Aboitiz InfraCapital to Modernize Laguindingan Airport

Aboitiz InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz Group, is prepared to take on the challenge of modernizing its second Philippine gateway following the signing of the concession agreement to upgrade, operate, and maintain Laguindingan International Airport located in Misamis Oriental.

“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 Chief Executive Officer.

“Laguindingan is the gateway to Northern Mindanao, and a good airport will mean a broader business base for Laguindingan and Misamis Oriental. We are more than ready to take Laguindingan International Airport to new heights,” Canilao added.

Laguindingan International Airport is the first successful airport public-private partnership project awarded via unsolicited bid under the current administration.

Renovations & expansions

Under the P12.75 billion concession agreement signed in Malacañan Palace last October 28, 2024 by Canilao, Department of Transportation Secretary Jaime J. Bautista, and Civil Aviation Authority of the Philippines Director General Captain Manuel Antonio L. Tamayo, AIC will undertake the development and modernization of Laguindingan International Airport over a 30-year period after the official turnover in April 2025.

This includes renovating and expanding the passenger terminal, installing modern equipment, and enhancing airside and landside facilities. These improvements aim to significantly enhance passenger experience, boost operational efficiency, and elevate safety and security standards at the airport.

“We see potential in international flights and want to work closely with the airlines in realizing this dream. We will also work closely with our tourism stakeholders to see how we can further market the offerings of Misamis Oriental and develop a longer-term roadmap. Further, we want to work closely with local and international stakeholders to induce a collaborative and conducive environment for investors,” AIC Vice President and Head of Airports Business Rafael M. Aboitiz said.

Meanwhile, expansion plans will be undertaken in two phases, increasing Laguindingan International Airport’s design capacity from the current 1.6 mppa to 3.9 mppa for the first phase and up to 6.3 mppa for the second phase, depending on traffic demand.

Building transformative airport ecosystems

Laguindingan International Airport aligns with AIC’s vision to develop transformative infrastructure ecosystems that strengthen the Philippines’ connectivity, leveraging the Aboitiz Group’s expertise in infrastructure and technology to drive sustainable growth.

“The progress we see today directly results from a government that focuses on what really matters. We believe the government’s role is to regulate and ensure the best solutions are in place to serve the public — and we in the private sector are here to do our part in helping achieve that both operationally and financially,” said Sabin M. Aboitiz, Aboitiz Group President & CEO.

Laguindingan International Airport, the country’s sixth-busiest airport and Mindanao’s second-busiest gateway after Davao City’s Francisco Bangoy International Airport, will be the latest addition to AIC’s growing airports portfolio and marks a significant milestone in AIC’s strategic expansion in the aviation sector.

“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,” President Ferdinand R. Marcos, Jr. said in his speech at the ceremony.

“This vision can only be realized through our united efforts and steadfast commitment to work together to work hand in hand. With that, this administration extends our gratitude to the supportive and visionary partners in the private sector, particularly Aboitiz InfraCapital, Inc.,” President Marcos, Jr. added.

AIC is known for operating the award-winning Mactan-Cebu International Airport (MCIA), which has set new benchmarks for airport operations in the Philippines and whose Terminal 2 recently received a prestigious 4-star rating from globally renowned aviation consultancy Skytrax.

Earlier this year, MCIA unveiled several key best practices, including the Silent Airport plan, seen to mitigate noise pollution and foster a serene atmosphere for travelers; the operation of Bridge-Mounted Equipment consisting of fixed-power units and pre-conditioned air units services that cut fuel costs and reduce carbon emissions; and Cebu Connect, MCIA’s airport transfer service designed to facilitate efficient and seamless inter-airport transfers, giving travelers a more convenient travel and enjoyable experience.

MCIA also recently partnered with Airports Council International Asia-Pacific & Middle East to develop a comprehensive framework of environmentally sustainable initiatives to achieve MCIA’s Net Zero emissions goals.