Gokongweis team up Gotianuns to manage three airports 

The Gokongwei and Gotianun families are teaming up anew for a P16-billion offer to take over the Davao, Bicol and Siargao airports, a project that could spell the difference for air travel in the regions, according to a report by Philippine Star.

The Philippine Regional Airports Consortium is seeking the government’s approval to bundle the Francisco Bangoy International Airport in Davao, Southern Luzon International Airport in Albay and the Sayak Airport in Siargao into one public-private partnership (PPP) deal.

The consortium is proposing to invest P16.05 billion for the upgrade of the airports, in exchange for 30-year control in Davao and Albay and a 15-year concession in Siargao.

Information provided by the PPP Center showed that the consortium is led by the Gokongweis’ JG Summit Infrastructure Holdings Corp. and the Gotianuns’ Filinvest Infra-Solutions Ventures Inc. They are joined by the Asian Infrastructure and Management Corp. in the proposal.

If the government approves the offer, the proponent will raise the passenger and cargo capacities of the airports by building new facilities and renovating existing ones. Likewise, there are plans to expand the runway of the Siargao airport to make it capable of landing jetliners.

The investments will drive up the passenger capacity per year of the airports to 13 million for Davao, 3.2 million for Bicol and 1.2 million for Siargao.

The PPP Center confirmed that the proposal has passed the completeness check and is now up for detailed evaluation by the Civil Aviation Authority of the Philippines (CAAP) and the Davao International Airport Authority.

This is the second time the Gokongweis and Gotianuns are joining forces on aviation, the first of which is in the operations and maintenance of the Clark International Airport.

The Francisco Bangoy International Airport is the busiest airport in Mindanao, and third busiest across the country. The Southern Luzon International Airport is the biggest gateway in the Bicol Region, while the Sayak Airport leads tourists to surfing haven Siargao.

The country’s largest carriers view the proposal as an important step to reducing flying costs to the benefit of travelers. Cebu Pacific president and chief commercial officer Alexander Lao said making airports jet-capable improves flight efficiency and, in turn, results in lower fares.

“The development of jet-capable airports allows for the operation of larger aircraft which reduces the cost per seat and enables even more affordable fares for every Juan,” Lao told The STAR.

This is especially crucial for the Sayak Airport, which right now can only handle turboprops that are limited to ferrying about 80 passengers.

Currently, Cebu Pacific operates one of its hubs in Davao, and it reaches Bicol from Manila and Cebu, as well as Siargao via Clark, Cebu and Davao.

AirAsia Philippines CEO Suresh Bangah said the proposal will support air travel across Luzon, Visayas and Mindanao. He pointed out the upgrade of any regional airport not just boosts travel, but makes cities and towns more viable for business as well.

“AirAsia Philippines fully supports any effort to grow tourism while driving economic growth. We see this opportunity as a way to further deliver our brand promise of providing accessible and reasonable value for every Filipino,” Bangah told The STAR.

However, Bicol Saro party-list Rep. Terry Ridon said the Bicol airport is better off run by CAAP for the meantime since it was just opened in 2021.

“Unless the private sector will pay the government the actual depreciated cost of constructing the airport, then it might be better off operated through CAAP in the near and medium term,” Ridon told The STAR.

Transportation Secretary Vince Dizon is employing a new approach in privatizing the operations and maintenance of airports, bundling them into groups to enhance their value.