MANILA, Philippines — Asia Pacific is leading the world in terms of airport construction, as the region takes off with a $217 billion pipeline to develop new gateways and improve existing ones, including in the Philippines.
In a report, the Center for Aviation (CAPA) said economies around the globe are spending $488 billion to either build or upgrade a total of 575 airports.
CAPA said Asia and the Pacific is pursuing a $217 billion plan to construct and enhance airports in preparation for future demand for air travel.
The region is about to see at least 90 new airports get built over the next few years. CAPA listed the New Manila International Airport (NMIA) in Bulacan as the second most expensive project in this $121 billion blueprint of new gateways.
“In this instance, the largest projects are in Vietnam, the lengthy Long Thanh airport one, which is easily the most expensive greenfield airport project, at almost $17 billion. Also in Manila and in South Korea, [two] separate projects account for more than $17 billion in investment,” CAPA said.
NMIA, a project of San Miguel Corp., will cost P735.63 billion, and is set to become the largest airport in the Philippines, with the first phase boasting a passenger capacity of up to 35 million a year.
Meanwhile, CAPA said China and Hong Kong account for six of the 10 largest airport upgrades in Asia and the Pacific, combining for $68 billion.
The $19.3-billion expansion of the Hong Kong International Airport stands out on this list, as the project involves the establishment of a new runway, taxiways, aprons, among others.
However, CAPA said airport activities have yet to recover to their pre-pandemic levels, and some expansion plans had to be called off because of emerging risks. For one, investors are cautious to proceed with their aviation dreams on the geopolitical conflict in Europe, particularly in Ukraine.
Investors find it challenging to finance airport projects in the pandemic aftermath. CAPA said mergers and acquisitions have declined since the COVID-19 pandemic, weakening investment appetite for aviation activities.
Likewise, CAPA said the supply issues suffered by airlines, particularly Boeing – which is in hot water for safety-related incidents – are causing uncertainty in the aviation industry.
In the Philippines, the government is spending a sum of P14 billion this year to upgrade regional airports in line with efforts to promote traveland tourism.
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