Updating operations and costs

Disruptions can produce beneficial effects.

- BOO CHANCO

Even the absolutely disruptive Elon Musk operation to cut down the Federal bureaucracy will uncover instances of abuse or outdated staffing and programs that had been going on for years.

When San Miguel Corp. (SMC) took over NAIA management, they uncovered many long-neglected problems. The parking area is a good example. It was always difficult to get parking space at Terminal 3 and the new management found out why. There were cars abandoned for years and the parking rates were so low that the residents of nearby condos used the airport for overnight parking. After the right moves were made, it is a lot easier now to find parking there.

Sweetheart deals were uncovered on rentals or leases that drastically reduced potential income for the airport. A government corporation leased land from the airport authority which it was subleasing at tremendous profit. They have three lease contracts; the first is for 20,000 square meters at a ridiculous 20 centavos per sqm and subleased to Cebu Pacific for P314 per sqm. The second is for 2,555 sqm, leased at 20 centavos per sqm and subleased to Airbus Helicopters for P309 per sqm (hangar), P103 per sqm for ramp and P361 per sqm for office space. Another contract is for 5,723 sqm at 60 centavos per sqm.

These extremely low lease rates remained unchanged since 1974 or for 50 years. Just imagine how much money MIAA lost through the years for those highly commercial lots on Domestic Airport Road. Market rates should have been charged with no exceptions.