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NAIA fee hikes not arbitrary, allowed by concession terms, operator says

REUTERS

PLANS to raise the passenger service charge (PSC) at the Ninoy Aquino International Airport (NAIA) are within the parameters of the concession agreement, the airport operator said on Wednesday.

In a statement, New NAIA Infra Corp. (NNIC) said the PSC adjustment is not arbitrary but follows the agreed schedule when the concession was awarded.

The Department of Transportation (DoTr), Manila International Airport Authority (MIAA) and its project transaction advisor Asian Development Bank had outlined the financial terms the concession holder will operate under when the NAIA public-private partnership (PPP) was auctioned.

“Any winning bidder would have implemented the same schedule,” it said.

PSCs, also known as terminal fees, are imposed on departing passengers. Currently, domestic travelers pay P200, while foreign travelers pay P550. These fees will rise to P390 and P950, respectively, starting next month.

NNIC said overseas Filipino workers are exempt from the terminal fee adjustment.

Last year, the NNIC, formerly the SMC SAP & Co. Consortium, signed a P170.6-billion contract to operate, maintain, and upgrade the country’s primary gateway for 25 years.

The NNIC plans to construct a new passenger terminal building with a capacity of 35 million passengers annually to alleviate airport congestion.

The government hopes to earn P900 billion from the project, equivalent to P36 billion per year. This projection compares with the P1.17 billion average annually remitted by the MIAA over the 13 years ending 2023, according to the DoTr.

“On privatization, NNIC said the turnover of NAIA’s operation was the result of a competitive and transparent bidding process, with safeguards to protect the public interest. The PPP model was pursued by the government precisely to ensure the needed funds, expertise, and technology are brought in to modernize the country’s primary airport without burdening taxpayers,” NNIC said. — Ashley Erika O. Jose

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