Carriers Agree to Integrate Terminal Fees into Airline Tickets

After initial opposition by 17 foreign carriers to integrate the ₱550 (US$12.50 or £7.50) terminal fee into the price of an airline ticket, the majority of those carriers along with 15 other carriers have finally agreed to do so.

Image Source: Wikimedia

Under a Memorandum of Agreement signed last July 1 at Ninoy Aquino International Airport's (NAIA) Terminal 3, thirty-two foreign and domestic carriers and the Manila International Airport Authority (MIAA) have agreed to initially implement the integration of terminal fees into the cost of airline tickets beginning on October 1, 2014 with a transition period lasting through to September 30, 2015.  Full implementation will take place on October 1, 2015.  Once fully implemented, passengers can proceed directly to passport control from their carrier's check-in desk, facing one less queue.  

The Philippines is one of the few countries in South East Asia where airport authorities still directly collect the terminal fees from passengers.  The new move will allow the Philippines to align its practices with most of the world, where airlines, through their tickets, collect the fees on the airport authority's behalf.  Currently, domestic flights departing NAIA already integrate the terminal fee into the price of the ticket.  

However, not everyone is excited with this upcoming policy.  Overseas Filipino Workers (OFW) are currently exempt from paying this fee.  Recruiters of OFWs, who claim were not consulted, have expressed concern that this new policy will create confusion both for them and OFWs.  Under the new policy, OFWs or their recruiters will initially pay for a ticket that includes the terminal fee but can request for a refund of terminal fees at a designated ticket desk.  Recruiter Jackson Gan questioned why OFWs themselves should request for the refund of the fees when in fact it is the employers and agencies who pay for their ticket, including the terminal fees.  He added that the queues will shift from the terminal fee counters to the refund counters.  

Of the total amount of terminal fees collected from one passenger, ₱390 or 70.7% of it is used to maintain the facility; ₱100 or 18.1% is remitted to the national government and the remaining amount is allocated for security.  The collection of this terminal fee has been subject to criticism amidst NAIA's continued designation as one of the worst airports in the world.  Among those who called for improved use of terminal fees is Senator Ralph Recto, who earlier commented this year "If a mall charges a mere ₱10 for the use of a hotel-like toilet, I can't see why a Filipino travelling abroad who pays ₱550 in terminal fees and ₱1,620 in travel tax should be entitled to less."

Image Source: Sleepinginairports.net

Had the foreign carriers continued with their opposition to this new policy, the MIAA said that it could be grounds to refuse them transfer of their operations from Terminal 1 to Terminal 3.  Cathay Pacific, Singapore Airlines, Delta Airlines, KLM Royal Dutch Airlines and Emirates, all of whom had expressed initial opposition to the new policy are scheduled to move in to Terminal 3 this August.  

Source: ABS-CBN News and eTurboNews