PHILIPPINES: Terminal Fees With Airline Ticket Prices For Intergration

THE Philippines Department of Tourism (DoT) disclosed earlier this week that major airlines operating in the country have agreed, in principle, to the integration of terminal fees into departing passengers’ airline ticket payments.

DoT secretary Wanda Teo said the consensus transpired during the third consultation meeting held at the NTO’s headquarters, attended by officials of the Civil Aviation Authority (CAAP) and airline executives.

If all goes to plan, the domestic passenger service charge (DPSC), commonly known as the terminal fee, will be collected by airlines as part of ticket payments in an effort to ease the queuing and delays at Philippine airport terminals.

“We are working together with the different airlines and our partner government agencies in making it easier for the traveling public. And we do that by integrating the various fees that are collected,” said DoT undersecretary for development planning, Benito Bengzon Jr.

He noted, however, that adequate lead time is required before getting the word out, which includes at least a month for IATA to prepare to ensure "the level of acceptance and support would be higher”.

But local air carriers and the CAAP board must first agree with the terms and conditions in the memorandum of agreement presented by the DoT.

“Hopefully, once we finalise the memorandum we can have the principals all sign the document, and we can make that big announcement, which I am sure the traveling public would appreciate,” Bengzon added.

Local carriers, including Philippine Airlines, Cebu Pacific, Sea Air, SkyJet, Air Juan, and AirAsia are expected to submit the draft memorandum of agreement in time for CAAP’s board meeting to be held next week.

If approved, the plan would be implemented at all airports under the CAAP’s management. There are 81 CAAP terminals, but only 38 of which are performing commercial operations and collecting terminal fees.

“These initiatives address the long-standing choke points that beset tourism growth, such as physical airport capacity, travel facilitation and passenger mobility,” commented Teo.