Domestic terminal fee hiked further to P300

By: Vanessa Claire Lucero January 08,2016 - 01:24 AM

As programmed, the second tranche of the P100 increase in the domestic terminal fee at the Mactan Cebu International Airport took effect on January 1, 2016.

Domestic passengers will now have to pay P300 as passenger service charge, commonly known as terminal fee.

The international terminal fee remains at P750, after a P200 increase in November 2014.

The domestic terminal fee was first increased by P20 to P220 shortly after the takeover of private operator GMR-Megawide Cebu Airport Corp. (GMCAC) in November 2014. The second tranche, P80, increased the terminal fee to P300 effective January 1 this year.

The domestic passenger service charge has been integrated into airline tickets since 2013. The increase is provided for in the 25-year concession contract awarded to GMCAC.

Andrew Acquaah Harrison, GMCAC chief executive advisor, said the proceeds from the higher fees will be used to finance the improvement of airport facilities.

“The model that’s being used for this concept for the terminal fee collected actually goes to fund several different initiatives. This model is practiced in most airports around the world where there is one collection that’s subdivided to support different resources in the airport,” Harrison said during the 888 weekly news forum.

Asked whether the public can expect further increases in terminal fees, Harrison said the increase is a fixed formula controlled by the government.

Meanwhile, the Mactan Cebu International Airport Passenger Terminal Building Project will receive the 2015 PFI Awards’ Transport Deal of the Year for Asia-Pacific, the Public-Private Partnership (PPP) Center said in a statement.

The PFI (Project Finance International) Awards are part of the Thomson Reuters Awards for Excellence, recognizing corporate and individual success in the global financial industry.

The awards, to be presented at the 2015 PFI Awards Dinner in London on February 3, will see over 800 of the world’s most senior and successful market professionals gather to celebrate industry excellence.

The project, estimated to cost P17.5 billion, is being undertaken by GMCAC. It will increase the airport’s capacity to 12.5 million passengers from the current 4.5 million. The airport currently serves more than 7.1 million passengers.

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TAGS: airport, Cebu, Mactan, MCIA

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