THE state of airports, like our toilets that go under the scrutiny of our visitors, is a reflection of a country’s good housekeeping and a source of national pride.
Our very own Ninoy Aquino International Airport (NAIA) has been a source of national shame, it being listed among the world’s worst airports by global aviation watchdogs year after year.
In November 2024, NAIA again earned the distinction of being the worst airport in the world, scoring a dismal 0.24 on a scale of zero to 10, with 10 being the highest. The main airports of our Southeast Asian neighbors Malaysia, Indonesia and Vietnam got higher scores than NAIA.
The Philippine Institute for Development Studies (PIDS), in a 2023 study, recommended an upgrade of the country’s major airports by partnering with the private sector to expand capacity and attract more tourists.
NAIA was already operating at overcapacity as early as 2016, exceeding its 35-million passenger limit by 4.6 million passengers. Last year, all its four terminals posted a record-breaking passenger volume of 50.1 million.
‘… tapping the private sector to restore our wounded national pride — when the government can’t — is a step in the right direction.’
In a bid to shed its negative image, government surrendered the stewardship of NAIA to a consortium led by San Miguel Corp. (SMC) in September last year. In just a short time, the private consortium appeared to have effected modest tangible changes, from efficient passenger traffic flow to improved facilities inside and outside the airport facilities.
The NAIA story is expected to be replicated when 20 more government airports are offered to the private sector, according to the Department of Transportation (DoTr).
The DoTr said airports like the Laguindingan International Airport in Misamis Oriental in Mindanao and the New Bohol-Panglao International Airport and the Iloilo International Airport, both in the Visayas, are in their advanced stages of privatization.
Privatization tenders were likewise submitted for several regional airports in Puerto Princesa in Palawan, Kalibo in Aklan, Davao province, and Siargao in Surigao province.
The privatization template will hew closely to the NAIA model, with the winning group pouring in billions similar to the P170.6 billion committed by the SMC-led consortium to transform NAIA.
The consortium aims to improve service and increase passenger traffic to 67 million a year with a flight movement of 48 planes per hour.
Global studies have proven the correctness of airport privatization to deliver improved service, boost efficiency, and expand passenger volume as governments grapple with lack of financial muscle to undertake such capital-intensive endeavor.
As airport operations improve and become at par with world standards, there will be fewer flight cancellations and a doubling in the airport’s operating income, a 2023 working paper of the National Bureau of Economic Research (NBER) based in North America said.
Clearly there’s an appetite from the private sector to take on the challenge of modernizing airports, as shown by big conglomerates lining up.
Hopefully, a pushback by potential investors in the light of the anticipated slowdown in the global economy due to high tariffs imposed by the US would be temporary.
Notwithstanding, tapping the private sector to restore our wounded national pride — when the government can’t — is a step in the right direction.
