MotorSarge Posted June 20, 2023 Posted June 20, 2023 (edited) Philippine Tycoons Raise Proposed Investment To Upgrade Airport To $4.8 Billion Amid Tourism Boom (forbes.com) The Manila International Airport Consortium said it will spend as much as 267 billion pesos ($4.8 billion) to upgrade the country’s congested main international gateway amid a post-pandemic tourism boom. The consortium—backed by the country’s biggest conglomerates including billionaire Andrew Tan’s Alliance Global Group, and Filinvest Development and JG Summit—partnered with U.S.-based Global Infrastructure Partners, which has interests in airports across London and Sydney, to modernize the Ninoy Aquino International Airport and more than double its capacity to 70 million passengers a year by 2048 from 31 million currently. The project will be implemented in phases, with the first phase expected to bring NAIA annual passenger capacity to 54 million by 2025 and then to 62.5 million by 2028. The consortium budgeted 100 billion pesos when it proposed the project in April. “The Manila International Airport Consortium recognizes the immense task of transforming NAIA to meet the exponentially growing demands of Mega Manila air travel, not only in the here and now but also in the future,” Kevin Tan, chairman and president of Alliance Global-InfraCorp Development. “It is because of this that the members of the consortium have pooled together its significant resources, technical expertise and operational experience to put forward a NAIA Masterplan.” The consortium also includes Ayala Corp’s AC Infrastructure, Aboitiz InfraCapital (operator of Mactan-Cebu International Airport) and billionaire Lucio Tan’s Asia’s Emerging Dragon Corp. A proposal to upgrade NAIA in 2018 was rejected by then-President Rodrigo Duterte during the pandemic. The country’s main international gateway—which was voted the world’s worst airport a few times by the travel website Sleeping In Airports—has been struggling to cope with burgeoning passenger traffic since flights resumed after pandemic restrictions were lifted. A power failure in January forced the cancellation of more than 300 flights and stranded more than 65,000 passengers. A power outage in May disrupted another 48 flights. The consortium’s proposal “represents the fastest route to the rehabilitation and modernization that NAIA urgently needs,” Cosette Canilao, president and CEO of Aboitiz InfraCapital said. Of the consortium’s proposed investment, 57 billion pesos will be paid to the government for a 25-year concession to manage and operate the airport, while the rest would be spent on modernizing the facility. Edited June 21, 2023 by Mike J Added article text per forum rules Link to comment Share on other sites More sharing options...
JJReyes Posted June 20, 2023 Posted June 20, 2023 China is no longer a viable option for large size foreign investments. In Shanghai alone, more than 500 international companies have moved their manufacturing to other Asian countries like Vietnam, Malaysia, Indonesia and the Philippines. Another beneficiary is India. This shift is due to fear over China's "Shared Prosperity" policy which are code words about taking money from the wealth. Another is the government belligerent attitude on their global neighbors. Upgrading Philippine airports is a logical investment opportunity. What puzzles, based on this announcement, me is the choice of NAIA. Clark Airport and the newly proposed Philippine Airlines airport seems more logical because undeveloped land is available. 3 Link to comment Share on other sites More sharing options...
MotorSarge Posted June 20, 2023 Author Posted June 20, 2023 53 minutes ago, JJReyes said: China is no longer a viable option for large size foreign investments. In Shanghai alone, more than 500 international companies have moved their manufacturing to other Asian countries like Vietnam, Malaysia, Indonesia and the Philippines. Another beneficiary is India. This shift is due to fear over China's "Shared Prosperity" policy which are code words about taking money from the wealth. Another is the government belligerent attitude on their global neighbors. Upgrading Philippine airports is a logical investment opportunity. What puzzles, based on this announcement, me is the choice of NAIA. Clark Airport and the newly proposed Philippine Airlines airport seems more logical because undeveloped land is available. What puzzles, based on this announcement, me is the choice of NAIA. Clark Airport and the newly proposed Philippine Airlines airport seems more logical because undeveloped land is available. I totally agree with you on this?? I'm very curious of what upgrades will actually come to be, haven't we tried to upgrade the worst airport in the world numerous times already How much of the proposed monies will actually make it into the projects, there will be quite a few getting their pockets lined Link to comment Share on other sites More sharing options...
