Supreme Court urged to void NAIA partnership with SMC group

MANILA, Philippines — Several groups have asked the Supreme Court on Tuesday, August 12, to void the public-private-partnership (PPP) agreement between the Manila International Airport Authority (MIAA) and San Miguel Corp.’s New NAIA Infra Corp. (NNIC).

The petition specifically challenges the validity of MIAA Revised Administrative Order (AO) No. 1, Series of 2024, the March 18, 2024 order, and the concession agreement with the NNIC, arguing that these orders allowed government agencies to bypass public participation and due process by approving sweeping airport fee hikes.

“This was done without genuine public consultation. Not one OFW, not one airport worker, not one ordinary passenger was meaningfully heard before these rate increases were approved,” the group’s lawyer, Kit Belmonte, said in a statement. 

“It’s not just bad policy — it’s a violation of the law and the Constitution,” he added. 

The petition alleged that AO No. 1 was issued without the required public hearings and that MIAA lacks the legal authority to set rates. 

It also raises concerns about an "unconstitutional delegation" of power to NNIC, which allows the private consortium to impose "non-regulated fees" without government oversight. 

The petitioners also flagged a "deficit payment clause," which could force the government to subsidize NNIC if its proposed rate hikes are rejected.

Belmonte also warned that the new charges would significantly increase travel costs for millions of Filipinos, particularly OFWs and airport employees, without guaranteeing improved service. 

He also raised concerns about competition, noting that NNIC's control over both NAIA and the Bulacan Airport could lead to a monopoly.

Nature of the petition. The petitioners are asking the Supreme Court to issue a temporary restraining order to halt the deal, nullify the measures, and prohibit their enforcement. 

Belmonte clarified that the petition is not against upgrading NAIA but is aimed at ensuring the process is "lawfully, transparent and with the people’s voice at the center.”

Since September 14, the San Miguel-led group has managed NAIA after winning the bidding for the airport’s contract for its maintenance, operation and upgrade.

The consortium includes San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc. and Incheon International Airport Corp.