Insider Spotlight
Sources told InsiderPH on Friday that the new contract was sealed at P710 per square meter, matching the revised commercial rates imposed at NAIA after the airport’s takeover by San Miguel-led New NAIA Infra Corp.
Why it matters
LTP, a joint venture between Germany’s Lufthansa Technik and Lucio Tan-led MacroAsia Corp., had been lobbying government agencies and airport authorities to secure either a lower rate or a more gradual escalation, arguing that the sudden increase could undermine Manila’s competitiveness as an aviation maintenance hub.
Industry sources said discussions stretched for months as LTP sought more favorable terms given its strategic role in the local aviation sector and its status as one of Southeast Asia’s largest aircraft MRO facilities.
Despite those efforts, the parties ultimately agreed on the P710 per sqm rate now being adopted across NAIA’s restructured commercial leases.
The new contract also falls far short of the company’s original 25-year lease signed in 2000, which expired in August 2025. That long-term agreement had carried rates starting at roughly P53 per sqm before rising to around P64.84 per sqm near the end of the contract.
Between the lines
The shorter lease term suggests continued uncertainty over LTP’s long-term plans in Manila as the company evaluates expansion opportunities elsewhere, including a proposed aviation maintenance complex in Clark.
LTP had continued operating on a temporary month-to-month arrangement after its previous contract expired while negotiations were underway.
The firm lobbied for concessions from the government for several months, touting its economic contribution, export revenues and more than 3,000 skilled jobs tied to the facility.
— Edited by Daxim L. Lucas
