Aboitiz family expands airport empire with new Bohol contract
- Aboitiz InfraCapital has secured a long-term contract to manage and upgrade the Panglao International Airport in the central Philippines.
- The company plans significant investments in both the Panglao and Misamis Oriental airports to accommodate growing travel demands.
- This move reflects a broader government strategy to revitalize aging airport infrastructure through private sector involvement.
In recent months, the Aboitiz family, known for their extensive investments through Aboitiz Equity Ventures, has made significant strides in the Philippine airport management sector. This expansion includes a substantial 30-year contract awarded to Aboitiz InfraCapital for the upgrade and operation of an international airport in Panglao Island, Bohol, a region acknowledged for its tourism potential. The company plans to invest 4.5 billion pesos, approximately $77 million, to enhance the airport's facilities, aiming to increase its annual passenger capacity from two million to 2.5 million in the short term and further to 3.9 million by 2030. The commencement of the upgrade is scheduled for next year. This initiative succeeds the company's recent award of another 30-year concession for the international airport in Misamis Oriental, set to start in April next year, with an investment projected at 12.8 billion pesos. There is a growing trend in the Philippines to entrust the modernization and management of outdated airport infrastructure to private entities, as part of a broader strategy to rejuvenate the nation's travel industry amid a resurgence in demand. Noteworthy is the recent takeover of operations for Ninoy Aquino International Airport by a consortium led by San Miguel Corp., which signals an ongoing transformation in the country's aviation sector. The Philippine government is eager to privatize two additional major airports: Iloilo and Puerto Princesa. This effort to modernize the transport infrastructure reflects an understanding of its critical role in enhancing economic growth through improved tourism and connectivity. Aboitiz InfraCapital is keenly interested in participating in these upcoming airport projects as well. The Aboitiz family's investment portfolio includes the recent acquisition of Mactan-Cebu International Airport for 25 billion pesos, highlighting their commitment to expanding their influence in the aviation sector. As of August, the family's estimated net worth stands at $2.2 billion, placing them among the wealthiest individuals in the Philippines, according to Forbes.