Aquino creates group to study NAIA terminal fee integration, exemption

Citing concerns of those exempted from terminal and airport fees, President Benigno Aquino III, through a memorandum order, has ordered the creating of a technical working group (TWG) to study the integration of the international passenger service charge (IPSC) in the cost of airline tickets.

Memorandum Order no. 84, signed by Executive Secretary Paquito Ochoa earlier this month, was released to media on Tuesday afternoon.

It said that while the integration of the terminal fee for the Ninoy Aquino International Airport (Naia) helps decongest terminals, “there are concerns, particularly of those exempted by law from the payment of terminal and airport fees, that the integration of the IPSC in the cost of the airline tickets, while subject to refund, may cause inconvenience and unnecessary burden to them.”

The integration of the P550 terminal fee in NAIA was implemented earlier this year despite pending cases in court. Workers groups have pointed out that OFWs are exempted from paying travel tax and airport terminal fees under the Migrant Workers’ Act of 1995.

READ: MIAA integrates P550 terminal fee in airline tickets despite court cases

The TWG will also determine the possible use of information technology-based solutions to “immediately identify IPSC-exempt passengers purchasing tickets, averting the payment of the IPSC at the point of sale.”

It will be composed of the Executive Secretary, who shall serve as the chairperson, and representatives of the private sector (two individuals) and of the following agencies: Department of Transportation and Communication, Department of Labor and Employment-Philippine Overseas Employment Administration, Department of Tourism, Department of Foreign Affairs, and the Manila International Airport Authority.

The group is allowed to hire consultants, advisers and resource persons while funding will come from the respective agencies.

The report should be submitted 60 days following the effectivity and publication of the memorandum, which was signed on August 3.