No end in sight for Ninoy Aquino T3 dispute

Gavin Lipsith

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DFNI Asia understands that Philippines carrier Cebu Pacific has denied it will start flights from the ill-fated third terminal at the end of the month

Sources with interests in the new facility told DFNI Asia that there would be "no semblance" of a commercial offer at the airport within two weeks as construction on outlets has not yet started. One retailer reported that it was in the process of talking over plans with suppliers and was hoping to have space ready to open by the last quarter of 2006, if the process is not stalled as a result of ongoing compensation claims from former terminal owner PIATCo and its majority partner Fraport Group.

PIATCo and Fraport are seeking compensation after the Philippines government summarily cancelled a management contract for the terminal once it had been built and decided to operate the terminal itself. The move has already been ruled illegal by courts and the matter of compensation is the only outstanding issue.

DFNI Asia says: It is hard to say who will be more frustrated by the prolonged delays to the opening of Ninoy Aquino T3. Fraport and PIATCo, which only invested in the construction of the terminal so they could reap the rewards of managing it, or Duty Free Philippines and its concessionaires, which are awaiting the huge opportunity that brand new commercial space will afford.

But even if news of the soft opening were true it would make little difference to anyone until the compensation issue is resolved – retailers may be willing to risk investing in their space in order to ensure a profitable operation if the facility does open, but airlines would not be willing to move into a terminal that may be closed at any moment. Neither Cebu Pacific nor any other airline will move to the new facility unless the government can offer them a firm contract, and that cannot happen until the legal dispute ends. Until Fraport is compensated by the Philippine government, any such announcements amount to little more than political posturing.