Strategic Management to Manila International Airport Authority (MIAA)

that operates Ninoy Aquino International Airport (NAIA)

A Final Performance Task in Strategic Management

By

BSTM 601

Bansil, Felicel

Cardenas, Patricia Anne

Flores, Alexis

Grantoza, Yvonne

Malic, Lovely Joy

Moreno, Grace

Norva, Mich

Pialago, Micah

Rojo, Ma. Christine Joy

 I. Company Background

Figure No. 1 Depicts the MIAA Logo

Ninoy Aquino International Airport (IATA: MNL, ICAO: RPLL) is the main international airport that
serves the Manila area in the Philippines. It is between the cities of Pasay and Paranaque, about 7 kilometers
south of Manila proper and southwest of Makati. NAIA is where most people enter the Philippines. It is
also a hub for many companies, including AirSWIFT, Cebgo, Cebu Pacific, PAL Express, and Philippine
companies. It is also where Philippines AirAsia does most of its business. It was named after Ninoy Aquino,
a senator who lived from 1932 to 1983 and was killed there on August 21, 1983.NAIA is run by the Manila
International Airport Authority (MIAA), which is part of the Department of Transportation (DOTr).

The Manila International Airport Authority sets world service standards for the Ninoy Aquino
International Airport (NAIA) and make sure that these are followed. It includes upgrading current airports
so that both local and foreign planes can use them safely. For the Philippines to become a hub for both
foreign and domestic air travel, the number of flights must go up. Maintain the government's funds and
follow the law.

a. Strategic Posture of MIAA: Mission for NAIA

We provide safe, secured, and efficient environment enabling stakeholders to deliver a

seamless experience for passenger and all airport users, contributing to economic development.
 b. Strategic Posture of MIAA: Vision for NAIA

By 2022, NAIA as managed and operated by MIAA, is recognized as among the best airports
in Asia.

c. Strategic Posture of MIAA: Policies for NAIA

In order to provide the public with fundamental services, each official and employee of the
government is an asset or resource that should be valued, developed, and used. Therefore, every
department and agency's top priority should be to produce and keep a highly qualified and
professional personnel in the public service (EO 292, Rule Vll, Sec.

Therefore, every department or agency must set up a continuous program for career and
personnel development for all agency employees at all levels and must foster an environment or
work climate that supports the development of staff members' abilities, talents, and values for better
public service.

Interventions and initiatives for learning and development (L&D) in the MIAA must be based on
the following guiding principles:

1. Every MIAA official and employee is a valuable resource that the company values. The
MIAA prioritizes and funds each official and employee's learning and development as a
result.
2. L&D initiatives for MIAA executives and staff members must be intentional and in line
with the organization's strategic objectives and goals. The L&D is a way for MIAA to
improve its capacity and knowledge in order to handle and respond to the various needs of
its clients.
3. The improvement of official and employee competencies for their current and future tasks
is a part of L&D.
4. Management, supervisors, and employees all share responsibilities for learning and
development (L&D). Employees and their respective supervisors are equally responsible
for planning and managing their professional development by identifying, pursuing, and
seizing chances. Management creates the enabling environment by creating opportunities
for learning and growth.
5. To enable equal access to L&D inventions, L&D shall take into account the distinct
demands of men and women in the MIAA workforce.
 6. The MIAA views investments in education and training as being just as vital as those made
in research, information technology (IT), equipment purchases, and product development.
When allocating resources, the capacity development of MIAA officials and staff is
accorded equal weight, if not the utmost importance. To supplement current L&D
resources, partnerships with the institutions will be investigated.
7. Maintaining a corps of qualified officials and workers for the MIAA requires ongoing
upgrading of competencies. It attempts to create a skilled, trustworthy, and productive
workforce. Through lifetime learning and the integration of learning into every aspect of a
MIAA official or employee's working life, continuing competence is maintained and
improved.

