Seven of the country’s biggest conglomerates made a pact to create a super consortium that will bid to rehabilitate, operate and maintain the outdated and highly-congested Ninoy Aquino International Airport (Naia), currently the country’s main international gateway.
Aboitiz InfraCapital Inc., the Ayalas’ AC Infrastructure Holdings Corp., Andrew Tan-led Alliance Global Group Inc., Lucio Tan-led Asia’s Emerging Dragon Corp., Gotianun-led Filinvest Development Corp., Gokongwei-led JG Summit Holdings Inc. and Metro Pacific Investments Corp. have agreed to form the Naia consortium that will submit to the Department of Transportation an unsolicited proposal to modernize Naia.
“I think the formation of a super consortium sends an urgent message to the government that the issue of capacity in Naia is approaching a critical juncture and needs to be addressed soon. The move of these conglomerates to [come] together for a naturally divisive asset implies they have agreed that the needs of the many outweigh the needs of the few,” said Jose Mari Lacson, head of research at fund manager ATR Asset Management.
Given proper upgrades and strategic improvements, the super consortium said Naia could easily accommodate additional 11 million passengers yearly from the current 39.5 million passengers, and increase its hourly aircraft movements—referring to landing and take-off—from 40 to 48 per hour.
The super consortium believes Naia “will continue to be a strategic gateway for our country and a key hub of airline operations for many more years,” according to separate disclosures to the Philippine Stock Exchange filed by JG Summit, Ayala Corp., Aboitiz Equity Ventures and Alliance Global yesterday.
The consortium plans to work with foreign technical partners with “proven world-class track records and experiences in airport operations to improve, upgrade and enhance the operational efficiencies of Naia covering both landside and airside facilities,” they said.
A number of foreign and local experts have highlighted the advantage of keeping an airport within city limits. Experts recommend an in-city airport, just like in other major cities in the world, and another one outside the metropolis to complement it, the group said. Megacities that benefit from a two-airport setup include Tokyo (Haneda and Narita) and London (Gatwick and Heathrow).
“The unsolicited proposal is intended to help accelerate the government’s ‘Build, Build, Build’ program. Augmenting Naia’s capacity is the quickest way to address airport congestion while other airports are being developed outside Metro Manila. The consortium believes this approach promotes greater economic benefit and sustainability for the whole country,” the group said.
The terms of the memorandum of understanding or framework of the consortium are still under negotiation, the Ayala group said.
If this consortium gets an original proponent status to rehabilitate Naia, the project will still be subjected to a price challenge.
The country’s largest conglomerate, the Sy family’s SM group, is not part of the super-consortium as it is backing a separate proposal to build a brand-new airport at Sangley Point in Cavite.
San Miguel Corp., on the other hand, earlier obtained an original proponent status to develop a brand-new airport in Bulacan.