Rising Airport Fees Spark Protests; Critics Warn of Traveler Burden

Rising Airport Fees Spark Protests; Critics Warn of Traveler Burden

By Bing Jabadan – TheNationWeek.Com  | August 20, 2025

MANILA, Philippines – A storm of protest is brewing over planned fee increases at the Ninoy Aquino International Airport (NAIA), with critics warning that the government’s ambitious revenue targets will be achieved at the expense of travelers.

On Aviation Day on Tuesday (Aug. 19, 2025), the coalition “PUSO ng NAIA” (Heart of NAIA) took to the streets, transforming the occasion into a platform to challenge the privatization of the airport and its potential impact on affordability.

The group, comprised of concerned citizens, labor unions, overseas Filipino workers (OFWs), and aviation professionals, is asking the Supreme Court and the Department of Transportation (DOTr) to intervene.

They complained of the significant fee hikes mandated by a 2024 directive linked to the San Miguel Corp.-led (SMC) concession agreement and demanded a broader reconsideration of the airport’s privatization.

Sky-High Revenue Projections

The government projects nearly P900 billion in revenue over a 25-year period from its partnership with SMC’s New NAIA Infra Corp.

Officials from the Department of Transportation and the Manila International Airport Authority (MIAA) estimate that privatization will translate to roughly P36 billion in annual revenue through a combination of fees and revenue-sharing arrangements.

However, Romy Sauler, head of PUSO ng NAIA and former vice president of the Philippine Airlines Employees Union, expressed doubts about the figures.

He pointed out that NAIA’s current annual revenue averages only P14 to P16 billion, derived from passenger service charges, aeronautical fees, and other sources.

“To reach P900 billion, the government is essentially betting on continuous fee hikes, which will disproportionately burden workers, OFWs, and the very people Aviation Day intends to serve by ensuring accessible and safe air travel,” Sauler stated.

He questioned the transparency surrounding the revenue generation process and its potential ramifications for travelers’ wallets.

Legal Challenge to Fee Hikes Underway

On Aug. 12, PUSO ng NAIA escalated its fight by filing a petition with the SC, challenging the legality of MIAA Revised Administrative Order No. 1, Series of 2024, and the associated concession agreement.

The petition alleges that the government failed to conduct crucial public hearings and created a new category of “non-regulated fees” without proper oversight.

This, they argue, effectively hands a private entity unchecked authority to set charges.

“This petition isn’t about opposing modernization,” Sauler stressed.

“It’s about preventing the DOTr and MIAA from imposing illegal fee increases and transferring the power to set charges to private companies, circumventing legal and due process.”

Travelers Brace for Impending Price Surge

Starting in September, passengers using NAIA will face significantly higher terminal fees. International departure fees are slated to jump from P550 to P900, while domestic fees will rise from P200 to as much as P390. The coalition also voiced strong opposition to the “Deficit Payment Clause” embedded in the concession agreement. This clause obligates the government to financially subsidize the concessionaire if proposed fee hikes are rejected, potentially placing a significant burden on taxpayers.

“MIAA and the DOTr cannot shirk their responsibility,” Sauler asserted. “They are accountable for creating A.O. No. 1 and for establishing ‘non-regulated fees’ without adequate safeguards, while simultaneously committing the government to cover costs for rejected rate increases.”

Sauler underscored the very real human impact of these rising costs. “Every peso added to these charges affects families saving for tickets home, workers traveling for employment, and students flying for educational opportunities. These figures represent real lives, not just abstract statistics.”

Leveraging the symbolic weight of Aviation Day, PUSO ng NAIA is renewing its appeal to the Supreme Court to issue a temporary restraining order against the implementation of the administrative order and the concession agreement, with the ultimate goal of having them declared void.

“The nation’s aviation infrastructure should remain a public trust, not a private toll road,” Sauler concluded.

The San Miguel-led consortium was awarded a P170.6 billion contract in 2024 to operate, maintain, and rehabilitate NAIA.

The outcome of the legal challenge will determine whether those improvements are paid for by travelers or absorbed by the concessionaire.