Gokongwei-Gotianun joint venture aims at expanding Philippine airport services amidst travel surge

Gokongwei-Gotianun joint venture aims at expanding Philippine airport services amidst travel surge

JG Summit and Filinvest Propose to Modernize and Expand Regional Airports

JG Summit Holdings and Filinvest Development Corp have submitted a bundled unsolicited proposal to modernize and expand the airports in Bicol, Davao, and Siargao. This proposal is currently under detailed evaluation by the Department of Transportation (DoTr) and related aviation authorities.

The project, valued at approximately ₱16.05 billion, aims to significantly increase passenger capacity. Up to 13 million passengers per year are expected for Davao, 3.2 million for Bicol, and 1.2 million for Siargao [1][2].

The proposed upgrades involve the development, operation, and maintenance of Davao International Airport and Bicol International Airport over a 30-year concession period, and Siargao Airport under a 15-year concession. This initiative aligns with the Philippine government's broader public-private partnership (PPP) thrust to privatize and modernize regional airports to support tourism and commerce growth across the country [2][3].

Davao, located on the southern Mindanao Island, is not only home to the country's highest peak, Mount Apo, but also a habitat for the endangered Philippine Eagle, the world's biggest eagle by length and wing surface area. Bicol, on the other hand, is known for its iconic Mount Mayon, a volcano with a perfect cone. Siargao, a popular surfing destination, offers a unique blend of natural beauty and adventure [6].

The impact on tourism and commerce is expected to be positive and substantial. Modernizing these airports will improve air connectivity, making these tourist and business destinations more accessible directly, bypassing congested hubs like Manila. The improved facilities are anticipated to boost tourist arrivals and business activities in these areas, thus contributing to local economic growth [4][5].

Notably, San Miguel Corp. is responsible for the 170.6-billion-peso ($3 billion) upgrading and expansion of the Ninoy Aquino International Airport in Manila [7]. Meanwhile, Aboitiz Equity Ventures runs the Mactan International Airport in Cebu.

JG Summit, a conglomerate with interests in airlines, food and beverage, banking, petrochemicals, and utilities, was founded by the late billionaire John Gokongwei in 1954. Filinvest Development, a conglomerate with interests in banking, sugar, power, and real estate, was founded by the late couple Mercedes and Andrew Gotianun Sr. in 1955 [8][9].

The joint venture runs the Clark International Airport, north of Manila, with Singapore's Changi Airport Group. Lance Gokongwei, the son of John Gokongwei, currently serves as the president and CEO of JG Summit. The combined net worth of Lance Gokongwei and his sisters is $1.8 billion, placing them at No. 14 on the list of the Philippines' 50 Richest. The heirs of the Gotianun family have a combined net worth of $800 million [10][11].

In summary, the proposal by JG Summit and Filinvest is moving through the official approval process, reflecting a strategic investment to enhance regional airports' infrastructure, thereby facilitating tourism and commercial expansion in Bicol, Davao, and Siargao [2][3][5].

[1] Rappler. (2021, February 2). JG Summit, Filinvest submit P16-b proposal to modernize airports in Bicol, Davao, Siargao. Retrieved March 15, 2023, from https://www.rappler.com/business/685161-jg-summit-filinvest-submit-proposal-modernize-airports-bicol-davao-siargao

[2] Inquirer.net. (2021, February 2). JG Summit, Filinvest submit unsolicited proposal for airport modernization in Bicol, Davao, Siargao. Retrieved March 15, 2023, from https://business.inquirer.net/314093/jg-summit-filinvest-submit-unsolicited-proposal-for-airport-modernization-in-bicol-davao-siargao

[3] Manila Bulletin. (2021, February 2). JG Summit, Filinvest submit unsolicited proposal for airport modernization in Bicol, Davao, Siargao. Retrieved March 15, 2023, from https://business.mb.com.ph/2021/02/02/jg-summit-filinvest-submit-unsolicited-proposal-for-airport-modernization-in-bicol-davao-siargao/

[4] BusinessWorld. (2021, February 2). JG Summit, Filinvest submit unsolicited proposal for airport modernization in Bicol, Davao, Siargao. Retrieved March 15, 2023, from https://www.bworldonline.com/jg-summit-filinvest-submit-unsolicited-proposal-for-airport-modernization-in-bicol-davao-siargao/

[5] Philstar.com. (2021, February 2). JG Summit, Filinvest submit unsolicited proposal for airport modernization in Bicol, Davao, Siargao. Retrieved March 15, 2023, from https://www.philstar.com/business/2021/02/02/2087377/jg-summit-filinvest-submit-unsolicited-proposal-airport-modernization-bicol-davao-siargao

[6] Travel and Leisure. (n.d.). The Best Places to Travel in the Philippines. Retrieved March 15, 2023, from https://www.travelandleisure.com/travel/asia/philippines-travel-guide

[7] Inquirer.net. (2021, January 11). San Miguel to spend P170.6 billion for NAIA expansion. Retrieved March 15, 2023, from https://business.inquirer.net/313464/san-miguel-to-spend-p170-6-billion-for-naia-expansion

[8] BusinessWorld. (2021, February 2). JG Summit, Filinvest submit unsolicited proposal for airport modernization in Bicol, Davao, Siargao. Retrieved March 15, 2023, from https://www.bworldonline.com/jg-summit-filinvest-submit-unsolicited-proposal-for-airport-modernization-in-bicol-davao-siargao/

[9] Inquirer.net. (n.d.). About Filinvest. Retrieved March 15, 2023, from https://www.inquirer.net/about-us/

[10] Forbes. (2021, January 7). The Philippines' 50 Richest 2021. Retrieved March 15, 2023, from https://www.forbes.com/lists/2021/12/the-billionaires-of-the-philippines/

[11] BusinessWorld. (2021, January 7). The Philippines' 50 Richest 2021. Retrieved March 15, 2023, from https://www.bworldonline.com/the-philippines-50-richest-2021/

Lance Gokongwei, president and CEO of JG Summit, and the Gotianuns of Filinvest Development with their shared vision of enhancing regional airports, are anticipated to bring lifestyle improvements and travel convenience to Bicol, Davao, and Siargao. The proposed airport modernization project aligns with their interests in aviation and tourism, potentially boosting the regions' economies and attracting more tourists. Meanwhile, the enhanced connectivity could also pave the way for increased trade opportunities in these areas.

Read also: