Philippine Airlines (PAL) has offered to develop a P20bn ($400m) passenger terminal next to its existing hub at the Centennial Terminal 2 in Ninoy Aquino International Airport (NAIA).

The new terminal will help expand airport capacity and improve services for passengers.

According to PAL president Jaime Bautista, the new 89,000m2 air terminal would be designed to accommodate 12 to 15 million passengers annually.

The facility will feature new aerobridges that will be able to accommodate 12 to 17 wide-bodied and single-aisle aircraft.

Set to be constructed on a 16ha area adjacent to NAIA Terminal 2, the proposed building will comprise the now-defunct Philippine Village Hotel, the former Nayong Pilipino complex and a property owned by Philippine Amusement and Gaming (PAGCOR).

"We also need government to continuously invest in building, developing, enhancing and upgrading airport infrastructure."

The annex building will also include multi-level parking to accommodate 1,000 vehicles, a new cargo terminal and ground service facilities.

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Bautista said that the proposed project needs full support from the government, particularly in securing crucial land leases from different agencies such as the Manila International Airport Authority (MIAA) and PAGCOR.

He added: “We also need government to continuously invest in building, developing, enhancing and upgrading airport infrastructure, not just for NAIA but all throughout the country, as PAL and other airlines out up more flights and open new routes in our race for a thriving economic future.”

PAL intends to build the new facility to consolidate its operations and provide enough space for operating its increasing aircraft fleet, as well as international and domestic passengers.