Owner of Resorts World Manila Submits $4.8 Billion Bid to Control Manila Airport

Jiger955

The parent company of Resorts World Manila aims to gain partial control of the international airport in the Philippine capital, Manila. Alliance Global Group is acquiring full ownership of Philippine integrated resort-casino. Led by Chinese-Filipino billionaire Andrew Tan, Alliance is purchasing a 40% stake in the casino, formerly known as Manila Bay Resorts, from Genting Group. Alliance has high hopes for the Philippines' recovery from COVID-19. Tan believes that China's crackdown on VIP gambling operators in Macau will benefit the Southeast Asian gaming market, as many high-rolling gamblers may choose the Philippines as their betting destination. To prepare for the expected influx of visitors, Alliance Global has joined a partnership of corporate entities seeking to renovate and expand the Manila International Airport.
Alliance Global Group is one of seven companies that have formed an entity called the Manila International Airport Consortium (MIAC). The group recently submitted an unsolicited bid to the Philippine government to rebuild Ninoy Aquino International Airport (NAIA). The consortium has informed the Philippine government that it will invest PHP 267 billion (USD 4.8 billion) in the airport and would require control of the facility for at least 25 years as part of the deal. During the initial development phase, if the Philippine government accepts the proposal, the consortium aims to increase the airport's annual passenger capacity from 31 million to 54 million by 2025.
A second phase will further expand the airport to accommodate up to 62.5 million passengers annually. This phase will include a new terminal and additional runways. The Manila International Airport Consortium recognizes the significant task of transforming NAIA to meet Manila's air travel needs, not only now but also in the future," said Kevin Tan, CEO of Alliance Global, who is one of Andrew Tan's four children. "It is for this reason that members of the consortium have pooled their substantial resources, technical expertise, and operational experience to come up with an overall plan for NAIA." The other six member companies of the consortium are Aboitiz InfraCapital, AC Infrastructure Holdings, Asia Emerging Dragon, Filinvest Development, JG Summit Infrastructure Holdings, and U.S.-based Global Infrastructure Partners.
According to Aviation Summary, airports generate revenue in various ways through aviation and non-aviation/commercial activities. Non-aviation income comes from leasing retail space, restaurants, and lounges. Airports also generate significant revenue from parking, and some airports charge tolls for drop-off passengers, like London Heathrow Airport. However, aviation revenue is naturally the backbone of the airport business model. Airports charge airlines landing fees, passenger fees, gate and security services usage fees, and terminal usage fees. Airlines pass these costs on to ticket prices.

Kitu11

It appears that Manila Airport has the potential for profitability.

Shri333

What is the motive behind controlling Manila Airport?

Pooja77

Airport renovation is crucial, as tourists visiting a comfortable airport tend to have a better impression.

Prem55555

How does a resort plan to control the capital's airport?

Isha000

Is this worth spending so much money on?