VZCZCXYZ0000
OO RUEHWEB

DE RUEHML #0388/01 0330839
ZNR UUUUU ZZH
O 020039Z FEB 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTAE WASHDC IMMEDIATE 5048
INFO RULSDMK/DEPT OF TRANSPORTATION WASHDC IMMEDIATE
RUCPDOC/USDOC WASHDC IMMEDIATE
RHMFIUU/TSA WASHINGTON DC IMMEDIATE
RHMCSUU/FAA NATIONAL HQ WASHDC IMMEDIATE
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE
RUEHKO/AMEMBASSY TOKYO IMMEDIATE 3046

UNCLAS SECTION 01 OF 02 MANILA 000388 
 
SIPDIS 
 
STATE FOR EAP/MTS AND EB/TRA 
FAA FOR TOKYO 
SINGAPORE AND TOKYO FOR FAA 
COMMERCE FOR BERLINGUETTE 
 
E.O. 12958: N/A 
TAGS: EAIR ECON EINV ETRD RP
SUBJECT: Manila Airport Showcases Security Improvements to 
Ambassador 
 
REF:  A) MANILA 0335 
 
      B) 06 MANILA 3743 
 C) 06 MANILA 3596 
 
MANILA 00000388  001.7 OF 002 
 
 
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Summary 
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¶1.  Ambassador toured the Ninoy Aquino International Airport on 
February 1.  The Manila Airport Authority described and pointed out 
its recent security enhancements to ensure secure, efficient, and 
comfortable passenger travel.  The Authority started charging an 
additional four dollar (200 peso) security fee today to cover the 
estimated $112 million investment in security upgrades.  Officials 
will work with the International Air Transport Association to 
determine satisfactory criteria for airline relocation to the new 
terminal, which may open with a limited trial run in April (ref A). 
The Airport General Manager said he would soon meet with a US air 
ambulance firm now based in Guam that is exploring providing 
services for the Philippines.  Ambassador used the visit to stress 
the importance of aviation security and the need to allocate future 
facilities to all carriers in an open and transparent fashion.  End 
Summary. 
 
¶2.  The Manila International Airport Authority (MIAA) gave the 
Ambassador and Embassy staff a security briefing followed by a tour 
of the Ninoy Aquino International Airport on February 1 to showcase 
its efforts to establish the airport as a globally-competitive, 
world-class facility with world-class management.  General Manager 
Alfonso Cusi stressed that MIAA is striving to make the airport a 
secure and efficient operation for the passengers.  The briefing 
outlined physical security enhancements, training of Aviation 
Security Screening Officers, and plans to purchase over $100 million 
in Explosive Detection Screening equipment, manufactured in the 
United States and certified by the U.S. Transportation Security 
Administration.  The Director of the Philippine Aviation Security 
Group stated that over 200 security screening officers have been 
trained and certified by instructors from the International Civil 
Aviation Organization (ICAO).  In addition, over 100 Philippine 
National Police, who supervise the screening officers, have 
completed the ICAO training course and are now undergoing 
certification. 
 
¶3.  MIAA estimated the initial cost for the security measures at 
approximately $112 million with another $10 million needed over five 
years for routine maintenance.  The Authority expects to collect 
approximately $14 million the first year from the new airport 
security tax and increasing amounts each succeeding year as the 
number of travelers grows.  Overseas Filipino workers are exempt 
from the security fee and other airport taxes.  The officials said 
the exemption demonstrates the government's appreciation for the 
remittances workers send back to the Philippines -- about $12-13 
billion in 2006. 
 
¶4.  Assistant General Manager Tirso Serrano briefed the Ambassador 
on the plans for the new airport terminal, Terminal Three.  The new 
terminal will have a dedicated food court and shopping area for 
travelers and their families.  Serrano estimated there are three 
well-wishers for each Filipino traveler.  He noted a global trend of 
airports earning revenue from non-aviation services.  He planned to 
tap into this opportunity to shift the airport's income reliance 
from runway fees and traveler taxes to retail sales and business 
services. 
 
¶5.  The new terminal will open for a limited, trial run in April. 
There will be a "rolling opening" as the airlines and 
concessionaires gradually move into the terminal while contractors 
finish the equipment installation and construction.  Serrano said 
the airport is "98% complete," with further finishing touches 
required on the drainage system and cargo road.  All electronic and 
communications systems will be tested during the trial run. 
Contractors will assess and confirm the structural integrity and 
safety systems of the facility, which has been idle since 2002 when 
construction stopped because of legal squabbles.  Contractors will 
also assess the terminal's value in order to determine compensation 
for the private sector consortium from which the GRP expropriated 
the terminal in 2005. 
 
¶6.  According to Senior Assistant General Manager Oscar Paras, MIAA 
is working with the International Air Transport Association to 
determine fair criteria for moving airlines into Terminal Three.  He 
 
MANILA 00000388  002 OF 002 
 
 
suggested that aircraft size would be a major factor, with airlines 
using large planes such as Boeing 747s and A-320s moving into the 
new terminal while airlines flying smaller planes such as Boeing 
737s or A-319s moving into Terminal Two.  MIAA will determine its 
final airline relocation criteria and conditions before March. 
 
¶7.  Cusi said he would meet soon with a US air ambulance firm now 
based in Guam that is exploring providing services for the 
Philippines.  Ambassador noted the presence of U.S. flag carriers 
now operating at MIAA and stressed the importance of transparency 
and a level playing field as the airport expanded facilities and 
welcomed new carriers into operation. 
 
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Comment 
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¶8.  NAIA security officials have made vast improvements in airport 
security over the past two years, which resulted in 2006 in the 
first favorable TSA airport security assessment in three years. 
KENNEY