PAL pursuing its proposed NAIA-2 passenger terminal

Flag carrier Philippine Airlines (PAL) is unfazed by legal issues surrounding its lease contract with the Philippine Amusement and Gaming Corp. (PAGCOR) and will pursue the construction of its proposed passenger terminal.

The airline envisions the terminal to rise in a sizable piece of land owned by PAGCOR at the Ninoy Aquino International Airport Terminal 2 (NAIA-2).

"We are now finalizing a proposal to the MIAA (Manila International Airport Authority) and DOTr (Department of Transportation)," PAL president and COO Jaime Bautista told reporters in a press conference during the Philippine Aviation Day in Makati City on Friday.

"Whatever issue is in the PAGCOR property, this should be resolved if our proposal is accepted by the DOTr," Bautista noted.

In August, Bautista announced that the flag carrier is proposing to build a new passenger terminal at an estimated cost of P20-billion.

PAGCOR, however, said the airline cannot use the property for any purpose other than aircraft parking facility as stipulated in the lease contract.

The gaming regulator emphasized that PAL is not the absolute owner of the property.

But the airline said it was inconsistent with provisions of the lease contract.

Bautista said the legal issues will be addressed separately by PAL and will not affect its plan to submit the proposal.

"It's a separate issue ... We are submitting our unsolicited proposal before the end of the year," he said.

Building another passenger terminal was not about expanding PAL's passenger volume, Bautista noted.

"The reason why we are proposing that terminal is for us to be able to extend good service to our passengers. Right now, the four terminals here in Manila has a rated capacity of 30 million but we are servicing already 42 million. I think that is the maximum that these airports can service," the PAL official said.

Bautista noted the proposed terminal will have an additional capacity of 12.5 million passengers per year, and not solely for PAL's exclusive use. "It's open for other airlines that can be accommodated," he said.

"We are expecting to spend around $350 to $400 million. We are proposing it will be for international operations as the existing Terminal 2 is for domestic," he added. — VDS, GMA News