Major terminal shakeup looms

The New Naia Infrastructure Corp. (NNIC), a consortium spearheaded by San Miguel Corp. (SMC), is set to significantly overhaul terminal assignments at Ninoy Aquino International Airport (NAIA).

During the Economic Journalists of the Philippines (EJAP) Aviation Forum on Monday, NNIC general manager and former Customs Commissioner Angelito Alvarez emphasized that the planned terminal realignment aims to streamline operations and enhance passenger services — ultimately boosting efficiency and customer experience.

He noted that upgraded terminals will offer better check-ins, customs, security clearances and streamlined boarding, baggage services, and deplaning — on par with leading airports across Asia.

Several consultants have been engaged already about the reassignment and this is something that will surely happen.

“The design capacity of the airport is 35 million passengers per annum, we’re expecting to hit 51 million by the end of this year. If we maintain the status quo, you can imagine the situation, so we have to do something,” Alvarez said.

Alvarez detailed the terminal reassignments: Terminal 2 (T2) will be converted into a domestic terminal, while Terminal 1 (T1) will be dedicated exclusively to Philippine Airlines (PAL).

Foreign airlines

Foreign airlines, along with Cebu Pacific (CEB) and AirAsia, will be relocated to Terminal 3 (T3). AirAsia’s shift to Terminal 4 (T4) will allow Cebu Pacific to move some of its domestic operations to T2.

He said the reconfiguration will unfold gradually over three years, contingent upon the completion of the T2 extension.

Alvarez added that AirAsia’s move to T4 will free up space for CEB at T2, which will eventually enable foreign carriers to transition from T1 to T3, making way for PAL’s exclusive use of T1.

Separately, the Air Carriers Association of the Philippines (ACAP) and the Board of Airline Representatives (BAR) have pledged their support for the NNIC.

ACAP, representing Philippine carriers such as AirAsia Philippines, CebGo, Cebu Pacific, PAL Express, and Philippine Airlines, alongside BAR, which includes 36 local and international airlines, expressed optimism about the upcoming infrastructure upgrades and their potential to enhance passenger experiences.

However, the associations cautioned that travelers may see adjustments in travel costs as new airport fees are introduced.

“We look forward to positive outcomes for all stakeholders in the course of the transition to privatized airport management and we earnestly await the holding of consultation meetings by NNIC that will clearly outline the steps to be taken for the upcoming transition on September 14,” the groups said.

New era

Meanwhile, SMC president and CEO Ramon S. Ang said NNIC is fully prepared to modernize NAIA and offer Filipinos a world-class airport.

“It’s an exciting time because we are about to make history. We can begin the work of modernizing our airport and giving the Filipino people a world-class facility they deserve,” Ang said.

He also emphasized that any potential fees outlined in the concession agreement prepared by government regulators would only take effect after one year, with the bulk of the revenue generated coming from service charges.

Full responsibility

NNIC is set to assume full responsibility for NAIA’s operations on Saturday, 14 September.

Once NAIA’s transformation is complete, the Department of Transportation (DoTr) anticipates that the airport’s capacity will increase from 35 million passengers to 62 million passengers annually.

Air traffic movements are also expected to rise from 40 per hour to 48.

The government stands to earn an estimated P900 billion in revenue over the concession agreement’s duration, while the rehabilitation will generate at least 58,000 new jobs for Filipinos.

“We have no doubt these SMC-implemented projects, once completed, will conform with the comfortable, accessible, safe, secure and affordable parameters we instituted in DoTr, that is, our transport infrastructures will provide comfortable, accessible, safe, sustainable, and affordable travel experience,” Transport Secretary Jaime Bautista said.