Manila T3 opening delayed as retail talks continue

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Philippine president Gloria Macapagal Arroyo has ordered the cancellation of the opening of the capital's Ninoy Aquino International airport terminal 3 on December 15, citing incomplete safety systems

"The opening of the airport cannot be undertaken on December 15," said a presidential spokesperson in a press briefing yesterday. According to the government there is no specific date scheduled for the official opening but it could be in February 2003 if the necessary safety approvals are given. The president's decision was based on recommendations from the Transportation Secretary and the Air Transportation Office who said several aviation safety requirements had not been provided by terminal management company Philippine International Air Terminals Co (PIATCO). The transfer of airlines from terminals 1 and 2 is also expected to take several months and the issue of PIATCO's exclusive control over duty-free shop operations is still hanging in the balance.

As first reported in Duty-Free News International, a dispute between the government and PIATCO is continuing on several fronts -including PIATCO's control of retail revenues, its interlocking shareholdings and debt guarantees for the project. In recent statements Frankfurt Airport Services Worldwide (Fraport), the main PIATCO shareholder, has said it is preparing to take legal action against the government. Fraport said it wants to transfer its financial commitment in the project back to the government, and is seeking a fresh management contract. But other PIATCO shareholders are blocking the move. Fraport executive board chairman Wilhelm Bender said last month in an interview with the Frankfurter Allgemeine Zeitung newspaper that the German operator would not be afraid to bring the government "back on the path of honouring legal contracts".

He said: "The government is questioning the validity of contract agreements we signed with the previous government in 1999. As a result, funding of the project is no longer economically viable."

Meanwhile the government has also proposed another important element of funding, the $20 departure tax for passengers, should change to $11. The relocation of Philippine Airlines to the new terminal has also become more uncertain. TRW understands Fraport has withdrawn its commercial team handling the retail operations.