GeoffH Posted June 20, 2023 Posted June 20, 2023 8 hours ago, MotorSarge said: What puzzles, based on this announcement, me is the choice of NAIA. Clark Airport and the newly proposed Philippine Airlines airport seems more logical because undeveloped land is available. I honestly thought the primary restriction with NAIA was the number of landing and take off time slots, upgrading the terminals would be nice, but it's not in and of itself going to increase the actual passenger capacity I'd think. Personally I'd like to see more international flights going to Mactan-Cebu, that's really nice since they upgraded it. 4 Link to comment Share on other sites More sharing options...
JJReyes Posted June 20, 2023 Posted June 20, 2023 8 hours ago, MotorSarge said: I'm very curious of what upgrades will actually come to be, haven't we tried to upgrade the worst airport in the world numerous times already More likely a portion will go towards the purchase of land around the airport perimeter, another terminal building, and upgrades to equipment. You need land for the flight related suppliers like aircraft parking, engine repair and catering. The NAIA terminals are small and obsolete. They are already overcrowded and can't handle additional passenger traffic. The new equipment will increase the number of flights within a 24-hour period. Margaret Thatcher privatized airports in Great Britain. The investment will probably be also used for acquisition from the government. 1 Link to comment Share on other sites More sharing options...
Forum Support Mike J Posted June 21, 2023 Forum Support Posted June 21, 2023 I believe I read in another source that the real problem is no room for an additional runway? 1 Link to comment Share on other sites More sharing options...
Possum Posted June 21, 2023 Posted June 21, 2023 5 hours ago, Mike J said: I believe I read in another source that the real problem is no room for an additional runway? I read the same thing. Increasing passenger traffic to this airport seems ridiculous to me. They haven't been able to effectively manage getting people to and from the airport for many years. There is a new airport being built in Bulacan, Clark already exists. What is needed is decent rail access between the airports and the greater Metro Manila area. This would seem to be cheaper than spending money on NAIA. 2 Link to comment Share on other sites More sharing options...
MotorSarge Posted June 21, 2023 Author Posted June 21, 2023 12 hours ago, Mike J said: I believe I read in another source that the real problem is no room for an additional runway? This is quite visually obvious while flying in and out, the most proficient possible way to increase flights will be by fair eminent domain.. Link to comment Share on other sites More sharing options...
OnMyWay Posted June 21, 2023 Posted June 21, 2023 On 6/20/2023 at 8:02 PM, MotorSarge said: to modernize the Ninoy Aquino International Airport and more than double its capacity to 70 million passengers a year by 2048 from 31 million currently. The project will be implemented in phases, with the first phase expected to bring NAIA annual passenger capacity to 54 million by 2025 I call BS. What could possibly happen to safely increase capacity from 31 to 51 mil in 2 years? Impossible, especially considering they can't effectively handle the 31 now. This all looks like a scheme to make the super rich, super richer, and nothing will change. 8 hours ago, Greglm said: read the same thing. Increasing passenger traffic to this airport seems ridiculous to me. They haven't been able to effectively manage getting people to and from the airport for many years. There is a new airport being built in Bulacan, Clark already exists. What is needed is decent rail access between the airports and the greater Metro Manila area. This would seem to be cheaper than spending money on NAIA. I think there have been several studies that concluded they need new airports elsewhere. Where would a new runway be put? Tear out the upper half of Paranaque? And, there is a lot of brand new infrastructure in the area. The 4 airport terminals are already a convoluted mess and I can't see how to improve that without tearing everything down. 2 Link to comment Share on other sites More sharing options...
Possum Posted June 21, 2023 Posted June 21, 2023 I think there is something fishy about this plan, don't think the public is getting all the information. 1 Link to comment Share on other sites More sharing options...
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