MANILA (UPDATE 3) -- The San Miguel-led New NAIA Infrastructure Corporation (NNIC) is ready to formally take over the operations of the Ninoy Aquino International Airport (NAIA) on Saturday, September 14.

San Miguel Chairman Ramon Ang promised improvements at the country’s main gateway which has been described as among the world’s worst.

At the Aviation Forum organized by the Economic Journalists Association of the Philippines, Ang said funding for the project has already been secured which has a capital expenditure of P123.5 billion, an upfront payment of P30 billion, and a P2 billion a year in annuities.

“Yung NAIA ayaw na ayaw kong tawagin ng mga foreigner yan na the worst airport in the world. Kaya I want to make sure na kung pwede, ako na sana [ang] magkaroon ng pagkakataon na mag-rehabilitate nitong NAIA,” said Ang.

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(I don’t want foreigners to call NAIA as worst airport in the world, which is why I want to make sure that I will be given the chance to rehabilitate NAIA.)

NNIC General Manager Angelito Alvarez said within the first 3 to 12 months, they will add new toilets, air-conditioning units and seats, as well as repair elevators and escalators, and install glass tint to minimize heat transfer. The company will also upgrade the retail experience, and have a reliable internet connection, among others.

They also plan to upgrade their IT system to improve operations and overall passenger experience. This upgrade includes the parking system, biometrics, and many more. Roads in front of the terminals are also expected to be improved as well as the drainage system.

“Yung NAIA, no excuse, I promise you in one year's time, or at most two, zero na baha diyan,’ promised Ang.

Within 4 to 5 years, Alvarez said annual passenger capacity will grow from 35 million to 62 million, while runway movements will also increase. There will also be an upgraded baggage handling system, an updated system for self check-ins, self bag-drops and biometrics. The NAIA will also be connected to the Metro Manila subway.

DEMOLITION OF 'HISTORIC' HOTEL

NAIA Terminal 2 will be expanded to build a new building on the lot of the Philippine Village Hotel. The Department of Transportation is working to exempt the hotel building from the National Historical Commission of the Philippines’ policy that over 50-year-old buildings should be preserved.

“Yung Philippine Village Hotel matagal na problema yan. It has been there. It’s an eyesore. We’ll get the exemption because this is a priority project of the government. Siguro maIintindihan ng National Historical Commission,” said Transportation Secretary Jaime Bautista.

(The Philippine Village Hotel has been a problem for us. It’s an eyesore. We’ll get an exemption because NAIA is a priority project of the government. I think the National Historical Commission of the Philippines will understand.)

Another proposal to decongest NAIA is to transfer all turboprop flights to Clark International Airport and to reassign terminals for airlines. Alvarez said moving some flights to Clark can help NAIA accommodate more foreign airlines with bigger aircraft.

“Even if there are about 23 foreign airlines applying for new slots, we just can’t accommodate them. Part of the plans is the possible movement transfer of the turboprop operations to Clark, with that some slots can be opened up,” said Alvarez.

Officials said there won’t be significant changes on the first few weeks of the new management, but they promised that passengers will feel the improvements soon.

TERMINAL REASSIGNMENT

Ang also said that they plan to reassign terminals to decongest the airport. 

In the near term, NNIC plans to have these terminal assignments:

T1 - PAL international flights

T2 - PAL, Cebu Pacific domestic flights

T3 - All other international flights

T4 - AirAsia domestic flights

NNIC however did not specify when it expects to implement these changes.

For the long term, these will be the terminal assignments:

T1 - PAL exclusive

T2 - Cebu Pacific and AirAsia domestic flights

T3 - All other international flights

However, these plans may still change subject to consultations as there is still no "final plan."

Alvarez said these are all plans and will take several years to complete as they are also awaiting the construction of the NAIA 2 extension at the site of the Philippine Village Hotel. Local airlines said they are OK with the new plans as long as they are consulted and given enough time to implement such a move.

AirAsia Philippines CEO Ricky Isla said they hope to discuss with NNIC the improvements expected at Terminal 4. 

"Number one, space is very important," Isla said.

Cebu Pacific President Xander Lao said consultation is needed "whenever there are terminal transfers," especially as airlines are now preparing for the Christmas rush. 

"Actually for all of us here, the busiest time of the year is really Christmas. As long there is a lot of consultation, there’s enough room and time for the airlines to plan,” Lao said.

Philippine Airlines President Stanley Ng said they need to identify the pros and cons of transferring to a terminal. 

"If there will be cons that can be addressed, we can work it out together. And reasonable timeline of transfer,” Ng said.

HIGHER FEES

Meanwhile, the Air Carriers Association of the Philippines (ACAP) and the Board of Airline Representatives (BAR) also called for dialogue with the new NAIA management. They said they support the new NAIA operator and the plans to improve the airport, but they also seek consultations especially as airport fees may soon be hiked, which will affect travel costs for passengers. ACAP is composed of the major carriers in the Philippines, while BAR is composed of 36 local and foreign airlines.

“We are eager to engage with NNIC and the government to address the potential adverse effects on travel demand and to ensure that the interest of both airlines and passengers are represented,” said ACAP and BAR in a joint statement.

The terminal fee at NAIA is expected to go up next year, while other airport fees like landing fees and take-off fees will also be implemented soon. NNIC has said that the government has approved the terminal fee hike long before the bidding of the NAIA modernization program.

Bautista, meanwhile,  said he has high expectations for NAIA and other San Miguel-led infrastructure projects.

“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,” Bautista said.

WHAT ABOUT THE BULACAN AIRPORT?

Meanwhile, Ang assured the public that despite delays, the New Manila Airport in Bulakan, Bulacan is pushing through as he highlighted the significance of the said project to the economy of the provinces in the North.

"Yung Bulacan airport, hindi pwedeng hindi gawin yun kasi yun ang pag-asa ng Pilipinas para umunlad ang bayan. Pag tumakbo ang Bulacan airport, you will open up Central Luzon," he said.

(We cannot 'not' open up Bulacan airport because that is the Philippines' hope for national progress. Once Bulacan airport is up and running, you will open up Central Luzon.)

SMC earlier disclosed that the airport project is facing delays due to the lack of sand being used as a backfill. Ang said the government is helping them address the issue.

Once opened, the Bulacan airport is seen to boost economic growth in nearby provinces such as Bulacan, Pampanga, Tarlac and Nueva Ecija, Ang said.

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