Philippine Airlines will submit next month a revised proposal to the government to build a new passenger terminal at the Nayong Pilipino complex, a top executive said Tuesday.
PAL president and chief operating officer Jaime Bautista said the flag carrier would propose the revised terms of lease contract with state-run Philippine Amusement and Gaming Corp. for the use of its property by the end of November.
Bautista said the current lease contract with Pagcor only allows the airline to use the property for aircraft parking at a lease price of P40 per square meter.
“If we will use it for other purpose, of course we have to talk to them,” Bautista said, adding Pagcor was also open to the revision of terms of the lease contract.
Pagcor earlier said PAL was prohibited from using the leased premises for any other business or purpose including the construction of a new terminal without prior written consent.
The state-run company said PAL’s contract with a former management of the state-run gaming corporation only included the use of the rented property as “an aircraft parking ramp/apron facility.”
Pagcor said PAL was only paying a monthly rental fee of P40 per square meter for 10 hectares at the former Nayong Pilipino complex, which was disadvantageous to the government.
PAL’s contract will expire on July 11, 2033.
PAL earlier submitted a proposal to the Transportation Department to build a P20-billon new passenger terminal beside Centennial Terminal 2, its current hub at the Ninoy Aquino International Airport to accommodate more passengers.
PAL’s proposed terminal would be designed to handle 12 million to 15 million passengers a year and would have aerobridges capable of serving 12 to 17 wide-bodied and single aisle jets.
Construction of the new terminal was expected to start by December 2020 and would be operational by July 2021.
Naia Terminal 2 which PAL had been using exclusively since 1999 now accommodates passengers beyond its maximum capacity. Terminal 2 was originally built as a domestic airport terminal during the Ramos administration.
Naia’s four terminals are hosting 42 million passengers a year, 12 million or 40 percent more than their designed capacity of 30 million.
PAL said constructing a new, 89,000-square-meter air terminal north of Naia 2 would help decongest the airport and provide PAL passengers much-deserved space, amenities and modern conveniences.
The proposed annex building will rise on a 16-hectare area adjacent to Naia 2, encompassing the now-defunct Philippine Village Hotel, the former Nayong Pilipino complex and a property owned by Pagcor.
Aside from the passenger terminal, the complex will include multi-level parking for 1,000 vehicles, a new cargo terminal and ground service facilities.