MCIA execs say airport fee hike for ‘infra projects’

CEBU, Philippines - Mactan Cebu International Airport Authority officials told a public hearing yesterday that the increase in passenger service charge for domestic and international passengers they are asking is meant to finance ongoing infrastructure projects of the airport.

No one registered any strong opposition to the proposal, although some of those present inquired about the primary purpose for the increased fees.

The passenger service charge is an airport fee imposed on departing and connecting passengers at an airport.

MCIA General Manager Nigel Paul Villarete said that the public hearing yesterday was in fulfillment of a July 1 MCIA board of directors resolution, which proposed an increase in the passenger service charge for domestic passengers amounting to P250 or more but not exceeding P500.

For international passengers, the fee was proposed to increase from P600 to P1,000. The MCIAA board proposed the implementation of the new charges by October 1 this year.

Villarete said they asked the affected stakeholders and sectors to submit their position of papers to be included in the discussion of the MCIAA in deliberating the proposed increase.

The MCIAA, he said, would also conduct a focus group discussion with airport stakeholders to discuss the issues relevant to the proposed increase of P100 for domestic and P200 for international passengers.

During the hearing, Cebu Chamber of Commerce and Industry representatives also aired their concerns over safety measures undertaken by the airport authorities.

Lawyer Jose Bernas, who represents a big company in Manila, inquired about where the added revenue would be used in terms of projects at the airport.

Villarete said MCIAA’s financial revenue stream decreased from about P1.5 billion a year to only P500 million after the Concession Agreement with GMR-Megawide, which is not enough for them to undertake all the major rehabilitation and improvements, and maintain MCIA’s status as a duly certificated Aerodrome of the Republic of the Philippines.

At the Cebu City Hall, Mayor Michael Rama said the increase should be commensurate to the service and the available facilities, saying it “maybe the time” that the fees be revisited

Rama, though, said that before the increase is implemented, airport facilities and services should be improved.

“Mang-increase ka unya inig abot nimo ang CR hugaw,” he said.

Rama said that there are a lot of things to be desired in terms of developments at the airport.

He said that the sentiments of the public must be heard first before the any increase is imposed. –Jose P. Sollano and Jean Marvette A. Demecillo/RHM (FREEMAN)