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Viewing cable 08MANILA1675, TROUBLED MANILA AIRPORT TERMINAL MAY OPEN SOON

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Reference ID Created Released Classification Origin
08MANILA1675 2008-07-14 09:32 2011-08-25 00:00 UNCLASSIFIED Embassy Manila
O 140932Z JUL 08
FM AMEMBASSY MANILA
TO SECSTATE WASHDC IMMEDIATE 1286
INFO DEPT OF TRANSPORTATION WASHDC IMMEDIATE
ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE
AMEMBASSY TOKYO IMMEDIATE 
AMEMBASSY SEOUL 
AMEMBASSY BEIJING 
AMEMBASSY CANBERRA
UNCLAS MANILA 001675 
 
 
STATE FOR EAP/MTS 
TRANSPORTATION FOR FAA 
SINGAPORE AND TOKYO FOR FAA 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD BEXP RP
SUBJECT: TROUBLED MANILA AIRPORT TERMINAL MAY OPEN SOON 
 
REF: Manila 03743 
 
 
1.  Summary: In June, Philippine President Arroyo ordered that the 
long-delayed Ninoy Aquino International Airport Terminal 3 (NAIA-3) 
open for domestic commercial flights before the end of July and 
created a task force to ensure the opening.  Two Philippine airlines 
are already committed to start domestic operations there in the next 
few weeks.  However, further legal challenges may again block the 
opening or force a re-closing.  End summary 
 
2.  Philippine government officials have announced that the NAIA-3, 
mothballed for years due to legal controversies, will begin handling 
commercial domestic flights before the end of July.  National 
Airport officials told us that Cebu Pacific and Philippine Airlines 
Express both plan to start operations there before the end of July. 
We confirmed this information with the airlines.  A Cebu Pacific 
executiveQold us the company expects to move all of its NAIA 
domestic flights to Terminal 3 before the end of August, and hopes 
to consolidate its international flights there within six months. 
However, an executive at Philippine Airlines predicted that Terminal 
3 will face legal and technical challenges and could close again 
soon after it opens. 
 
Legal obstacles 
--------------- 
 
3. The Philippine Supreme Court ruled that the operation of NAIA-3 
could start only after the payment of just compensation to the 
consortium that built the terminal.  Government officials interpret 
this ruling to mean that they can start operations of the terminal 
as long as they do not perform 'acts of ownership', which they 
define as leasing the terminal concessions. 
 
Technical evaluation 
-------------------- 
 
4. An attempt to open the terminal in 2007 failed after a part of a 
ceiling collapsed and weakened the terminal beams.  A consulting 
firm, hired by Manila International Airport Authority (TCGI 
Engineers) reported that the terminal is structurally defective and 
could only withstand a low-intensity earthquake.  Another firm that 
assessed the terminal (The Association of Structural Engineers of 
the Philippines) reported that the structural defects only affect 
less then 10 percent of the terminal.  They recommended that the 
safe portions of the terminal open while repairs are made to the 
other portions. 
 
 
KENNEY#