Labor and Civic Groups Ask Supreme Court to Halt NAIA Privatization, Fee Hikes

A coalition of airport workers, labor unions, civic organizations, and advocacy groups has filed a petition before the Supreme Court (SC) seeking to stop the implementation of the Ninoy Aquino International Airport (NAIA) Public-Private Partnership (PPP) project, citing unconstitutional provisions and the looming burden of increased airport fees on the public.

The petitioners, led by the group Pagkakaisa ng mga Users, Stakeholders at Obrero ng NAIA (PUSO ng NAIA) and joined by organizations such as the Samahang Manggagawa sa Paliparan ng Pilipinas (SMPP), OFW Wellness Association, Partido Lakas Masa (PLM), National Confederation of Labor (NCL), Freedom from Debt Coalition (FDC), and other civil society groups, are challenging the 18 March 2024 concession agreement between the Manila International Airport Authority (MIAA) and San Miguel Corporation’s New NAIA Infra Corporation (NNIC).

In their petition, the groups asked the SC to issue a temporary restraining order (TRO) and a writ of preliminary injunction to suspend the enforcement of MIAA Administrative Order (AO) No. 1, Series of 2024, which authorizes NNIC to charge and collect various airport-related fees. They also urged the Court to declare both the administrative order and the PPP concession agreement unconstitutional, illegal, and void.

The petitioners allege that the MIAA and Department of Transportation (DOTr) bypassed mandatory public hearings required under Batas Pambansa Blg. 325 and the Administrative Code of 1987 when they approved sweeping fee revisions. They further argue that MIAA, which spearheaded the rate-setting process, has no legal authority to delegate quasi-legislative powers to a private concessionaire.

According to the petition, the creation of so-called “non-regulated fees” under AO 1 gives NNIC unchecked authority to impose charges without proper government oversight or safeguards. They also assailed the “Deficit Payment Clause” in the agreement, which allows NNIC to claim government subsidies if its proposed rate hikes are rejected — an arrangement the petitioners described as a dangerous and unconstitutional delegation of state power.

Petitioners warned that the impending fee hikes will have ripple effects across industries and directly affect millions of travelers, particularly overseas Filipino workers (OFWs) and employees dependent on airport-related businesses.

Under the revised fee structure, the Domestic Passenger Service Charge or Terminal Fee is expected to rise PHP200 to PHP390, while the International Passenger Service Charge is projected to increase from PHP550 to PHP950.

The petitioners emphasized that the higher costs would not only hurt businesses like airlines and Maintenance, Repair, and Overhaul (MRO) providers but would ultimately be passed on to the Filipino public.

Government officials previously touted that the NAIA PPP deal could generate PHP900 billion in revenue over 25 years through upfront payments, fixed annuities, and an 82.16% revenue share for the government. The DOTr estimates annual earnings of around PHP36 billion, a sharp contrast to NAIA’s current revenues of PHP14–PHP16 billion per year.

The petitioners, however, questioned these figures, warning that the optimistic projections are “a dream built on the backs of ordinary Filipino travelers.” They argue that achieving such revenues would require relentless fee hikes, effectively burdening workers, OFWs, and travelers instead of ensuring affordable and efficient air transport.

The group is asking the Supreme Court to halt the implementation of the PPP concession and the administrative order, nullify both measures, and ensure that future airport reforms undergo proper consultation and legislative oversight.

If granted, the case could set a major precedent in how the government pursues large-scale privatization projects, especially those with a significant impact on workers, OFWs, and millions of Filipino travelers.

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