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NAIA Terminal 1 to exclusively serve Philippine Airlines under new reassignment plan

The Ninoy Aquino International Airport (NAIA) is set for a major terminal reassignment as part of efforts to decongest the facility and improve efficiency, according to the New NAIA Infrastructure Corp. (NNIC). This move comes as NNIC prepares to take over NAIA on September 14, 2024, under a P170.6-billion concession agreement with the Department of Transportation (DOTr).

Under the planned changes, NAIA Terminal 1 will become the exclusive hub for Philippine Airlines (PAL), while Terminal 2 will handle domestic flights for both PAL and Cebu Pacific. Terminal 3 will be dedicated to all international carriers, and Terminal 4 will serve AirAsia flights, which will move from their current location in Terminal 2.

The reassignment is part of NNIC’s broader goal to boost airport efficiency and increase flight movements per hour from 41 to 48. “There’s really congestion at the airport, and if we maintain the status quo, the impact on passenger experience will be significant,” NNIC general manager Angelito Alvarez said during a recent aviation forum in Makati City.

The process will take place gradually, with the first phase seeing AirAsia moving from Terminal 2 to Terminal 4, freeing up space for Cebu Pacific to shift from Terminal 3. This will allow international carriers operating in Terminal 1 to move into the vacated slots in Terminal 3. Full completion of the reassignment is expected within two years, after the extension of Terminal 2 is finished.

Alvarez emphasized that the reassignment is necessary for improving the overall passenger experience and reducing congestion at NAIA, which has long been a concern for both travelers and airlines. Major carriers, including PAL, Cebu Pacific, and AirAsia Philippines, have expressed their willingness to cooperate with NNIC in the reassignment process.

NNIC, a consortium composed of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp., has committed P122.3 billion in capital investments over the 25-year concession period. The group is also expected to make an upfront payment of P30 billion to the government, along with annual payments of P2 billion.