The Market Monitor Minding the Nation's Business
New NAIA Infra Corp. (NNIC) recently signed an airport use agreement (AUA) with Philippine Airlines (PAL), which aims to accelerate NNIC’s modernization plans for the Ninoy Aquino International Airport (NAIA).
The AUA will mainly improve coordination between NNIC and PAL with the airport operator focusing on upgrades on airport facilities, services and operational efficiency.
Under the partnership, NNIC and PAL will establish a framework that will govern the airline’s use of airport facilities and services while supporting efforts to enhance the overall passenger experience.
NNIC president and chief executive Ramon Ang said the agreement gives the companies “a clearer framework for setting expectations, measuring performance and working together to maintain consistent service standards.”
“That is important to making airport operations more efficient and dependable,” he said.
PAL Holdings president and chief operating officer Lucio Tan III said the deal is “a positive development for both PAL and NNIC, and ultimately for our passengers.”
“It supports the continuing modernization of NAIA and our collective goal of delivering a better airport experience,” he said.
The AUA governs PAL’s use of airport facilities and infrastructure and sets out the respective responsibilities of the airline and airport operator. The service levels are part of PAL’s contractual obligations and include mechanisms for addressing persistent failure to meet agreed standards.
The framework is designed to support more consistent performance across airport operations and improve coordination among the different parties involved in moving passengers, baggage and aircraft through NAIA.
A single flight depends on several units performing their roles on time and in sequence. Delays in areas such as check-in, boarding, baggage handling, ramp operations or aircraft turnaround can affect not only passengers on that flight but succeeding flights and the wider airport operation.
By establishing common performance requirements and clearer accountability, NNIC said it will be better able to monitor service levels, identify where operational problems occur and require corrective action when necessary.
NNIC is taking a similar approach in its agreements with ground handling and other service providers at NAIA, setting operating requirements for companies performing critical functions on behalf of airlines within the airport.
These arrangements are aligned with existing government regulations and NNIC’s obligations under the NAIA concession.
NNIC has been upgrading terminal facilities, airport systems, airfield infrastructure and passenger amenities since taking over NAIA operations in September 2024, while addressing long-standing capacity and operational constraints. The new operating frameworks extend that modernization to how airlines, service providers and the airport operator work together.