MCIAA told to justify or hold terminal fee hike

Terminal 2 of MCIA (CDN PHOTO/JUNJIE MENDOZA)

A group of travel agencies has joined the call for the Mactan Cebu International Airport Authority (MCIAA) to put on hold any increase in the Passenger Services Charge (PSC or terminal fee) until the airport management can clearly explain why an increase is needed now.

In an interview yesterday, Consul Robert Lim Joseph, Network of Independent Travel Agencies (Nitas) chairman, said he and the members of the organization don’t understand why the airport authority is asking for an increase now.

“For one, if they are saying that they need to generate additional income for improvements in the airport, then the P14.4 billion contract that GMR-Megawide committed to pay to the DOTC (Department of Transportation and Communication) can be tapped,” Joseph said.

Joseph said the P14.4 billion was paid for the Cebu project; thus, it should be spent for the improvement of the airport of Cebu and not for other airports in the country.

ICAO CERTIFICATION

Nigel Paul Villarete, MCIAA general manager, however, said that for the last few years they have not been

relying on any support from the national government including the DOTC to fund the improvement or rehabilitation of the facilities in the airport.

“It is preferable to comply with ICAO’s (International Civil Aviation Organization) policies using the PSC rather than to depend on annual appropriations from the national government. Our experience with the latter shows us the disadvantages of this scheme, resulting to delays and congestion in many of our airports,” Villarete said.

Villarete said that today, MCIA is the only airport in the country that has an ICAO safety certification.
He said they have to consistently improve facilities in the airport to keep the certification.

The ICAO inspects and audits the MCIA yearly to see if they comply with the aviation agency’s standards.
Villarete also said when GMR-Megawide Cebu Airport Corp. takes over the terminal on Nov. 1, the MCIA revenue stream will decrease from P1.5 billion to only P500 million a year, which will only be enough for operations cost including the salaries of the 400 airport employees.

“The terminal itself covers only 5.3 hectares, or one percent, of the airport’s total land area of about 500 hectares. Our revenue stream will not be sufficient to undertake all the major rehabilitation and improvements, and it will be difficult to maintain its status as a duly certified A aerodome of the country,” he said.

Joseph, however, said that if that’s the case, then the authority should present its financial report in the past to justify their claim.

“They have been able to survive at this rate for many years. Why do they suddenly ask for an increase now? The financial report should be presented and audited,” he said.

Joseph said that their position has always been not to implement any increase until the new terminal is built upon learning of the proposed increase.

“We thought that it was GMR-Megawide who was asking for the increase and thought why would they ask for one now? They have not built the new terminal yet. It turns out it’s the authority themselves asking for this. Well, then, we need to see the financial report first and see that the additional cost to passengers is really needed,” he said.

The MCIAA sought for an increase of P100 for domestic passengers and P200 for international passengers which fees, if implemented, will be P300 for domestic and P750 for international passengers.
“With this rate, Cebu’s rate is higher than those in Manila. That should not be the case,” he said.

PUBLIC HEARING

Last Thursday, MCIAA held a public hearing on the proposed increase in the Passenger Service Charge at the MIP Lounge which was attended by few officials from the private sector including airline companies like Cebu Pacific Air and AirAsia.

Some of the attendees requested for another hearing saying most of them did not know of the proposed increase and the hearing until they read about it in the newspapers.

Villarete said he will report the requests by end of this month to the members of the board who will have final say on the issue.

The supposed target to implement the increase is October 1, or a month before GMR-Megawide Cebu Airport Corp. takes over on November 1.

Villarete however said that he is inclined to postpone implementation following the feedback they got during the hearing.