PAL seeks solutions to deal on new terminal with Pagcor

Flag carrier Philippine Airlines has expressed willingness to engage with the Philippine Amusement and Gaming Corp. (Pagcor) for its plan to build a P20-billion airport terminal at the old Nayong Pilipino premises, saying PAL has a valid contract for the lease of the property.

“PAL recognizes the role of Pagcor and reiterates its willingness to engage with Pagcor and other stakeholders in pursuit of its goal to work with government in building, developing, enhancing and upgrading airport infrastructure,” PAL said in a statement yesterday.

Last week, PAL president and chief operating officer Jaime Bautista said the carrier is proposing to build a new annex building which would house a passenger terminal designed to handle 12 to 15 million passengers per year and will have aerobridges capable of serving 12 to 17 wide-bodied and single aisle jets.

The proposed annex building will rise on a 16-hectare area adjacent to NAIA Terminal 2, comprising of the now defunct Philippine Village Hotel, former Nayong Pilipino complex, as well as a property owned by Pagcor.

Aside from the passenger terminal, the complex will include multi-level parking for 1,000 vehicles, a new cargo terminal and ground service facilities.

The proposal is intended to decongest traffic at the NAIA.

Earlier this week, Pagcor said PAL is prohibited under a lease agreement entered into in July 2014 to use the rented property other than as an aircraft parking ramp or apron facility without the regulator’s prior written consent.

PAL’s agreement with Pagcor covers the lease of a 10-hectare property located at the old Nayong Pilipino premises at P40 per square meters effective until July 11, 2033.

Pagcor also said its review of the lease contract with PAL showed the regulator has no absolute authority to lease out the property and so, it has asked the Office of the Solicitor General to issue a legal opinion on the matter.

PAL said however, the contract with Pagcor is valid.

“The existing contract between PAL and Pagcor is legal, valid and binding based on the terms negotiated and finalized by both parties three years ago,” the carrier said.

It also said Pagcor would still enter into a valid contract owing to the fact that it has control and/or possession over the area and has the legal personality to do so.

“PAL expects Pagcor to respect the terms of the contract,” PAL said.