Ninoy Aquino International Airport Set for Significant Changes in 2024

Manila – The upcoming privatization of the Ninoy Aquino International Airport (NAIA), the Philippines’ main gateway, marks a significant change for the country’s aviation sector as 2023 draws to a close.

According to Philippines News Agency, Senior Assistant General Manager of the Manila International Airport Authority (MIAA), the public can expect to see a better NAIA starting next year, with improvements already underway in 2023. In an interview with the Philippine News Agency (PNA), Co revealed that upgrades to facilities, electrical systems, and air conditioners would continue before the transition to private management, scheduled for mid-2024. The MIAA has allocated PHP 5 billion for these capital expenditures.

Four consortia, including the Manila International Airport Consortium, Asian Airport Consortium, GMR Airports Consortium, and SMC SAP and Co. Consortium, have submitted bids for the PHP 170.6 billion NAIA rehabilitation project. This project aims to increase the airport’s annual passenger capacity from 32 million to 60 million and enhance various facilities like the runway, taxiway, ramp areas, and firefighting facilities.

Co emphasized the necessity of privatizing NAIA to meet international benchmarks, drawing on the success of public-private partnerships in the privatization of airports in Cebu and Clark. Under the new arrangement, the MIAA will oversee the private operator and set standards, including rate adjustments for concessionaires to recover investments.

Regarding employee options during the transition, Co stated that the MIAA’s approximately 1,200 employees could choose to transfer to the private operator, stay with the MIAA, or opt-out with a severance package. The private operator is also expected to offer attractive packages to those transferring.

Terminal rationalization has already led to more efficient airport operations, with Terminal 2 becoming an all-domestic facility under the MIAA’s initiative. Taxiway upgrades and segmented electrical maintenance have also been implemented to ensure reliable operations.

Philippine Airlines (PAL) President Stanley Ng, in a chance interview with PNA, expressed gratitude for the government’s support and initiatives to boost tourism. Ng anticipates more opportunities arising from the collaboration between the government and the private sector, foreseeing continuous digitalization and infrastructure improvements with NAIA’s privatization. He also noted the benefits of interconnectivity and the efficient cooperation of the MIAA in PAL’s terminal transfers, enhancing convenience for passengers.