NAIA Privatization: Modernization or Money Grab? Legal Battle Looms Over Manila Airport Deal

NAIA Privatization: Modernization or Money Grab? Legal Battle Looms Over Manila Airport Deal

By Bing Jabadan – TheNationWeek.Com | August 14, 2025

MANILA, Philippines – A coalition of airport workers, advocacy groups, and concerned citizens has taken its fight against the Ninoy Aquino International Airport’s (NAIA) privatization to the Supreme Court (SC).

The petition seeks to annul the public-private partnership (PPP) agreement entered into by San Miguel Corp.’s New NAIA Infrastructure Corp. (NNIC) and the Manila International Airport Authority (MIAA), claiming a lack of transparency and exorbitant fee increases imposed at the airport without public consultations.

In a 36-page legal challenge spearheaded by lawyer Christopher Belmonte, petitioners declare that the regulations implemented by the NNIC are “drastic,” particularly regarding the airport’s increased parking fees, land lease, and office rentals.

New regulations, they claim, were implemented without proper consultation with stakeholders.

The petition zeroes in on the MIAA Administrative Order (AO) No. 1, stating concessions with the NNIC.

“Overseas Filipino workers (OFWs), airport staff, and regular travelers were glaringly absent when these fee increases were rubber-stamped,” Belmonte said, highlighting the grievances of the petitioners.

The legal action has intensified further scrutiny surrounding the NAIA PPP, following a similar petition filed earlier this year.

The current petitioners represent employees from Philippine Airlines and NAIA, concerned citizens, and organizations like the Samahang Manggagawa sa Paliparan ng Pilipinas, Freedom From Debt Coalition, and OFW Wellness Association Inc.

Named respondents in the petition are key officials, including Executive Secretary Lucas Bersamin, and government agencies such as the Department of Transportation (DOTr), MIAA, and NNIC, setting the stage for a high-stakes legal battle.

The controversial concession agreement, signed on March 18, 2024, grants the NNIC the rights to rehabilitate, operate, expand, and eventually transfer NAIA over a 15-year period, with a possible 10-year extension.

The NNIC began imposing the disputed fees on Oct. 1, 2024, following the implementation of AO 1, which dramatically raised parking rates, land lease fees, office rentals, and other charges.

‘Blindsided,’ Excluded: A Cry for Transparency

The petitioners claimed they were intentionally kept in the dark, “blindsided,” and “excluded” from the decision-making process.

They criticized public hearings conducted in February 2024 as mere formalities that failed to provide an accounting of the events leading to the agreement.

Beyond transparency issues, petitioners challenged the “doctrine of non-delegation of legislative powers,” arguing that Congress improperly delegated its authority to set rates to MIAA, DOTr, and ultimately the Cabinet.

While acknowledging the need for infrastructure development, the petitioners insisted that progress should not come at the expense of governance and public accountability.

“Advancement should not be rushed, concealed, or enforced without considering the voices and welfare of the populace,” they said, emphasizing that NAIA is a public asset belonging to the Filipino people.

The SC’s decision could have far-reaching consequences, potentially reshaping the landscape of Philippine infrastructure initiatives and setting a precedent for PPPs nationwide.

The case raises a fundamental question: Can modernization occur without sacrificing transparency and public involvement?

The Price of Progress: Rising Costs Spark Concern

The NNIC plan to overhaul NAIA’s outdated infrastructure and boost its operational capabilities.

However, this ambitious project is shadowed by growing concerns that the financial burden of this transformation will disproportionately impact passengers and businesses reliant on the airport’s services.

Under the 15-year concession agreement, the NNIC has committed a significant ₱170.6 billion investment to revamp NAIA’s infrastructure and enhance its operational capabilities.

The goal is to nearly double the airport’s annual passenger capacity from 35 million to 62 million, increase aircraft movements, and improve the overall passenger experience with upgraded retail and commercial facilities.

Yet, this optimism is tempered by worries about the substantial fee increases implemented to recoup the hefty investment.

The MIAA AO 1, Series of 2024, sanctioned under Executive Order 903 and approved by the Cabinet on Sept. 4, 2024, has triggered a series of controversial fee hikes.

The immediate repercussions include increased landing and take-off fees for international flights, which have surged from approximately $400 to a range of $794-$1,794, effective Oct. 1, 2024.

Cargo terminal fees for international shipments have also risen from ₱200/ton to ₱230/ton.

The most noticeable changes will be the passenger service charges, set to rise in September from ₱200 to ₱390 for domestic flights and from ₱550 to ₱950 for international flights.

Parking fees have skyrocketed, increasing from ₱300 to ₱1,200 for 24 hours, effective Oct. 1, 2024.

While exemptions exist for overseas Filipino workers, religious pilgrims, and athletes representing the Philippines, the broader implications for travelers and businesses remain a significant concern.

Compounding the situation, the order stipulates scheduled fee increases every five, 10, 15, and 20 years, indexed to inflation according to the Consumer Price Index, ensuring that these elevated costs will persist and escalate over time.

The prospect of high costs of recovery raises fears that the burden of the ₱170.6 billion investment will disproportionately affect passengers, airlines, and businesses at the NAIA.

This has also generated concern among various stakeholders, including “PUSO ng NAIA” (Pagkakaisa ng mga Users, Stakeholders at Obrero ng NAIA), a coalition advocating for the rights and interests of airport users, stakeholders, and workers.

The privatization of NAIA marks a significant move toward modernizing the Philippines’ main international gateway.

However, the success of the initiative hinges on striking a delicate balance between attracting private investment and ensuring that the benefits of progress do not come at the cost of financial burden on the people.