DoTr defends proposed NAIA fee increases

The Department of Transportation (DoTr) on Tuesday defended the proposed increase in fees and charges at Ninoy Aquino International Airport (NAIA), citing the need for critical renovations and rising costs.

During a consultation meeting last 11 June 2024 with airline representatives, the agency explained that the hikes, excluding the Passenger Service Charge, are necessary to cover the substantial capital expenditure required for NAIA’s rehabilitation and expansion.

The agency also pointed to the 160 percent inflation rate over the past 24 years as a justification for the increase.

According to DoTr Undersecretary for Aviation and Airports Atty. Roberto Lim, the adjustments comply with multiple Manila International Airport Authority executive orders, joint circulars from relevant government agencies and Republic Act 9485, or the Ease of Doing Business Act.

Lim, in a letter to airline associations, stressed the urgency of major investments at NAIA to improve passenger service standards, safety, and flight capacity. He noted that airport fees haven’t been adjusted since 2000.

While acknowledging the airline industry’s post-pandemic recovery, the DoTr stressed that current passenger volume necessitates significant investments to handle increased traffic, improve operations, and enhance the passenger experience.

Lim also clarified that the projected rate hikes were included in the approved terms and conditions of the NAIA Public-Private Partnership project adding that the PSC, a significant revenue source for NAIA, is not part of the revenue-sharing scheme with the private concessionaire.

The concessionaire will receive existing airport assets and land from the government but is obligated by the agreement to make substantial upfront investments to meet technical specifications and Key Performance Indicators that benefit airlines and passengers.

DoTr also requested airline groups to provide data supporting their claim that NAIA will become the most expensive airport due to the proposed charges.

Following consultations, DoTr Secretary Jaime J. Bautista said that the fee hikes are necessary to address NAIA’s current state and ensure its long-term viability.