Sunday, 24 November 2024
Airports

Aboitiz expands airport portfolio with Laguindingan concession, full MCIA ownership

Infrastructure firm strengthens presence in Philippine aviation sector with back-to-back developments

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Airside view of the proposed upgrades to the Laguindingan Airport. (Photo: Aboitiz InfraCapital, Inc.)

Aboitiz InfraCapital (AIC) has secured two major airport developments this week, marking significant expansion in the Philippine aviation sector. The infrastructure firm signed a 30-year concession agreement for Laguindingan Airport and acquired full ownership of Mactan-Cebu International Airport’s operator.

The PHP12.75 billion Laguindingan agreement, signed at Malacañan Palace on October 28, grants AIC rights to upgrade and operate Mindanao’s second-busiest gateway. The project aims to increase the airport’s capacity from 1.6 million to 6.3 million passengers annually through a two-phase expansion plan.

“Laguindingan International Airport is a pivotal milestone in our strategic mission to elevate the country’s aviation infrastructure. It underscores Aboitiz InfraCapital’s commitment to providing a seamless and efficient passenger experience, and more importantly, driving economic growth in Northern Mindanao by boosting connectivity and tourism,” said Cosette V. Canilao, AIC President and CEO.

The company will begin operations in April 2025 following the official turnover. The development includes terminal renovations, modern equipment installations, and enhanced airside and landside facilities.

(From left): Civil Aviation Authority of the Philippines Director General Captain Manuel Antonio L. Tamayo, President Ferdinand R. Marcos, Jr., Department of Transportation Secretary Jaime J. Bautista, and Aboitiz InfraCapital President & CEO Cosette V. Canilao at the signing of the Laguindingan International Airport concession agreement Malacañan Palace last October 28, 2024. (Photo: AIC)

President Ferdinand R. Marcos Jr. emphasized the airport’s role in shaping visitor impressions: “For most travelers, airports provide a glimpse of what awaits them at their destination; it is an experience of its own. Air travel is already a challenge, but it is now up to us to offer seamless service so that our visitors will feel the warmth and the welcoming nature of Filipinos.”

Following the Laguindingan deal, AIC announced on October 30 its complete acquisition of the Mactan-Cebu International Airport operator. The company exchanged PHP15.5 billion in notes for the remaining shares of Aboitiz GMR Megawide Cebu Airport Corporation, building on its initial 33.33% stake acquired in December 2022.

The Mactan-Cebu facility has seen significant growth, with international traffic increasing by 35% and domestic traffic by 8% year-over-year. MCIA serves over 11 million passengers annually as the country’s second-busiest hub.

“Completing the acquisition of AGMCAC is a significant step forward in our vision to enhance the Philippines’ airport infrastructure. With full ownership of AGMCAC, we are committed to taking the airport to new heights, delivering exceptional passenger experience, and cementing its status as a world-class gateway,” Canilao stated.

The facility recently implemented several operational improvements, including a Silent Airport initiative and the Cebu Connect transfer service, which reduces connection times for both international and domestic flights.

Written by
Dirk Andrei Salcedo

An aviation enthusiast turned creator of the top aviation news portal in the Philippines, Dirk has a deep passion for everything that flies. When he's not keeping his finger on the pulse of the industry, he also volunteers with a major humanitarian organization, impacting people on the ground and in the sky.

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