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Aboitiz InfraCapital - Connecting people and communities both nationally and globally
The global aviation industry today is made up of a massive, continuously active network of airports, aircraft operators, and air traffic management organizations. This network is responsible for bridging the gaps between major cities and smaller communities across the globe, creating abundant employment opportunities and facilitating international travel and trade.
Improving the aviation sector presents promising possibilities for social and economic growth in developing countries such as the Philippines. Aboitiz InfraCapital (AIC) has chosen to seize these opportunities by investing in a number of regional airport development projects in the country. We’re working closely with the government on both the national and local levels, as well as with prominent industry leaders and experts, to bring Philippine aviation in line with global expectations.
By doing so, AIC is helping raise the standard for airport operations nationwide. We look forward to a future in which these transportation hubs further drive economic progress and showcase the Philippines as a prime destination for both business and leisure travel.
Our Projects and Investments
Aboitiz InfraCapital Transport and Mobility – FAQs
What is the aviation industry?
The aviation industry encompasses almost all sectors directly involved with air travel and trade, and the activities that support and facilitate it. Important examples of such industries include airline and airport operations, military aviation, aircraft manufacturing, aviation and aerospace research, and many more.
What is the current state of aviation in the Philippines?
At present, there are 88 airports in the Philippines. Of these, eight are outfitted with border control facilities and capable of accommodating international flights, while 40 serve only domestic flights and the final 40 are primarily used for general aviation.
The Ninoy Aquino International Airport (NAIA), also known as the Manila International Airport, is the largest airport in the country. NAIA currently consists of four passenger terminals and serves as a hub for the country’s four major commercial airlines: Philippine Airlines, Cebu Pacific, PAL Express, and Philippines AirAsia. Other leading airports in the Philippines include the Clark International Airport, which serves the greater Manila area and the rest of Central Luzon, and the Mactan-Cebu International Airport, which serves the Central Visayas region.
It’s impossible to overstate the aviation industry’s contributions to the Philippine economy. According to one report by the International Air Transport Association (IATA), approximately 1.2 million jobs in the country were either directly or indirectly supported by the aviation sector in 2017. The industry’s gross contribution to the national GDP at the time was estimated at USD 10.4 billion. In total, around 3.4% of the Philippines’ GDP was supported by aviation industry inputs and foreign tourists arriving by air.
The Philippine aviation industry experienced a drastic decline in revenue in 2020 due to the global coronavirus pandemic. Domestic and international travel bans led to a steep drop in passenger demand, which, in turn, led to significantly reduced flights and large-scale employee layoffs. However, the industry has been recovering steadily since most travel restrictions began lifting in early 2021. For one thing, demand for air travel has resurged in the Philippines post-pandemic, particularly among domestic tourists. Air cargo traffic has also experienced positive growth since 2021, and air freight transport demand, in particular, is projected to even overtake pre-pandemic levels by 2023.
Why invest in the Philippines’ aviation industry?
Improving aviation and airport operations in the Philippines can pave the way for both economic prosperity and social progress. For one thing, the air transport sector employs millions of professionals to operate aircraft, oversee navigation systems, manage baggage and cargo, facilitate passenger check-in, and a host of other functions. Aviation also helps drive employment in related industries, including tourism, hospitality, production and manufacturing, retail, and infrastructure.
Aviation also contributes to the country's economic growth by expediting global trade and travel.. The Philippines’ abundant natural wonders, relatively low cost of living and doing business, rich cultural heritage, and hospitable population make it an appealing destination for both business and leisure travelers from all over the globe. A well-developed air transport sector can help the country leverage these advantages to the fullest and compete economically with its more prosperous neighbors.
What are Aboitiz InfraCapital’s investments in aviation?
Last September 2022, AIC completed a groundbreaking deal with Megawide Construction Corporation and the GMR Group for the operation and maintenance of the acclaimed Mactan-Cebu International Airport (MCIA).
AIC has also submitted proposals regarding the operations, maintenance, and further development of three regional airports: Bicol International Airport in Southern Luzon, the New Bohol-Panglao International Airport in the Visayas, and the Laguindingan International Airport in Northern Mindanao.
How is Aboitiz InfraCapital improving regional airports in the Philippines?
AIC aims to enhance its regional airports by reimagining the existing infrastructure by expanding airport facilities, optimizing airport maintenance procedures, and introducing innovative new technologies to elevate operations. Through these efforts, we hope to improve the efficiency, environmental sustainability, and the overall customer experience at these facilities. Our ultimate objective is to transform these airports into modern, highly efficient regional gateways that will vastly improve both national and global connectivity in the Philippines.
What are Aboitiz InfraCapital’s plans for the Mactan-Cebu International Airport?
The goal is to transform MCIA into an even more efficient, sustainable, and customer-friendly aviation hub, helping maintain its reputation as one of the nation’s principal international gateways. To this end, AIC plans to enhance airport operations and maintenance by leveraging state-of-the-art artificial intelligence and data science tools.