UNINFORMED CHANGES: Business Group, Think Tank Decry Sudden Iloilo Airport Fee Hike

By Rjay Zuriaga Castor and Francis Allan L. Angelo

The Philippine Chamber of Commerce and Industry–Iloilo Chapter Inc. has raised concern over the abrupt changes in airport and concession fees at Iloilo International Airport.

The adjustments stem from the recent implementation of Civil Aviation Authority of the Philippines Memorandum Circular No. 19-2025, which took effect nationwide and applies to all airports under CAAP jurisdiction, including Iloilo Airport.

In a statement released Monday, May 5, PCCI Iloilo called for inclusive public consultations before imposing major policy changes affecting travelers and the business sector.

“It is our hope that major policy changes affecting the traveling public and business sector—such as adjustments to airport fees—be informed by inclusive public consultations,” the group said.

“Engaging local stakeholders allows for a better appreciation of regional socioeconomic contexts and fosters transparency and public trust,” it added.

Effective April 21, 2025, the revised fees include an increase in the Passenger Service Charge for international flights from PHP550 to PHP900, along with new rates for domestic flights based on airport classification.

Previously, all domestic passengers paid a flat rate of PHP200 regardless of airport category.

Under the new structure, domestic PSCs are:

• PHP350 – international airports
  • PHP300 – principal class 1 airports
  • PHP200 – principal class 2 airports
  • PHP100 – community airports

The PSC is typically included in ticket prices and is expected to raise overall airfare costs.

Vehicular parking and other concession fees were also revised.

The new parking rates are:

First two hours:
• Buses – PHP100
• Cars – PHP50
• Motorcycles – PHP25

Succeeding hours (per hour):
• Buses – PHP50
• Cars – PHP25
• Motorcycles – PHP15

Before the pandemic, parking at Iloilo Airport cost PHP11.20 for the first two hours, with PHP5.60 per additional hour, PHP56 for 12 hours and PHP112 for 24 hours.

Impact on Public, Local Economy

PCCI Iloilo noted that the higher parking fees could burden frequent users, including business travelers, tourism operators and service vehicles.

“We understand that cost recovery is necessary, but we also trust that a balance can be pursued to reflect fair value and public interest—especially given the current economic environment,” it said.

The group warned that sudden increases could hurt Iloilo’s appeal as a destination for investment and tourism.

It urged dialogue among CAAP, the Department of Transportation, airport authorities and local stakeholders to clarify the policy’s basis and consider more reasonable, tiered fee structures.

“PCCI Iloilo remains committed to supporting national infrastructure efforts while ensuring local considerations are thoughtfully integrated,” it added.

CAAP said the fee increases reflect inflation and rising operational costs, with the last adjustment made in 2015.

Think Tank Seeks Suspension of Fee Hike

Meanwhile, the Iloilo-based Institute of Contemporary Economics has called on the Department of Transportation and CAAP to suspend the new fees, citing lack of public consultation and serious socioeconomic consequences.

In a statement issued Monday, ICE decried the “unilateral imposition” of increased charges, including the PSC hike, without consulting stakeholders in Iloilo and other CAAP-served areas.

“No public consultations were conducted for stakeholders affected by the revised fees at Iloilo International Airport,” ICE said, citing CAAP’s April 14 memo.

The group argued that the absence of engagement violates Article XIII, Section 16 of the 1987 Constitution, which upholds the right to “effective and reasonable participation” in economic decision-making.

ICE also pointed to violations of Administrative Order No. 31, series of 2012, and the DOF-DBM-NEDA Joint Circular No. 1-2013.

These regulations require agencies to weigh service cost recovery against the socioeconomic effects of higher fees.

“In the determination of rates, a balance between recovering the costs and the socioeconomic impact of their imposition shall be sought,” ICE quoted from the policy.

ICE said the changes ignore the inflationary burden on Iloilo and nearby areas and warned they could disproportionately hurt passengers and small businesses.

The think tank also said higher parking fees are counterproductive and unsafe.

It noted that current rates discourage parking inside the airport, leading more vehicles to park along the Airport Access Road and causing congestion and safety risks.

“This defeats the intended purpose of increasing the airport’s income,” ICE said, adding that reduced volume may also hurt overall parking revenue.

ICE urged the DOTr and CAAP to suspend implementation of the fee hikes and initiate a formal consultation process with Western Visayas stakeholders.

“Our call is simple,” ICE said. “Suspend implementation and talk to the community you are supposed to serve.”

CAAP manages 85 airports across the Philippines, including Iloilo International Airport, which serves over 1 million passengers annually and remains a key gateway to Western Visayas.