Local carriers shelve terminal enhancement fee proposal

LOCAL CARRIERS are no longer pursuing their proposal for a terminal enhancement fee, the Civil Aeronautics Board (CAB) said, adding that carriers may explore options that do not require government approval.

- Ashley Erika O. Jose Reporter

"They are not pursuing it anymore. Because maybe they are making a judgment, there are many options for them. One is just increasing the fares by tucking it in or maybe partly absorbing (the high cost)," CAB Executive Director Carmelo L. Arcilla told reporters on the sidelines of an event last week.

Local airlines including Philippine Airlines, Cebu Pacific, and AirAsia Philippines have earlier sought CAB approval to impose a terminal enhancement fee amid higher charges at Ninoy Aquino International Airport (NAIA).

They proposed to collect a terminal enhancement fee of P150 for domestic roundtrip flights and up to P300 each way for international flights.

The airlines are seeking government approval to collect the terminal enhancement fee separately, as these will not be included in the fare.

If approved, the fee would be charged separately from the base fare and itemized distinctly on passenger receipts, similar to fuel surcharges and valueadded tax.

Mr. Arcilla said the carriers' proposal is "archived" for now, noting that the airlines have the right to increase fares to offset the high cost of operating at NAIA.