Stakeholders optimistic on NAIA rehab

Ninoy Aquino International Airport's (NAIA) stakeholders are highly optimistic about San Miguel Corp.'s (SMC) potential to enhance the airport experience.

To improve the condition of NAIA, which is known as one of the most poorly rated airports globally, the government plans to enter into a concession agreement with SMC.

The San Miguel Group has been awarded a contract worth P171 billion to rehabilitate, run, and manage the country's premier gateway.

NAIA recently faced criticisms for various issues such as infestations, lost luggage, thefts, extortion, brownouts, and technical problems.

One of the ground handling firms at NAIA, dnata Philippines, welcomed the announcement and expressed its enthusiasm about what SMC can bring to the airport.

“We are excited to see what SMC can bring. As for me, I’ve been here since 1991. This is an exciting time; we will see something good for the Filipino people, especially the traveling people who, at the end of the day, will be the ones who will benefit,” dnata PH Managing Director Margaret Yu said during a forum organized by the Airport Press Club (APC) held at NAIA Terminal 1.

Yu added that they are looking forward to seeing something that is good for the Filipino people and the traveling public.

dnata PH acknowledged that there are areas at the airport that require improvement. It was mentioned that the limited capacity and space are concerning when it comes to ground handling work.

However, Yu also stated that they will continue to ensure that their clients are happy and will wait for whatever directions the SMC has. There are things that need to be changed and improved.

A positive impact of a modern airport is a comfortable and smooth experience for all passengers.

But she acknowledged that there are always costs involved. “Of course, the riding public is mature; the companies working at the airport are mature enough to handle any improvements, but there are still potential costs.”

The Department of Transportation (DOTr) is expected to sign the concession agreement on Monday, 18 March, in Malacañang, and the airport facility is expected to be turned over to SMC in September this year.

The highest bid of 82.16 percent revenue share was made to the government by the SMC SAP Company Consortium, which consists of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp. The winning bidder will pay P30 billion as an upfront payment and P2 billion as an annual annuity to the government.

The concessionaire will be responsible for both landside and airside operations of the NAIA, enhancing compliance, safety, security, and capacity to cater to increasing air traffic.

This means modernizing the terminals, optimizing and enhancing the capacity of the airport to 62 million passengers a year, enhancing asset quality and passenger experience, improving the information and technology systems infrastructure, and ensuring reliable operations throughout the concession.

In accordance with the goal parameters specified in the concession agreement, the concessionaire will also have to carry out improvements to the airport's compliance, safety, and security, as well as optimize and increase airport capacity to accommodate the growing volume of air traffic.