Newport World Resorts Owner Seeks Control of Manila Airport, Submits $4.8B Bid

Posted on: June 19, 2023, 11:17h. 

Last updated on: June 19, 2023, 11:30h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The parent company of Newport World Resorts in Manila wants to assume partial control of the capital city’s international airport.

Newport World Resorts Manila casino Philippines
Passengers at Manila International Airport wait in line after a power outage delayed flights. Alliance Global, which owns and operates Newport World Resorts in Manila, is part of a consortium that wants to take control of the airport to expand its operations. (Image: Getty)

Alliance Global Group is in the process of acquiring full ownership of the integrated resort casino in the Philippines. Run by Chinese-born billionaire Andrew Tan, Alliance is purchasing Genting Group’s 40% stake in the casino, formerly Resorts World Manila.

Alliance is betting big on the Philippines’ COVID-19 recovery. Tan believes that Southeast Asia’s gaming market will benefit from China cracking down on VIP junket operators in Macau, with the thinking that many of those high rollers will find the Philippines attractive for their gambling dollars.

To accommodate the predicted rush of inbound traffic, Alliance Global has joined a partnership of commercial conglomerates that are seeking to renovate and expand the Manila International Airport.

Unsolicited $4.8B Bid

Alliance Global Group is one of seven companies that has joined the entity called the Manila International Airport Consortium (MIAC). The collective recently submitted an unsolicited bid to the Philippines government to rehabilitate the Ninoy Aquino International Airport (NAIA).

The consortium tells the central government that it will invest 267 billion Philippine pesos (US$4.8 billion) into the airport in exchange for assuming control of the facility for a minimum of 25 years. The group says the initial phase of the development, should the Philippines government take up the offer, would include expanding the airport’s capacity from 31 million annual passengers to 54 million travelers by 2025.

The second phase would further expand the airport to increase annual capacity to 62.5 million passengers. The second phase would include a new terminal and additional runways.

The Manila International Airport Consortium recognizes the immense task of transforming NAIA to meet the exponentially growing demands of Manila air travel, not only in the here and now but also in the future,” said Alliance Global CEO Kevin Tan, one of Andrew Tan’s four children. “It is because of this that the members of the consortium have pooled together its significant resources, technical expertise, and operational experience to put forward a NAIA Masterplan.”

The consortium’s six other member conglomerates are Aboitiz InfraCapital, AC Infrastructure Holdings, Asia’s Emerging Dragon Corporation, Filinvest Development, JG Summit Infrastructure Holdings, and US-based Global Infrastructure Partners.

How Airports Make Money

According to Aviation Digest, airports generate revenue in a variety of ways through both aeronautical and non-aeronautical/commercial endeavors.

The non-aeronautical revenue comes from airports leasing out their retail spaces, restaurants, and lounges. Airports also generate a significant portion of their revenue through parking, and some airports like London’s Heathrow, levy a toll just to drop off passengers.

But aeronautical income is naturally the backbone of an airport’s business model. Airports charge airliners landing fees, passenger fees, usage fees for gates and security services, and terminal fees. Airlines build those fees into their ticket prices.