Philippine Airlines (PAL) will now be measured against a set of service-level targets at the country’s main gateway, after signing an Airport Use Agreement (AUA) with New Naia Infra Corp. (NNIC) that makes the flag carrier’s operational performance a contractual obligation rather than a matter of practice.
The agreement-the first standardized deal of its kind between NNIC and an airline since the private consortium took over the Ninoy Aquino International Airport (Naia)-embeds key performance indicators (KPIs) covering the airline’s use of terminal facilities and infrastructure, and spells out the respective responsibilities of carrier and airport operator.
It also carries mechanisms for addressing persistent failure to meet the agreed standards.
Those benchmarks are calibrated to the service levels NNIC itself must deliver under its concession agreement with the government, effectively pushing the operator’s own obligations down the chain to the airlines that account for the bulk of traffic at the gateway.
NNIC said it intends to use the PAL agreement as the template for similar arrangements with other carriers at NAIA, a move that would extend a uniform performance regime across the airport’s airline tenants.
‘This agreement gives us a clearer framework for setting expectations, measuring performance and working together to maintain consistent service standards,’ NNIC President and CEO Ramon S. Ang said. ‘That is important to making airport operations more efficient and dependable.’
Lucio Tan III, president and COO of PAL Holdings Inc., the listed parent of the flag carrier, said the arrangement works in favor of both parties and, ultimately, the traveling public.
‘This is a positive development for both PAL and NNIC, and ultimately for our passengers. It supports the continuing modernization of NAIA and our collective goal of delivering a better airport experience.’
The framework targets a structural weakness in airport operations: a single flight depends on several organizations performing their roles on time and in sequence, with no single party holding the others to account.
Delays in check-in, boarding, baggage handling, ramp operations or aircraft turnaround do not stay contained. They cascade into succeeding flights and, at a facility operating near capacity, into the wider airport operation.
By establishing common performance requirements and clearer lines of accountability, NNIC said it will be better positioned to monitor service levels, pinpoint where operational problems originate and compel corrective action.
The operator is applying the same approach to its agreements with ground handling and other service providers, setting operating requirements for companies performing critical functions on behalf of airlines inside the airport.
These arrangements are aligned with existing government regulations and NNIC’s obligations under the Naia concession.