Upgrade NAIA services first

A public outcry greeted the announcement of higher fees at the Ninoy Aquino International Airport (NAIA) following the takeover by the new operator.

The New NAIA Infra Corp. (NNIC), a consortium backed by conglomerate San Miguel Corp. and South Korea’s Incheon International Airport Corp., denied responsibility for the fee increases, which are set to take effect late next year.

NNIC attributed the higher fees to the government, which it said had predetermined the rates. The company defended the near doubling of airport fees, saying passengers would benefit from an improved overall experience.

Another reason given was that low fees had led to issues such as the abuse of pay parking due to cheap rates.

“Many have speculated on the fee adjustments at NAIA,” NNIC said in a statement on social media. “NNIC did not initiate the increase in fees, as these were predetermined by the government.”

By next year, the terminal fee for domestic flights will rise to P390 from P200, and for international travel, it will increase to P950 from P550. Overseas Filipino workers will continue to be exempt from international departure fees. The biggest impact on travelers, however, will be the increased aeronautical charges to airlines, likely resulting in higher airfares.

Aviation officials faced backlash from airline operators, explaining that NAIA’s fees had not changed since 2000. The Manila International Airport Authority argued that the proposed aeronautical charges “are lower than the cumulative inflation from 2000 to the present,” except for landing and takeoff fees, which now include costs for lightning fees, noise and emission charges, and the modernization of air traffic control equipment to optimize runway capacity.

Under the concession deal with the government, NNIC took over NAIA’s operation and maintenance on 14 September. The consortium committed to investing P170.6 billion to rehabilitate and upgrade NAIA and offered the government an 82.16 percent share of revenues. The government’s management of NAIA has long faced criticism, with the airport frequently ranked among the world’s worst.

Civic groups criticized the proposed fee hike, initially set for implementation this month but postponed to next year. An air passenger advocacy group called the rate increases a “cash grab,” saying they would take effect before any improvements in services could be felt.

Parking fees will increase to P50 from P40 for the first two hours, while overnight parking will cost P1,200. The consortium is also considering charges for pick-ups and drop-offs that exceed a set time limit.

NNIC said the new fees aim to discourage abuse of the low parking rates, which have contributed to congestion and frustration among airport users.

Preferential treatment at immigration and other services that previously cost P800 will now be P8,000 per person. A consumer group claimed the higher rates were not addressed during the House hearing on NAIA privatization, calling the move “treacherous.”

“It is concerning that this issue was not resolved, yet the changes were made without consideration or consultation with stakeholders,” the group said. “A compromise would be a significant step toward regaining the public’s trust and demonstrating that the welfare of the public is central to San Miguel Corporation’s mission as a partner in nation-building.”

Since NNIC maintains it did not initiate the fee increases, it could consider a rollback and make adjustments after implementing promised changes and reforms. This approach could help the new operator build goodwill with airport stakeholders.