DoTr: Airport fee hike necessary

Travelers using the Ninoy Aquino International Airport (NAIA) should anticipate paying increased airport fees before the end of the year, a move that the Department of Transportation (DoTr) said will help secure the necessary resources for the P170.6-billion air hub modernization.

At a press briefing on Friday, Transportation Secretary Jaime J. Bautista said the proposed hikes in takeoff and landing fees will be finalized and approved by a seven-member committee to ensure that any price movement will be fair to passengers.

The committee will comprise the Departments of Transportation, Finance, Trade and Industry, and Energy along with the National Economic and Development Authority and the Housing and Urban Development Coordinating Council.

“The (increase) in airport fees will be before the end of the year. This will be subject to approval by the cabinet that the president created but the amount is not final yet,” Bautista said.

Currently, terminal fees at NAIA stand at P200 for domestic travelers and P550 for international travelers.

No increase since 2000

Since the year 2000, the NAIA airport fee has remained constant, according to Bautista.

“We have the lowest airport fees compared with other airports in other countries. It is about time because we need to implement reforms and modernize the airport,” Bautista said.

“Landing and takeoff fees are not a major expense of the airline, it is not a big percentage of the cost of operations,” he added.

Meanwhile, the looming passenger service charge or terminal fee increase to P950 will take effect next year. It will be added to the airline ticket that passengers will pay.

Bautista said that implementing the new rates, as stipulated in the concession agreement between the government and the San Miguel Corp.-led New Naia Infrastructure Corp., should proceed as scheduled.

New NAIA Infrastructure will operate, maintain, and rehabilitate NAIA. Depending on its performance, it has an option to extend the 15-year deal for another 10 years.

The consortium will rehabilitate and upgrade the passenger terminals, commercial assets, and surface access facilities, and modernize the communications, navigation, and surveillance systems of the airport.

Once these are realized, the overall passenger experience in the NAIA is expected to improve, while the annual passenger capacity of NAIA is likely to expand by at least 62 million from the current 32 million.