Monday, August 20, 2012

Regulator seeks hefty hike in Region 8 terminal fees

published August 18, 2012 in BusinessWorld

The Civil Aviation Authority of the Philippines (CAAP) has proposed a fivefold increase in terminal fees in all 10 airports in Eastern Visayas, eliciting objections from the business sector.

Raul Glorioso, chief of the Aerodrome Development and Management Service of CAAP, said in a public hearing here last week that the proposed adjustment "is part of cost recovery on investments made on the various related infrastructure and navigational projects of airports nationwide."

The CAAP’s proposal will bring the terminal fee to P150 from the current P30 at the Daniel Z. Romualdez (DZR) Airport and P100 from the current P20 at the airports in Catarman, Northern Samar; Calbayog City, Samar; and Ormoc City, Leyte.

The fee will increase to P50 from the current P10 at the community airports in Naval in Biliran, Borongan City in Eastern Samar, Hilongos in Leyte, Catbalogan City in Samar, Maasin City in Southern Leyte, and Guiuan, Eastern Samar.

Go Tic Ching, president of the Tacloban Filipino Chinese Chamber of Commerce and Industry, issued a statement saying the rate increase is not justifiable in the absence of major improvements particularly at DZR Airport, the region’s main facility.

"The DZR Airport is one of the seven busiest airports in the country. The government should ensure a safe, clean and a new well-maintained airport terminal," Mr. Ching said.

Robert R. Castanares, president of the Southern Leyte Chamber of Commerce and Industry, also opposed the proposal.

"CAAP should address first the concerns raised by tourists," he said

A survey conducted by the German Agency for International Cooperation (GIZ) last year showed 77% of tourist-respondents rating airport facilities in the region as poor.

Another public hearing is scheduled for Aug. 30. Suggestions will be presented to the CAAP board for consideration afterwards. The board is expected to decide on the matter by the end of next month, said CAAP Eastern Visayas Area Manager Antonio B. Alfonso.

"For Tacloban Airport, we will need funding to expand the size of the pre-departure area so it will accommodate 600 passengers. The existing departure lounge area is only 300-seater," Mr. Alfonso said.

"This was designed when the DZR airport was just serving Boeing 737, but now Airbus 320 is also using the facility."

Mr. Alfonso said the DZR airport is not earning enough to sustain its operations. In 2011, the airport earned only P51 million, half of the P105.47-million annual budget provided by CAAP.