Philippine Airlines puts NAIA-2 annex plan on hold

PHILIPPINE Airlines (PAL) is putting on hold its plan to build an annex to the Ninoy Aquino International Airport (NAIA) Terminal 2, after the recent proposal of the “super consortium” of conglomerates to rehabilitate the whole airport system.

PAL President and Chief Operating Officer Jaime J. Bautista said the flag carrier is “still in discussion” with Philippine Amusement and Gaming Corp. (PAGCOR) regarding the property where it plans to build an annex.

“Still in discussion but when the consortium takes over they will have to work with PAGCOR. So yes, back seat for now. [Including the plan for another terminal?] Yes, yes,” Mr. Bautista told reporters last week.

Last September, PAL revived its proposal for a NAIA Terminal 2 annex, which will be built on a 16- hectare area that includes the now- defunct Philippine Village Hotel, the former Nayong Pilipino complex and the PAGCOR property.

However, PAGCOR has said the flag carrier cannot build its proposed P20-billion ($400-million) annex on the property adjacent to Terminal 2 since it does not own it.

The gaming industry regulator had said that PAL has been only leasing the 10- hectare property from PAGCOR and does not have a right to use it for any purpose other than as “an aircraft parking ramp/ apron facility,” as stipulated under a lease agreement signed between the airline and the previous management of PAGCOR, which expires in 2033.

The “super consortium” of conglomerates Aboitiz Infra Capital, Inc., AC Infrastructure Holdings Corp., Alliance Global Group, Inc., AEDC, Filinvest Development Corp., JG Summit Holdings, Inc. and Metro Pacific Investment Corp., submitted to the government on Feb. 13 a proposal for the rehabilitation of NAIA to turn it into a regional hub.

Transportation Undersecretary for Aviation Manuel Antonio L. Tamayo told reporters last week that evaluation of the unsolicited proposal may take two months. —