Incheon Airport seen helping elevate NAIA to international standard

Incheon Airport seen helping elevate NAIA to international standard

Passengers are seen at the departure lobby of the Ninoy Aquino International Airport (NAIA) Terminal 3 in Pasay City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By John Victor D. Ordoñez, Reporter

INCHEON International Airport Corp.’s (IIAC) technical know-how is expected to help partner San Miguel Corp. (SMC) bring Ninoy Aquino International Airport (NAIA) to a global standard of quality, South Korean Ambassador to the Philippines Lee Sang-hwa said.

“We hope that they can leverage their expertise and worldwide reputation in modernizing NAIA… they are closely consulting with their counterparts including SMC and we hope Incheon’s expertise and views will be well reflected in the decision-making process,” he told BusinessWorld.

“I believe that (IIAC) have almost daily conversations with SMC… I hope things will improve faster than normal.”

The SMC-led New NAIA Infrastructure Corp., which includes the operator of South Korean’s main international airport, took over NAIA operations on Sept. 14, with plans to improve the airport’s roads, expand its terminal and capacity, and upgrade the passenger experience.

The NNIC also includes RMM Asian Logistics, Inc., a logistics company involved in infrastructure projects and RLW Aviation Development, Inc., a Philippine company.

Mr. Lee said IIAC has experts posted to Manila for discussions with their SMC counterparts on plans to improve NAIA.

“Incheon’s main role is to raise NAIA to global airport standards in order for Manila to compete with the region’s international hubs such as Singapore and Hong Kong,” Terry L. Ridon, a public investment analyst and convenor of the think tank InfraWatch PH, said via Messenger chat.

SMC President and Chief Executive Officer Ramon S. Ang told a forum last week that the conglomerate expects to show results and improvements to the airport within six months.

NAIA ranked 199th out of 239 airports in 69 countries in the 2024 global airport ranking report released by flight compensation company AirHelp.

Incheon International Airport was ranked 68th in the same global ranking.

SMC has said it would be spending about P3 billion and P5 billion on a new off-ramp from NAIA Expressway to Terminal 3, while also considering curb pricing schemes for the airport.

The Philippine Institute for Development Studies, in a study last year, said the airport suffered from both passenger and runway congestion.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said that while Incheon has a world-class record and is capable of bringing about improvements to NAIA, SMC will ultimately call the shots.

“The situation here is vastly different from Korea’s… SMC is the dominant partner who will set the pace,” he said via Viber.

The Department of Tourism (DoT) is aiming for 7.7 million international tourist arrivals this year.

As of Aug. 7, the Philippines has received 3.62 million inbound visitors, with 92% of them being foreigners, the DoT said last month.

Senators have started floor debate on a bill seeking to provide non-resident tourists VAT refunds for purchases worth at least P3,000, to encourage more visitor spending.

“SMC’s main role is navigating the country’s complex regulatory environment and providing leadership, strategy and financing to the nation’s international gateway,” Mr. Ridon said.