Why is SMC's New NAIA allowed to jack up overnight car park fees?

The downside of privatization

Many people who regularly fly out of NAIA, such as aircrew and passengers and those employed at NAIA, were probably having a nice dinner last night when a supposed memo circulated on social media. Apparently, the Halloween shocker came one month early.

In said memo, San Miguel Corporation's New NAIA management (which took over operations about two weeks ago) outlined the new parking fees for all the terminals with car parks, such as T1, T2, and T3.
For short-term parking, a car will be charged PHP 50 for the first two hours and then PHP 25 for every succeeding hour or part thereof. For motorcycles, it'll be PHP 20 for the first two, then PHP 10 for every succeeding hour.

The true shock came with overnight parking, as San Miguel intends to charge PHP 1,200 for overnight parking of cars, PHP 480 per motorcycle, and PHP 2,400 for a bus. While we are unfamiliar with the existing bus overnight parking rate, the jump in overnight automotive parking rate is 4x compared to the existing PHP 300.

Many voiced their concern and comments on the price gouging, er, price increases online. Of particular concern is the increase in parking fees for those working in NAIA; if you report for a typical 8-hour shift, you'll effectively have to pay 9 hours which will be PHP 225 if you drive, or PHP 90 if you ride.

And then there's the overnight parking of PHP 1,200 for cars. Airport overnight parking is something used by aircrew and passengers that do not have the convenience of relatives to drive them to and from the airport. That means for a typical 4D/3N trip abroad, you'll be paying about PHP 3600 to 4800 on parking alone. The terminals also havs zero direct train access unlike other nations, so to avoid paying an exorbitant fee you'll be driven (no pun intended) to take a taxi or Grab.

So where or how did NAIA come up with such a fee if the memo is legitimate? Some said they reached out to SMC management and said that there would be a statement soon, but we can already figure out where: the AO.

The memo erroneously stated Manila International Airport Authority (MIAA) Administrative Order (AO) 1 series of 2004 instead of 2024. In the correct memo, Part 5, Sections 1-3 outlines the adjusted entry fees for the first 2 hours, but then freely gives the airport operator carte blanche to dictate any fees beyond the first two hours.

Section 2.1 from order reads: "...Airport Operator is free to charge for vehicle parking after the first two hours on a commercial basis."

The result is the fee for overnight parking. Perhaps the motivation was to reduce overnight parkers at the airport, but those who do park there for their trips find it to be the only practical option. Now it's made impractical. It also clearly indicates the big downside of privatization: it now becomes for profit instead of public service. There is no check and balance or even public consultation with stakeholders on the potential effects of any decisions that management makes.

We imagine legislators are going to start taking a look at these rates more closely and see if a hearing is in order. There should be, as the increases aren't just parking; there are big cost increases across the board for aircraft as well as outlined in MIAA's AO. Such increases will likely cause every airliner's fares to soar.