Decongesting Manila Airport (NAIA)

In the middle of September 2024, the New NAIA Infrastructure Corporation (NNIC) – led by the Philippine-based conglomerate San Miguel Corporation (SMC) - took over the management and operations of Manila's main airport – the Ninoy Aquino International Airport (NAIA). As part of the deal, NNIC has also taken on the daunting task of making upgrades, and to improve the overall passenger experience at the airport. With its ambitious plans, NNIC also must address a recurring problem at NAIA of the crowding and congestion – both within the passenger terminal buildings and above in the skies - at the Philippines' busiest airport. For years it has been the topic of complaints among travelers and as a result, it has negatively affected the reputation of NAIA. As NAIA continues to see a trend of post-pandemic growth in passenger traffic, NNIC has laid out its plans and taken steps to address the long-standing problems at the main international gateway to the Philippines.

Image: Aerial view of Manila Airport/NAIA (Image Credit: Wikimedia Commons)

The Current State of NAIA

Image: Cebu Pacific check-in area at NAIA Terminal 3

It has been known for years that Manila's main airport is operating well above its designed capacity. Reported on various Philippine and foreign media outlets, it is a topic  I have also covered on several videos already on the Flights in Asia YouTube channel. While overshadowed by other cities in Asia with more than one airport, and airports in the region that are considered among the best in the world, NAIA has suffered from the negative press along with various complaints – many of which you can find through a search on social media platforms. Some have gone as far calling NAIA the “worst airport in the world,” and its problems have also been debated in the local political scene. While you can bring up examples of airports that are much more worse than NAIA, the constant complaints and the issue of congestion and crowding have held back the Philippine capital city as an air hub in Southeast Asia.

Looking to change the public perception, passenger experiences, and more importantly to make much needed upgrades at NAIA, the Philippine government awarded the 25-year concession period for the management and operations of Manila's airport to NNIC. A consortium of several companies, the venture is led by SMC which also happens to be leading the construction of the New Manila International Airport (NMIA) project. Located in nearby Bulacan Province, NMIA is designed to be a future mega air hub for the Metro Manila area with a planned capacity of around 100 million passengers per year. Considered an airport project that would put Manila on par with its neighbors' bigger aviation hubs, it is currently expected to be completed in 2030. Tasked with both projects, SMC is in a unique position to shape the future of air travel in Manila and the Philippines.

While the airlines serving Manila and the traveling public await for the completion of NMIA, NAIA is still the main option for most travelers to/from the Philippine capital city despite its problems. Even before the COVID-19 pandemic, NAIA has been operating well above its designed capacity of around 35 million passengers per year. In 2024, NAIA reported a record high in passenger traffic serving around 51 million passengers with no signs of slowing down. Each of the three passenger terminals are operating well above their designed capacities, with Terminal 3 operating at nearly twice its designed capacity (~13 million), serving around 26.2 million passengers (2024). The airline-terminal reassignments in recent years have helped to keep the passenger numbers at Terminals 1 and 2 closer to their originally designed capacities though the numbers continue to grow.

Addressing the Congestion at NAIA

The main government agency which previously managed NAIA - MIAA - is no longer involved in the day-to-day operations of the airport. Yet the agency and other related Philippine government agencies still have an active role to help address the ongoing air traffic congestion problem at Manila Airport. Since it took responsibility of handling NAIA, NNIC has been implementing measures to improve the experience for travelers at the airport. Some of which – such as the airline-terminal reassignments - have been previously planned and were already being implemented before NNIC officially took over the operations of NAIA.

Even with the airline-terminal reassignments, the aircraft movements and passenger traffic numbers continue to grow. More flight slots will be needed to cater to the growing demand for air travel to/from Manila. Among the agencies leading the efforts to address the air traffic congestion at NAIA is the Philippine Department of Transportation (DOTr). The transport regulatory agency formed the Manila Slot Coordination Committee – a group tasked with managing the allocation of flight slots at NAIA. This group is made up of representatives from the DOTr, MIAA, the Civil Aviation Authority of the Philippines (CAAP), and NNIC.

Among the first moves that has been announced by the Manila Slot Coordination Committee is the shift of commercial flights operated by turboprop aircraft and general aviation activities out of NAIA. With the intent to free up room for large commercial airliners, the first step - which will be implemented in May - is the reduction of general aviation flight slots from two to just one per hour. The second step is for the transfer of around 30% of commercial flights using turboprop aircraft such as ATR-72 and DeHavilland Dash-8s to Clark Airport just north of Manila. This move will impact airlines such as Philippine Airlines' PALexpress, Cebu Pacific's CebGo, AirSwift, Island Aviation, and newcomer Sunlight Air. 

Image: A Sunlight Air ATR-72 taking off at Manila Airport/NAIA

Another move that the NNIC has made was to demolish the now former Terminal 4 – located at the northwest end of NAIA's Runway 13/31. NNIC previously closed Terminal 4 for upgrade work before the end of 2024, and scheduled its reopening in February 2025. However, the plan changed and the structure – the oldest of the airport's passenger terminals which was used for domestic turboprop operations – was demolished. In a report by GMA News, NNIC General Manager Lito Alvarez cited safety reasons for decision to demolish Terminal 4 which was influenced by the tragic crash of Jeju Air 7C2216 at Muan Airport in South Korea before the end of the 2024. Alvarez was quoted speaking in Tagalog and when translated to English he said: “The NAIA Terminal 4 will no longer be continued since we deem it as big hazard, an obstacle.”

