NAIA Terminal 5 to be built in Philippine Village Hotel site

New NAIA Infra Corp. (NNIC) is set to reorganize the terminal assignments of foreign and domestic carriers following the completion of the Ninoy Aquino International Airport (NAIA) Terminal 5 to improve efficiency, according to a report by Manila Bulletin.

Manila International Airport Authority (MIAA) General Manager Eric Ines said the private operator of the country’s main gateway aims to serve more than 60 million passengers annually.

Ines said NNIC is looking to significantly improve the terminals and the efficiency of runway use to accommodate more flights, which will bring an influx of passengers from around the world.

He told reporters that this plan is underway, as the San Miguel Corp. (SMC)-led consortium is currently demolishing the long-abandoned Philippine Village Hotel in Pasay City to clear the area where Terminal 5 will be built.

Construction is expected to begin immediately after demolition is completed, with initial operations scheduled to commence within two to three years.

NNIC President Ramon Ang earlier said that Terminal 5 will handle approximately 35 million passengers annually.

Ines, who heads the agency regulating NAIA, stated that the terminal will be the new home for domestic carriers, alongside Terminal 2.

He said Terminal 1 will be intended for low-cost international carriers, while Terminal 3 will be utilized for full-service foreign airlines.

Currently, Terminal 1 handles international flights, Terminal 2 serves domestic flights, and Terminal 3 accommodates both local and international operations.

NNIC’s plan to expand airport capacity aims to capitalize on the steady growth of foreign carriers launching direct flights to the Philippines.

Air Canada recently launched non-stop flights between Manila and Vancouver, while Air India will begin direct flights from Delhi to Manila in October.

With the ongoing improvements at NAIA, Ines said several foreign carriers have expressed interest in launching flights to the Philippines.

Last year, a record 50.1 million passengers used the country's main gateway, representing a 10 percent increase from the 45 million passengers in 2023.

The MIAA chief expects this year to smash the record, with the daily influx of passengers averaging between 150,000 to 160,000 compared to last year’s 130,000.

“That's why kahit na punuin mo man ‘yung immigration magkakaroon pa rin ng pila, bottleneck pa rin (That’s why even if you fully staff immigration, there will still be lines, there will still be a bottleneck). The only thing you can do is really widen the entire area,” said Ines.

NNIC, which took over operations and maintenance of NAIA in September 2024, has committed to spending over %u20B1170 billion to elevate the airport to world-class standards.

Since then, the operator has been ramping up major improvements to rehabilitate and upgrade NAIA, which was once tagged as the world’s worst airport.