The Philippines’ main airport, the Ninoy Aquino International Airport (NAIA), urgently requires rehabilitation. Imagine, the gateway to the Philippines appears almost rural when compared to international airports like Singapore’s Changi, Seoul’s Incheon, and Beijing’s Daxing. It even seems second-rate next to the Mactan Cebu International Airport’s Terminal 2 and Clark International Airport’s Terminal 2. Clearly, action is necessary. While the idea of its privatization was widely supported, San Miguel Corporation (SMC) emerged as the winning consortium for the NAIA rehabilitation.
A significant number are optimistic, yet there are also many who expressed disappointment upon learning that SMC won the NAIA bid. I am among the latter and I admit it. This is why my expectations for SMC to deliver are even higher now, with all eyes on them.
The intentions of SMC in pursuing the NAIA project raise questions, especially as they are simultaneously constructing the New Manila International Airport in Bulacan. Some speculate whether it was a strategic move to block the construction of another international airport in Sangley, which could compete with the Bulacan airport, or a tactic by SMC to compel all airlines to relocate to Bulacan, despite many still preferring NAIA for its accessible roads and proximity to Metro Manila. Nevertheless, all we can do now is hope SMC fulfills its commitment to significantly improve NAIA.
Why Do Many Doubt SMC?
Beyond its food and beverage ventures, SMC is known for its investments in infrastructure, including highways and terminals. They operate the SLEX, STAR Tollway, TPLEX, and the entire Skyway system. They are also credited with extending the runway of Caticlan Airport to accommodate Airbus A320 jets, previously limited to turboprops and STOL jets like the BAe 146. However, many of these projects appear incomplete, leading to perceptions of an “as if you now have a choice” attitude from SMC. This sentiment has been particularly strong in the aviation sector.
When SMC took over Philippine Airlines in 2012, it attempted to transform the premium full-service airline into a low-cost carrier to compete with Cebu Pacific, moving away from its competition with the likes of Cathay Pacific and Singapore Airlines. This strategy, which included configuring some A330-300s with an all-economy layout devoid of in-flight entertainment systems and employing marketing strategies similar to Cebu Pacific’s, disastrously impacted PAL’s image. The situation improved in 2014 when Lucio Tan regained control and committed to restoring PAL’s status as a premium legacy airline.
Caticlan Airport’s development, another project associated with SMC, remains problematic. While it now supports Airbus A320 operations, other promised improvements, like an expanded terminal, have not materialized. Passengers are still transported by bus to planes, and the current facilities are inadequate. The delay in completing these projects suggests a possible lack of urgency from SMC, perhaps assuming limited alternatives for travelers. Furthermore, SMC’s development of the Bulacan airport occurs as Caticlan Airport remains underdeveloped.
Outside aviation, SLEX’s pavement quality has not improved despite road widening efforts. Compared to NLEX, managed by Metro Pacific Tollway Corporation (MPTC), SLEX’s road quality is markedly inferior, disappointing toll-paying motorists.
Expectations were high that the GMR-Megawide Consortium, renowned for constructing Terminal 2 at both MCIA and CRK, would secure the NAIA project, given their proven track record. However, SMC’s history with airports, primarily limited to Caticlan, has not inspired confidence.
NAIA’s role as the Philippines’ primary international gateway is critical, yet it continues to be criticized as one of the world’s worst airports, plagued by issues including cohabitation with wildlife. SMC’s responsibility in transforming NAIA is therefore monumental.
SMC Must Prove Itself
Following several setbacks in aviation, it’s crucial that SMC demonstrates its capability with the NAIA rehabilitation project, a significant opportunity to influence the Philippines’ future as a tourism destination and support the growth of its airlines. Aviation is vital to national development, and SMC must abandon its complacent mindset. Despite ongoing skepticism, it’s SMC’s responsibility to rehabilitate NAIA effectively, surpassing the expectations of passengers, airlines, and the aviation industry. This is SMC’s chance to positively redefine its legacy in Philippine aviation, moving away from a history of unfinished projects.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