Image: The former Manila Airport/NAIA Terminal 4 (Image Credit: Wikimedia Commons)

While NAIA's main and longest runway – Runway 6/24 – is used for most takeoffs and landings – Runway 13/31 is used by smaller aircraft including narrowbody Airbus A320s/A321s. Arrivals of the narrowbody jets on the shortest of the two runways at Manila Airport can take place during late evening/early morning hours. Terminal 4 – located at the end of the runway – presented a similar obstruction. Alvarez and NNIC did not want a similar incident of an aircraft overrunning the runway and striking a solid structure. With Terminal 4 demolished, a replacement is expected to be opened at the location of the former international cargo building.

In addition to the replacement of Terminal 4, NNIC is proceeding with its plan to open a new terminal building at the airport – Terminal 5. The new Terminal 5 will be located next to the current Terminal 2 in an area currently occupied by the now abandoned Philippine Village Hotel. Now with the property rights of the hotel – which was abandoned for two decades – the building is scheduled to be demolished within 5 months then construction will start for Terminal 5. With an intended capacity for 35 million passengers, the construction of Terminal 5 is expected to take place during the next 2-3 years. So far there is no indication of any airline or flight assignments – domestic, international, or both – for the future addition to the airport.

Image: The former Philippine Village Hotel located next to Manila Airport/NAIA Terminal 2

Decongesting Manila

As great as a new terminal building and improved experiences at NAIA are, the underlying problem is more capacity and flights will continue to add to the crowding and congestion at the Philippines' main air hub. When it comes to aviation, the Philippines has been, and still is Manila-centric. Manila is both the political and financial capital of the Philippines, and the preferred home of the local airlines. Any foreign airline looking to enter the Philippine market with few exceptions would be wise to launch flights to Manila. While there are alternative international entry points into the Philippines such as Cebu and Clark, both emerging air hubs still do not have the large domestic and international network and the number of flights to popular destinations that NAIA has. With NAIA continuing to bear the pressure of being the primary gateway to the country while operating beyond its capacity, more urgency is being placed on SMC to open the New Manila Airport as soon as possible.

Unless there are further delays, the traveling public will have to wait at least a few years for the highly anticipated New Manila Airport. While waiting, it may be time to put more effort into shifting more flights away from Manila. In recent years, local and foreign airlines have opened up new domestic and international routes from secondary Philippine cities such as Cebu, Clark, Davao, and Iloilo. As result, the domestic network has also improved with more point-to-point travel options while reducing the need to connect to Manila for international travel. The Philippine government and the airport operators could look to further develop the route networks of the country's secondary airports with incentives for airlines such as reduced or waived fees for new routes or additional flights.  

Incentives from the government or an airport operator is never a guarantee for a new route to be a success. What is more important for the Philippines is expand travel opportunities while waiting for the New Manila Airport to open, which hopefully would boost demand for them. Opening new routes would also reduce the need to make a connection in Manila for international travel. As new flights are added at other airports in the Philippines, several airports in the Philippines serving both international and domestic flights such as Davao and Iloilo may need upgrades. Investments to expand or open new facilities – including the separation for international and domestic flights – to handle future growth should also now be planned if not already.

An Important Part of Philippine Aviation 

While the traveling public awaits the construction and opening of the New Manila Airport and the upgrades at NAIA, there is a possibility the Metro Manila area could be served by up to four airports. Along with the SMC-led duo of NAIA and NMIA, there is also the Sangley Airport in Cavite and Clark. Some have raised questions about the future of NAIA, bringing up the idea of closing NAIA and redeveloping it to a new residential and commercial district.  With an estimated worth of PHP 6 trillion for the 600 hectare property, it could also be argued it would be a better investment to keep it open. With NAIA's location and SMC investing in its future, NAIA can continue to be a strategic part of the future airport system of Manila.

Unlike Sangley, Clark, and NMIA, NAIA is the closest to the main business districts of Metro Manila – Bonifacio Global City (BGC), Makati, and Mandaluyong. While most international and domestic flights could be shifted to NMIA when its done, NAIA could then be re-positioned to serve select domestic and regional flights. These routes could see limited services – maybe 1 or 2 flights per day for each airline - to major Philippine cities such as Cebu, Davao, and Iloilo, and regional business hubs such as Singapore, Hong Kong, Seoul, and Tokyo. Private aviation operators could also use the airport as the location which would be very convenient for their clientele. NNIC could then limit flight operations to mostly during the day with a few hours during the morning and evening.

As NAIA and the Philippine aviation industry continues to see growth in passenger traffic, many continue to wait patiently as SMC is now in a unique position to shape the future of the Philippine aviation experience. The Philippine conglomerate has been entrusted with two tasks - managing NAIA while also building and operating what will be the future mega air hub of Metro Manila. While waiting for the opening of NMIA, moves could be made to shift some of the current air traffic to other airports and cities in the Philippines. More possibilities will be open when NMIA opens, but for now Manila and SMC must manage with what it currently has. 

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