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By Ashley Erika O. Jose, Reporter
THE Philippines is poised to spice up its aviation sector by upgrading the Ninoy Aquino International Airport (NAIA) and other key airports, but this may only achieve success if critical infrastructure projects are developed at the identical time, in keeping with analysts.
Greater than three months ago, the private operator of NAIA, the San Miguel-led Recent NAIA Infra Corp. (NNIC), took over the operations and maintenance of the country’s major gateway.
The federal government is banking on the multibillion-peso redevelopment of the airport, which has faced criticisms, to assist boost the country’s economy by increasing flight capacities and improving services.
Ramon S. Ang-led San Miguel Corp. (SMC) can also be the corporate behind the event of the P740-billion Bulacan International Airport, or the Recent Manila International Airport (NMIA), which is anticipated to see development work this 12 months and to be operational by 2028.
This 12 months alone, the Philippines witnessed its aviation projects take off with the recent approval of the three way partnership between the Cavite provincial government and the Sangley Point International Airport (SPIA) consortium — making three airport development projects inside Greater Manila — casting doubts on the airports’ operational viability.
CONSOLIDATION
Versus competing the operations of the 2 airports — the Bulacan International Airport with NAIA — Roderick M. Danao, chairman and senior partner of PwC Philippines, said it is probably going that the operations of the 2 airports might be consolidated because the airports are being operated by SMC.
If the present developer of Bulacan won’t give you the chance to regulate NAIA, then they might be competing against one another, Mr. Danao said.
“It might put tremendous pressure on the long-term viability of Bulacan. Keep in mind that it’s a P700-billion project. It is sensible that they will probably want to consolidate the 2 for higher planning and long-term project viability because now you may control the 2,” Mr. Danao said in an interview.
If the Bulacan airport and NAIA work in tandem, the airports’ capability will quadruple naturally, he said.
“We are able to have more flights inbound and outbound. But here is the challenge now: it doesn’t stop there. That’s the reason the regional airports are being developed. They’re the natural tributaries of the passenger volume via Manila,” Mr. Danao said.
For Nigel Paul C. Villarete, senior adviser on public-private partnerships on the technical advisory group Libra Konsult, Inc. and former chief executive officer of Mactan-Cebu International Airport Authority, there may be a have to rationalize the variety of airports in Metro Manila.
“Vis-a-vis their existing and proposed capacities in addition to their locations and distances from one another,” he said.
Airports operate more efficiently with size but only as much as a certain point, Mr. Villarete said, adding that the Philippines shouldn’t have more airports than what could possibly be more efficiently served by a certain number.
“Locating more airports in strategic locations vis-a-vis the metropolitan area, in fact, has its merits, but there stays the economy of bulk, especially with costly infrastructure,” Mr. Villarete said.
He said further complications would likely ensue if quite a few airports are run by different and competing ownership.
“With one single owner, quite a few airports could be justified by their owners through profitability indicators,” Mr. Villarete said.
Major infrastructure development needed
For Rene S. Santiago, former president of the Transportation Science Society of the Philippines, redistribution of flights to the three airports may not occur anytime soon.
It will be higher for airline firms to make a decision on flight allocation or distribution than leaving it to the federal government, Mr. Santiago said, further noting, nonetheless, that airlines won’t settle on their very own unless forced.
INFRASTRUCTURE NEEDED
For now, separation between domestic and international flights won’t be feasible amid the absence of an expressway or rail links connecting the airports.
Mr. Santiago said separating domestic and international flights would turn out to be a serious problem as a result of inter-line transfers.
But he didn’t entirely disregard the concept, suggesting that it could possibly be possible for Clark International Airport and NAIA once the North–South Commuter Railway is accomplished and operational by 2029.
Mr. Danao said developing the suitable infrastructure may be very vital as it will possibly boost tourism anywhere within the Philippines.
“From my perspective as a business advisor, we’d like to develop the countryside, too. Because these expected massive capacities can’t be accommodated all inside Metro Manila and Luzon. When you have got that sort of big capability, you may accommodate more airlines,” he said.
Nevertheless, a national agency overseeing airports might be needed to make sure service and operational efficiency, Mr. Villarete said.
Mr. Villarete said the Civil Aviation Authority of the Philippines (CAAP) should exercise its default function amid the absence of a “national airport agency.”
“I even have long proposed the establishment of a national oversight agency for airports to rationalize their size and locations, but we don’t have one till now. CAAP needed to take that role within the meantime,” he said.
Transportation Undersecretary for Aviation and Airports Roberto C.O. Lim said that the Department of Transportation (DoTr) is considering either creating an independent agency or forming a three way partnership with government corporations under a public-private partnership (PPP) scheme to privately manage and operate the Philippines’ air traffic management system.
The DoTr wants CAAP to focus solely on being a regulator, Mr. Lim said, adding that currently, CAAP is liable for each operating airports and managing air traffic control.
Ricardo P. Isla, chief executive officer of AirAsia Philippines, said the low-cost carrier is optimistic concerning the operations of NAIA under its latest private operator, noting that the corporate is actively coordinating with NNIC.
“With all the brand new airport developments, you already see the NAIA and all the development that is going on. There might be Bulacan, there may be Sangley, and all of the public-private partnership airport developments across the country. We are able to dream greater,” Cebu Pacific Chief Marketing and Customer Experience Officer Candice A. Iyog said.
Cebu Pacific also plans to further expand its Manila hub, while also strengthening its hubs in Cebu and Clark and opening latest bases in Davao and Iloilo.
“The potential economic impact of those airport developments might be massive. We’re opening and expanding our capacities in tourism, bringing more jobs for Filipinos and more opportunities for us to develop our products to cater to them,” PwC Philippines’ Mr. Danao said.
