The Makabayan group, which includes ACT Teachers Party-list Rep. Antonio Tinio and Kabataan Party-list Rep. Renee Co, filed a resolution calling on the House committee on transportation of congress to investigate the privatization of Ninoy Aquino International Airport (NAIA) under its public-private partnership (PPP) with San Miguel Corporation-SAP & Company (SMC-SAP). They said that privatizing the operation of the airport is detrimental to the public.
On March 18, 2024, SMC secured the ₱170.6 billion contract for the rehabilitation, operation, and expansion of NAIA and for its turnover to the state in 2039. SMC’s contract may be extended for another 10 years, depending on how its operations proceed.
Since the airport came under the management of New NAIA Infrastructure Corporation (NNIC), a subsidiary of SMC-SAP, fees for parking and rental for spaces have increased, and other charges for landing and take-off have doubled.
On October 1, 2024, the airport raised fees for vehicle parking and rent for commercial spaces. The parking area fee for the first 24 hours rose from ₱300 to ₱1,200. Rent for spaces inside the airport increased from ₱700 per square meter to ₱3,200 per square meter which the group said led to shop closures and hundreds of job losses.
Terminal fees for domestic and international travel and various charges for airplane operations are also expected to increase, which travelers will surely shoulder. The current terminal fee is ₱200 for domestic travel and ₱550 for international travel. In September, the terminal fee will increase to ₱390 for domestic travel and ₱950 for international travel. This is based on the revised fees, dues, and charges submitted by NNIC and approved through MIAA Revised Administrative Order 1 Series of 2024.
The project will earn an estimated ₱900 billion from charging passengers and those dependent on the airport with very high fees for 25 years.
“The privatization of public assets and services, rather than improving the quality of life of Filipinos…translates to a rise in the cost of goods and services…increased airport fees will cause higher operational costs, and this will be passed on to passengers through higher ticket prices and additional hidden charges,” Makabayan explained.
Migrante International deputy secretary general Josie Pingkian said while migrants are exempt from terminal fees and travel tax, they still have to go through the process of refund and obtaining an Overseas Employment Certificate (OEC) issued by the Department of Migrant Workers. Many migrants are unable to claim or have difficulty claiming a refund. “Because the government requires the OEC to claim a refund, many migrants will still be affected by the excessive increase in terminal fees.”
“Privatization will add more burden to OFWs who return home each year. Even before they leave the country, OFWs already face numerous charges imposed by the government and recruitment agencies. From the rising cost of flight tickets to and from the provinces, to the increasing terminal fees, this will become an added burden for our OFWs and their families,” Pingkian explained.
In April, a group of lawyers filed a petition in the Supreme Court to nullify the contract for the rehabilitation of NAIA, claiming that the project violated due process and equal protection under the constitution. “The Naia PPP Project is just privatization for privatization’s sake. From inception to implementation, the Project was never designed with the common good or public welfare in mind.”
SMC also owns New Manila International Airport (NMIA), which will be built in Bulacan. Global Witness (GW) called this airport project a “disaster prone project.” It evicted 700 families without adequate compensation. The project also caused severe environmental damage. SMC is owned by Ramon Ang, one of the richest comprador bourgeois in the country, with a net worth of $3.7 billion.
