No more P550 terminal fee for OFWs starting April 30

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Overseas Filipino workers (OFWs) are among those who will no longer have to pay the terminal fee starting April 30. The good news comes as a result of an agreement forged between the Manila International Airport Authority (MIAA) and airlines operating at the Ninoy Aquino International Airport (NAIA).

The exemption of OFWs from the International Passenger Service Charge (IPSC), or terminal fee, is included in the memorandum of agreement (MOA) signed on March 15 by MIAA and the 40 airlines operating in the country’s main gateway.

The agreement calls for integrating the terminal fee into the passenger’s airline ticket, except for those exempted.

Under the MOA, the IPSC of P550 will be waived for OFWs, pilgrims, Philippine Sports Commission delegates, and others authorized by law and the Office of the President to travel outside the Philippines.

For now, the exemption will be honored in face-to-face purchase of tickets. By the end of July 2017, the exemption will also apply to online purchases. This means migrant workers no longer need to queue for their refund when departing NAIA.

Transportation Secretary Arthur Tugade, who witnessed the signing, thanked air carriers for trusting the government and hailed MIAA general manager Ed Monreal for extending this level of service to OFWs.

“It is but fitting that we afford them utmost care and attention in every possible way we can. We hope that after revisiting the integration process earlier implemented in 2015 and instituting changes in the process of exemption, our OFWs will have a seamless airport experience,” said Monreal.

The MOA also enumerated the rules for integrating the IPSC, or terminal fee, into the airline ticket.

Under the agreement, the air carrier will collect the IPSC on behalf of NAIA when a departing passenger buys a ticket.

Starting April 30, 2017, all tickets of departing passengers, except those who are exempted, issued or re-issued by the air carrier will have the IPSC already incorporated.

For collecting, handling, and remitting the IPSC receipts, air carriers will get a 3.5% service fee based on passenger load, again excluding internationally recognized exempted passengers. Upon request of the carrier, the rate of the service fee is scheduled for review.

During the first year of implementation, or until April 29, 2018, MIAA will continue to provide refund counters at the terminals, after which all refunds will be handed out at the MIAA Administrative Building at NAIA Complex in Pasay City.

The MOA follows developments in 2012 when MIAA integrated the terminal fee for domestic operations and in 2015 when integration of such fee for international operations was implemented.

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