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Airports

Gokongwei Group Eyes More Airport Projects, Explores Private Sector Partnerships

Strategic Insights

— 1 min read

As the Luzon International Premiere Airport Development (LIPAD) Corp. expands its airport operations through the Clark International Airport, the JG Summit Holdings Inc. is poised to tap into more airport ventures. JG Summit president and CEO Lance Gokongwei sees an opportunity to leverage the group's expertise in managing malls and its airline, Cebu Pacific, to venture into the airport sector. The group is currently bidding to take over the Sayak Siargao Airport, partnering with Philippine Airport Ground Support Solutions Inc. and Asian Infrastructure and Management Corp.

Key Takeaways:

  • JG Summit Holdings Inc. president and CEO Lance Gokongwei confirms the group's interest in expanding its airport portfolio through public-private partnerships (PPPs).
  • The group is currently engaged in airport operations through the Luzon International Premiere Airport Development (LIPAD) Corp., which operates the Clark International Airport.
  • JG Summit is waiting for government approval for its P856-million bid to take over the Sayak Siargao Airport, partnering with Philippine Airport Ground Support Solutions Inc. and Asian Infrastructure and Management Corp.
  • Gokongwei believes JG Summit has the competence to manage airports alongside its aviation and property management expertise.
  • The group plans to explore more airports for potential privatization and is eyeing to expand its airport operations by partnering with other companies.
  • JG Summit has a 33-percent share limitation in any aviation project due to its ownership of Cebu Pacific.
  • Transportation Secretary Vince Dizon aims to privatize 20 airports by the end of the Marcos administration in 2028.

Statistics:

  • JG Summit's bid to take over the Sayak Siargao Airport is worth P856 million.
  • Cebu Pacific operates daily flights to Siargao from Cebu and Clark.
  • As of May, Cebu Pacific flies to Siargao from Cebu five times a day and from Clark twice daily using ATR turboprops.
  • Seven airports are currently operated by the private sector in the Philippines.
  • The government aims to privatize a total of 20 airports under public-private partnerships by the end of the Marcos administration in 2028.

Sources:

  • "Gokongwei Group eyes more airport projects" by The STAR.

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