Can a private consortium really transform Manila's airport into a world-class destination?

The Ninoy Aquino International Airport (NAIA) in the Philippines, which has been operational since 1948, has faced significant challenges, including overcapacity and negative rankings among major airports worldwide. In November 2024, a study ranked NAIA the worst among 61 airports, highlighting issues such as accessibility, cleanliness, and efficiency. This prompted a significant response from the Philippine government, leading to the establishment of the New NAIA Infrastructure Corporation (NNIC) in September 2024, which is now tasked with transforming the aging airport facilities. Under the management of multi-billionaire Ramon Ang’s San Miguel Corporation, the NNIC has committed to a 170.6 billion peso ($4 billion) investment over a 15-year concession period. The objective of this investment is to expand the airport's capacity from 35 million to 62 million passengers annually and increase air traffic movements from 30 to 40 per hour, enhancing overall passenger experience at NAIA. These enhancements are not only vital due to the increasing number of passengers, which reached a record high of 50 million in 2024, but also essential for the Philippines to remain competitive as a travel destination. Recent improvements have included the installation of moving walkways, which had often been out of service, and plans for extensive renovations like additional escalators, increased restroom facilities, better air-conditioning, and improved Wi-Fi connectivity. Furthermore, an ambitious plan to connect NAIA to the Manila Subway, which is expected to be completed by 2027, is also underway. This integration promises to facilitate easier access to the airport and help meet the growing demands of travelers. However, these ambitious plans come at a cost. The NNIC has proposed significant increases in terminal fees, set to take effect by September 2025. For international flights, the terminal fee will rise from 550 pesos to 950 pesos, while domestic flight fees will go from 200 pesos to 390 pesos. This increase has raised concerns among airline executives and passengers who fear that the hike could deter travelers or strain the already burdened public. Responding to these concerns, officials have emphasized the need for increased pricing to fund improvements and bring NAIA in line with global airport standards. While some passengers have noted positive changes at NAIA, such as the availability of the moving walkways, criticism remains regarding the pace of improvements and the necessity of increased costs in an already strained economic climate.