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Slashing Fees at NAIA Subject to Amending AO

Manila: Providing discounts at the Ninoy Aquino International Airport (NAIA) will require amending Administrative Order (AO) 1 Series of 2024, the head of regulator Manila International Airport Authority (MIAA) said Tuesday. The government has been looking for ways to help the industry cope with the impact of the Middle East situation.

According to Philippines News Agency, the landing and takeoff fees in all airports operated by the Civil Aviation Authority of the Philippines will be discounted by up to PHP5,000 starting April 1, to help airlines cushion the impact of rising jet fuel costs. That is not the case, however, for private-operated airports like the NAIA.

"In order for us to provide discounts, we have to consult the NNIC (New NAIA Infra Corp.) first. Suggestions will be relayed to the Transportation chief, and all these will require the approval of the Economic Cluster of the Cabinet and the President," MIAA General Manager Eric Ines told the Philippine News Agency in an interview.

"We have a concession agreement with the private operator, NNIC. The AO includes the regulated and non-regulated fees, and we cannot change these without amending the AO," he explained.

Among the regulated fees are the landing, takeoff and airline parking fees, while non-regulated fees include the office space rent, check-in counters, among others.

Ines said he has met with some airline representatives on Monday but 'are yet to discuss the figures' for any rate adjustment given the issue on the AO. He also noted that local carriers Philippine Airlines, AirAsia Philippines and Cebu Pacific have been benefiting from a 65 percent discount in domestic takeoff and landing fees for several years now. Any possible additional discount would depend on amending the AO.

Sec. 4.1.2 of the said AO mandates that any revision on fees and charges 'that is not based on the principles of adjustments as set out in this AO will be subject to the Administrative Process.'

Meanwhile, Ines could not say if a reduction in terminal fee is also possible, since for every PHP950 terminal fee for international flights, PHP100 goes to the National Treasury while PHP60 goes for security/screening.