New airport rates under SMC set Sept.

Airport fees are expected to increase before September based on the draft administrative order (AO) of the Department of Transportation (DoTr) that will pave the way for the takeover of the contractor.

In an interview, Transportation Undersecretary Timothy John R. Batan said government regulators would aim to release the AO before transferring the Ninoy Aquino International Airport (NAIA) operations and maintenance (O&M) to a private concessionaire on 14 September.

“(The AO) is still undergoing review by our regulators… A lot is going on now because there’s a checklist for any PPP (Public-Private Partnership). There are conditions precedent to the handover,” Batan said.

“We’re progressing. We’re on track. We have a project steering group every month starting in March,” he added.

New rates under concession deal

According to DoTR, the implementation of the new rates is stipulated in the concession agreement between the government and San Miguel Corp.-led New Naia Infrastructure Corp.

Transportation Secretary Jaime J. Bautista earlier said that the fee adjustments are necessary to help the consortium fund the much-needed rehabilitation of the country’s main air hub.

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.

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

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

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.

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.