Naia transformation gets off the ground

Today marks another historic day at Ninoy Aquino International Airport (Naia)—and it is three decades in the making.

The privatization of the operations and maintenance of the country’s main gateway has finally started following the takeover today of New Naia Infrastructure Corp. (NNIC), the chosen private concessionaire by the government to do the herculean task of modernizing and expanding the decongested airport.

NNIC, a consortium led by San Miguel Corp. (SMC), is set to increase the annual terminal capacity from 35 million passengers to 62 million within four to five years of its concession period.

READ: Naia changes coming; Sept. 14 takeover set

Within the first three to 12 months of the San Miguel group’s takeover, it will install new toilets and refurbish existing comfort rooms; place additional seating capacity; install more air-conditioning units; and enable reliable high-speed internet.

Other plans in the short term include improved retail and food and beverage experience; power redundancy; repair of existing walkalators, escalators and elevators; upgrading of X-ray machines; and road expansion to terminal.

The consortium will also upgrade the baggage handling system, place updated self check-in and self bag-drop counters and double the capacity of car parking.

READ: BIZ BUZZ: Who doesn’t want a new and improved Naia?

Along with these, the group also intends to gradually implement terminal reassignment in order to improve the efficiency of runway use, allowing the airport to accommodate more flights.

“It is an exciting time because we are about to make history. We can begin the work of modernizing our airport and giving Filipino people the world-class facility they deserve,” SMC chair Ramon Ang said earlier this week.

“We know this is a big responsibility and there will be challenges. But we are committed to delivering on our promise,” he added.

Airport fees

Based on the Manila International Airport Authority Revised Administrative Order 1 Series of 2024, the passenger service charge will increase during the second year of NNIC’s takeover.

The said fee will increase from P550 to P990 for international departing passengers and from P200 to P390 for domestic departing passengers.

According to the order, which was approved on Sept. 4 during a special cabinet meeting, the passenger fees will be adjusted again in the sixth and 11th year of the 15-year concession period.

If it is extended by another 10 years, adjustments on the fees will be done again on the 16th and 21st year of the concession period.

READ: DOTR: No stopping hikes in Naia fees, charges

The NNIC has received criticisms for the planned airport fee hike but Ang clarified it was “determined by the government, together with Asian Development Bank, and benchmarked against global standards.”

“Let me also highlight that 82.1 percent of this revenue will go directly to the government, as part of our winning bid. These funds can be used to modernize other airports, improve infrastructure and make our country even more attractive to tourists and investors,” he explained.

On Feb. 16, the Department of Transportation (DOTr) announced the conclusion of the P170.6-billion Naia rehabilitation project bidding with the SMC group as the winning proponent.

It was 30 years in the making as the idea of upgrading the country’s main gateway was first attempted during the Ramos administration.