In for long haul

A Lucio Tan-linked conglomerate has secured a fresh long-term lease for its sprawling 22.6-hectare maintenance, repair and overhaul complex at the country’s busiest airport, despite earlier buzz surrounding a proposed $400-million aviation hub in Clark.

The agreement with the airport’s new private operator was finalized shortly after the expiration of the original 25-year concession. Details of the new lease remain undisclosed.

The parent company, meanwhile, continues to ride the aviation rebound, posting a record P2.63 billion in first-quarter revenues driven by rising passenger traffic, stronger catering demand and increased airport activity. Ground handling operations remained a major revenue contributor.

But not all skies are clear.

Higher operating expenses and lease-related accruals tied to the previous airport deal weighed on quarterly earnings, trimming what would otherwise have been a stronger profit performance.