NEW NAIA Infra Corp. (NNIC) plans to use its new performance-based agreement with Philippine Airlines, Inc. (PAL) as a template for similar arrangements with other carriers operating at Ninoy Aquino International Airport (NAIA).
NNIC said on Tuesday that the airport use agreement (AUA), the first such standardized agreement with an airline under its management of NAIA, sets key performance indicators aimed at improving operational efficiency and aligning airline operations with the service levels that the airport operator is required to meet under its concession agreement with the government.
“This agreement gives us a clearer framework for setting expectations, measuring performance and working together to maintain consistent service standards,” NNIC President and Chief Executive Officer Ramon S. Ang said in a statement.
“That is important to making airport operations more efficient and dependable,” he added.
The agreement governs PAL’s use of airport facilities and infrastructure and sets out the respective responsibilities of the airline and airport operator.
NNIC said the service levels form part of PAL’s contractual obligations and include mechanisms for addressing persistent failure to meet agreed standards.
The airport operator said the framework is designed to support more consistent performance and improve coordination among parties involved in moving passengers, baggage, and aircraft through NAIA.
It cited check-in, boarding, baggage handling, ramp operations, and aircraft turnaround as areas where delays could affect succeeding flights and wider airport operations.
NNIC said the agreement would allow it to monitor service levels, identify operational problems, and require corrective action when necessary.
It is also taking a similar approach in agreements with ground handling and other service providers at NAIA, setting operating requirements for companies performing critical functions on behalf of airlines.
“This is a positive development for both PAL and NNIC, and ultimately for our passengers. It supports the continuing modernization of NAIA and our collective goal of delivering a better airport experience,” PAL Holdings, Inc. President and Chief Operating Officer Lucio C. Tan III said.
NNIC has been operating NAIA since September 2024 under a concession agreement with the government and has been upgrading terminal facilities, airport systems, airfield infrastructure, and passenger amenities.
The new operating framework comes as Philippine air passenger traffic rose 1.24% to 32.65 million in the first half from 32.25 million a year earlier, data from the Civil Aeronautics Board (CAB) showed.
International passenger traffic increased 2.69% to 15.27 million from 14.87 million, while domestic passenger traffic was nearly flat at 17.381 million compared with 17.383 million a year earlier.
Domestic carriers accounted for 7.41 million international passengers during the six-month period, while international carriers handled 7.86 million, CAB data showed.
Cebu Pacific and its wholly owned regional subsidiary Cebgo accounted for the largest share of domestic passenger traffic at a combined 10.01 million, while Cebu Pacific unit AirSWIFT Transport, Inc. carried 176,335 passengers.
PAL and PAL Express carried a combined 4.79 million domestic passengers. AirAsia Philippines handled 2.31 million, while boutique carrier Sunlight Air carried 92,846.
“The aviation industry continues to navigate its recovery, with airlines facing persistent headwinds from geopolitical uncertainties and high fuel price volatility. But even with these challenges, AirAsia is still finding measures to keep air travel accessible and affordable for everyone,” AirAsia Philippines told BusinessWorld on Tuesday.
The low-cost carrier said it remained optimistic about bookings in the second half, citing its latest on-time performance ranking from aviation analytics company OAG.
“We hope that these improvements coupled with our efforts to provide affordable travel would encourage passengers to book their flights for the coming months,” it said.
“As we look toward the fourth quarter, we will be launching new flights across our network including key destinations in China, Vietnam and Japan to further strengthen connectivity while providing passengers with more convenient and affordable options,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said in a previous statement.
Meanwhile, the House of Representatives on Monday approved on second reading a bill seeking to renew PAL’s legislative franchise for another 50 years ahead of its expiry in 2028. — Ashley Erika O. Jose
