start next year, with the fullest intention of realizing the completion of this huge undertaking on or before 2020.

“This will further boost Cebu’s stature as an international destination,” the statement further reads. —/RHM (FREEMAN)