NNIC, a year after

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While we're all busy following the developing stories about the deep-seated corruption in the bureaucracy—both appointed and elected—that has triggered a series of protests, the largest of which is scheduled for this Sunday, San Miguel Corp.-owned New NAIA Infra Corp. (NNIC) quietly celebrated a one-year milestone.

Last Sunday, Sept. 14, our premier airport, NAIA, marked its first year under NNIC with no fanfare but with new improvements for the ease and comfort of both inbound and outbound passengers.

Yes, Virginia, there’s noteworthy progress at Terminal 1. As an outbound passenger en route to South Korea a week ago, I observed that the immigration queue was less chaotic with the implementation of the eGovPH app. It was also noticeable that there's been a change in the demeanor of airport personnel, who seemed eager to assist.

Nope, I don’t consider myself a chionophile, but I do prefer cool weather. I mention this because Terminal 1’s air conditioning system, a perennial problem in the past, is now so cool that you need a jacket or a pullover.

From what I’ve learned, NNIC has installed 21 new air-conditioning units and chillers, along with new chairs and upgraded free Wi-Fi for the comfort of outbound passengers waiting for their flights.

“It has only been a year, but we have already made NAIA a better place for passengers. We have invested heavily in these changes; the terminals are more comfortable, and services are more reliable,” SMC and NNIC President Ramon S. “RSA” Ang proudly explained.

Since acquiring operational control of NAIA, with the end goal of transforming what has been tagged as one of the worst airports in the world, NNIC has already remitted some ₱48.38 billion to the national coffers as of end August this year.

The amount includes a ₱30 billion upfront payment for securing the NAIA rehabilitation, which was recognized by the UK-based leading source of global project finance intelligence, Project Finance International, as the Transport Deal of the Year at the PFI Asia Pacific Awards last February.

Breaking down its contribution to the national coffers, official data I gathered along the terminal corridor showed that NNIC remitted an annuity fee of ₱1.589 billion in 2024, which is projected to jump to nearly ₱2 billion—around ₱1.964 billion—for this year.

An annuity fee is an annual fixed fee NNIC pays to the Manila International Airport Authority, pegged at ₱2 billion annually for 25 years as stipulated under the concession agreement.

On the other hand, revenue remittances, at the start of its operational control covering the third quarter of the year, amounted to ₱23 million but leaped to ₱3.985 billion in the fourth quarter of 2024. The national government’s revenue share was ₱4.588 billion for the first quarter of the year and inched up to ₱4.643 billion in the second quarter.

Now, allow me to explain the hike in NAIA’s terminal fees. It wasn’t because NNIC summarily imposed the upward adjustments in terminal fees for both domestic and international passengers.

To put the issue in its proper perspective, the increase was set by the government, with the Asian Development Bank as an advisor, as part of the Public-Private Partnership concession agreement for NAIA’s modernization.

That’s right, Virginia, it’s the first time in 20 years that the fees are being updated to bring them closer to the fees imposed by other airports in the country. The ₱950 NAIA terminal fee for international passengers is even lower compared to the ₱1,030 charged by Mactan-Cebu, ₱2,685 in Singapore, and ₱1,710 in Phnom Penh.

Not all of the ₱950 terminal fee goes to NNIC. Under the concession agreement, a bigger slice, 82 percent or about ₱779, is remitted to the national coffers, with NNIC keeping a portion of only ₱171. Simply put, the “fees improve NAIA directly while also ensuring that the government—and the country—benefit from every peso.”

I said this before in the previous piece, and I will say it again: if we expect good service, comfort, and convenience, we have to do our share as travelers. And we ain’t seen nothing yet. The physical upgrades at NAIA continue.

As RSA puts it: “There’s still a lot to do, but what matters is that we have laid a stronger foundation. Filipinos can look forward to having a truly world-class NAIA in the years ahead.”

For this year, NNIC has allocated ₱13 billion for capital expenditures, a portion of which will bankroll the acquisition of a new facial recognition system powered by Collins Aerospace that allows passengers to check in, drop bags, clear security, and board flights using just their face. This biometric system for outbound passengers will be rolled out by the end of this month.

From my end, I am zealously looking forward to the transformation of our premier gateway into a world-class airport.