The Market Monitor Minding the Nation's Business
By Riza Lozada
Philippine Airlines (PAL) has offered to build a P20-billion passenger terminal beside its current hub at the NAIA Centennial Terminal 2 to expand capacity and dramatically improve passenger convenience.
In a presentation before the Management Association of the Philippines (MAP) last August 30, PAL President Jaime Bautista showed an architect’s perspective of PAL’s proposed annex building.
He said the terminal would be designed to handle 12 to 15 million passengers per year and would have aerobridges capable of serving 12 to 17 wide-bodied and single aisle jets.
Bautista said NAIA Terminal 2 which PAL has been using exclusively since 1999, has far exceeded its maximum capacity as it was originally built as a domestic airport during the Ramos administration.
“When you talk about the future of NAIA, PAL is a very concerned stakeholder.
More importantly, however, we see PAL as a partner in shaping the future of NAIA,” Bautista said.
Bautista noted that the International Air Transport Association (IATA) estimated that the Philippines is at least five years behind in building airports.
“Just imagine the economic impact that the Philippine economy would have gained from an airport that can handle all potential travelers. The longer the delay, the bigger the loss to the country,” Bautista quoted IATA’s regional director Vinoop Goel as saying.
“Today, NAIA’s four terminals are hosting 42 million passengers per year, 12 million or 40 percent more than their design capacity,” Bautista said.
Constructing a new, 89,000 square-meter air terminal (equivalent to 200 basketball courts) north of NAIA 2 would help decongest the airport and provide PAL passengers much-deserved space, amenities and modern conveniences.
The proposed annex building will rise on a 16-hectare area adjacent to NAIA 2, comprising of the now-defunct Philippine Village Hotel, the former Nayong Pilipino complex and a property owned by the Philippine Amusement and Gaming Corporation (PAGCOR).
“The growth in air travel should have been higher, perhaps 12 percent or more (against the current 10 percent growth), which would have meant more tourists, more local travelers, more revenues for the national bottom line, if not for infrastructure constraints,” Bautista added.
Aside from the passenger terminal, the complex will include multi-level parking for 1,000 vehicles, a new cargo terminal and ground service facilities.
Bautista said PAL which currently operates at NAIA 1, NAIA 2, NAIA 3 for some of its domestic flights is keen on the annex building project to consolidate its operations, and provide adequate room for its growing fleet of jets and international and domestic passengers.
From its current fleet of 87 wide-bodied and single aisle jets, PAL expects its aircraft count to reach 96 by 2021.
For PAL’s vision to succeed, Bautista, however, stressed the need for government’s full support, especially in securing crucial land leases from agencies like the Manila International Airport Autrhority (MIAA) and PAGCOR.
“We also need government to continuously invest in building, developing, enhancing and upgrading airport infrstructure, not just for NAIA but all throughout the country, as PAL and other airlines out up more flights and open new routes in our race for a thriving economic future,” he said.
Bautista added that PAL has been doing its share to help decongest NAIA while stimulating air travel to the Philippines.
“We’re already building up a new network of local and regional flights from Clark, Cebu, Puerto Princesa, Davao, Caticlan and Kalibo,” he said, adding that PAL continues to invest in the latest technology to speed up passenger processing and aircraft turnaround times.
“How can we make productive use of open skies and liberal aviation policies if airport infrastructure severely limits our field of opportunities?,” he said.
Bautista said from 15 million passengers in 2017, PAL projects to carry more than 20 million passengers in 202.
He said PAL’s target if to increase its fleet from 87 aircraft today to at least 96 by 2021 to meet the rising demand for air travel.
“In the domestic skies, we are completely revamping our commuter fleet by introducing 12 New Generation Bombardier Q400s, a high-technology Canadian aircraft that, by the way, is the product of many Filipino hands and minds, as Filipinos make up 20 percent of the Bombardier work force in Canada,” he added.
Later this year, PAL is also taking delivery of two brand new Boeing 777-300ER aircraft, favored by passengers for long transpacific journeys, to complete a fleet of 10 B777s for deployment to New York, Los Angeles, San Francisco, Toronto, Vancouver and now also to London Heathrow.
“Next year we will start flying the Airbus A321 NEO, including a special longer-range version that will enable us to launch nonstop services to Brisbane, Delhi, Perth, Mumbai and Sapporo, as well as increase flights to Melbourne and other Asia/Pacific destinations,” Bautista said.
“We need the government to continuously invest in building, developing, enhancing and upgrading airport infrastructure, not just for NAIA but all throughout the country, as PAL and other airlines put up more flights and open new routes in our race for a thriving economic future,” he added.
