Mactan airport to start collecting hiked terminal fee on Nov. 1

October 31, 2014 6:37 am 

CEBU CITY, Oct. 30 — The Mactan Cebu International Airport Authority (MCIAA) will start collecting the increased passenger service charge (PSC), more commonly known as the terminal fee, on November 1.

MCIAA general manager Paul Villarete, who appeared before the Cebu City Council Wednesday, said the airport authority cannot heed the council’s request to delay the increase.

But Villarete said the increase for departing domestic passengers will be staggered.

MCIAA will be increasing the PSC for domestic flights from P200 to P300, and P550 to P750 for international flights.

But it is only for international flights that the full increase will be immediately implemented on November 1.

Of the planned P100 increase for domestic passengers, only an additional P20 will be implemented for a new rate of P220.

The remaining P80 will be implemented in January 2016 yet.

Earlier, the Cebu City Council requested that the increase be put on hold because it will discourage passengers and tourists from flying through Cebu.

Villarete told the council it will be difficult to defer the implementation of the PSC increase because it is already part of the concession agreement that the Department of Transportation Communications, MCIAA and GMR-Megawide signed last Sept. 22.

The increase is supposed to cover MCIAA’s projected drop in its revenues from P1.5 billion to P500 million, as a result of the privatization of its terminal operations, starting on Nov. 1.

The GMR-Megawide Cebu Airport Corp., which has been awarded the contract to upgrade the Mactan airport, will take over the terminal operations.

They will start constructing the new terminal in early next year, which is projected to cost some P17.5 billion.

The consortium paid P14.4 billion as its winning bid. (PNA)

LAP/EB/

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