An entity called New NAIA Infrastructure Corp (NNIC), a consortium led by San Miguel Corp (SMC), will on Saturday (September 14) take over operations at Ninoy Aquino International Airport, known as NAIA, the main air hub for the Philippine capital, Manila.

The SMC-led consortium will also start working on a PHP170.6-billion (US$3.02-billion currently) revamp of the country’s main gateway for air travellers.

The new operator announced on Monday plans to reassign operations – over a period of three years – at the airport terminals, as well as some initial revamp work.

According to the proposal, NAIA’s Terminal 2 will only handle domestic flights. Terminal 1 will be used exclusively by flag carrier Philippine Airlines for its international flights.

All foreign airlines will operate at Terminal 3, which will also host the international connections of Cebu Pacific and AirAsia Philippines.

AirAsia Philippines domestic flights will be moved to Terminal 4, said NNIC general manager, Angelito Alvarez.

Speaking at the first edition of an “Aviation Forum” organised by the Economic Journalists Association of the Philippines and SMC, Mr Alvarez said the target – in four to five years – was to expand the airport’s capacity to 62 million passengers annually, from the current 35-million passengers design capacity.

NNIC also aims to increase the runway hourly capacity from 42 air traffic movements to 48 within the first four to five years of taking over operations at NAIA.

He said the current operations of NAIA would not be disrupted, as changes would be implemented gradually.

Other plans in the short term include improved retail and food and drink outlets, repair of existing infrastructure, and road expansion to the airport.

Mr Alvarez also said the plans include an expansion of Terminal 2, easier connection between the terminals, as well as a connection from Terminal 3 to Metro Manila Subway.

The terminal fee at NAIA is expected to go up next year, while other airport fees like landing fees and take-off fees will also be implemented soon, according to NNIC representatives. The new operator said the government had approved the terminal fee hike before the bidding of the NAIA modernisation programme.

At the same event, Department of Tourism undersecretary Verna Buensuceso said that the modernisation of NAIA would help boost the country’s tourism sector.

“These are new developments that we welcome very much to be able to open up new destinations and markets for us,” she said, as quoted by the official Philippine New Agency.

The Philippines aims to draw 7.7 million foreign visitors this year after exceeding its 2023 arrivals forecast.