II. Internal Environment

The Ninoy Aquino International Airport ‘s internal environment under Manila International Airport
Authority’s management is represented in this study in terms of its resources, capacities, and key
competencies in areas such as marketing, finance, and operations.

a. Resources

In order to modernize Ninoy Aquino International Airport (NAIA), the Manila

International Airport Consortium (MIAC) has presented an unsolicited proposal requesting P100
billion in funding. The members of this consortium include Aboitiz InfraCapital, Inc., AC
Infrastructure Holdings Corporation, Asia's Emerging Dragon Corporation, Alliance Global –
Infracorp Development, Inc., Filinvest Development Corporation, and JG Summit Infrastructure
Holdings Corporation. In addition, a major conglomerate partner is the United States-based
infrastructure investor and airport operator Global Infrastructure Partners (GIP).

b. Capabilities

The fields at Ninoy Aquino International Airport (NAIA) were clearly full more than 12
hours a day. To ensure passenger safety, NAIA maintains hourly restrictions on the number of
ATMs that may take place on its two runways, which service four terminals with a combined
maximum allowable passenger load (MAP) of 31. In 2012, the airport had 31.9 million passengers,
which was more than it could handle. In 2018, a record-breaking 45.1 million people went through
the airport's gates. Since demand is expected to rise in the future, the NAIA's on-time performance
in the first half of 2019 has dropped to 59.7%. The area around NAIA lacks scope for growth in
any direction, which means that even with planned improvements, capability is expected to stay
limited.

c. Competencies in marketing

Ninoy Aquino International Airport’s marketing strategies include selling products and
services on international flights, which is where it makes the most money. It also includes charging
prices that reflect the value it gives customers, advertising in print and broadcast media, and finding
and purchasing a larger piece of land on which to build more airport facilities.

d. Competencies in finance

1. Gross Revenues is P 4.273 billion, down by P 854 million or 17%

2. Operating Expenses is P 5.959 billion, up by P 188 million or 3%
3. Net Loss from Operations is P 2.274 billion, down by P 1.067 billion or 88%
4. Net Loss After Tax is P 2.254 billion, down by P 1.379 billion or 158% Actual
versus Budget
5. Gross Revenues is lower than projections by P 994 million or 19%
6. Operating Expenses is lower than projections by P 1.49 billion or 20%
7. Net Loss from Operations is lower than projections by P 853 million or 27%
8. Net Loss After Tax is lower than projections by P 966 million or 30%

e. Competencies in operations

According to the Manila International Airport Authority's annual report, In Total NAIA
Operations, the number of planes moving through NAIA Terminals 1, 2, 3, and 4 rose by 8.17
percent, from 111,953 to 121,095, which is a total increase of 9,142 flights. On the other hand,
passenger movements went down by 28.91%, from 11,274,353 to 8,015,385, which is a total drop
 of 3,258,969 people. Similarly, cargo volume increased by 22,5%, from 480,361 metric tons to
588,459 metric tons, for a total increase of 108,098 metric tons.

III. External Environment

Utilizing the porter's five forces, the external environment is presented with the Ninoy Aquino
International Airport’s competitive strength and position as operated by Manila International Airport
Authority (MIAA).

Threat of
Potential of new
Competition in Power of Power of substitute
entrants into the
the Industry suppliers customers products and
industry
services

The level of At NAIA the level The suppliers' The bargaining The risk of NAIA
competitive of potential of bargaining power power of alternatives is
rivalry in NAIA is new entrants into is low at NAIA. It customers at moderate. NAIA
high. Many the industry is has a substantial NAIA is airlines already
airports in the Moderate. There's market share, moderate. It is the established a good
world compete little risk of giving it only international reputation on
with NAIA by additional negotiation power airport that serves aviation industry
providing greater competitors with suppliers. the greater Manila thus making it
amenities and joining NAIA. area. hard for other
services. airlines to surpass.

Figure No. 1 Depicts the External Environment of NAIA by the Porter’s Five Forces

a. Competition in the Industry

At Ninoy Aquino International Airport (NAIA), the level of competitive rivalry is high. Other
airports in the other countries, such Changi Airport and Kuala Lumpur International Airport,
compete with NAIA by providing greater amenities and services. Also, the expansion of low-cost
carriers has increased airline competition, which could result in reduced ticket prices and better
service. Although NAIA has a huge advantage because it is the main international airport serving
the Manila metropolitan region, it must constantly innovate and enhance its offerings to be more
competitive. Additionally, NAIA should adapt new technologies to improve its facilities and attract
more passengers.

b. Potential of new entrants into the industry

There is little risk of additional competitors joining Ninoy Aquino International Airport (NAIA).
Due to the fact that there are significant barriers to enter in the aviation sector and are created by
the high startup and operation costs of airports as well as the numerous regulatory requirements.
Moreover, NAIA benefits from economies of scale and has a solid reputation, making it difficult
for new competitors to establish a presence in the market.

c. Power of suppliers

The suppliers' bargaining power is low at Ninoy Aquino International Airport (NAIA). Although
providers like airlines, ground handling services, and other vendors are necessary for the running
of the airport, there are many of them, which breeds competition and weakens their negotiating
position because NAIA have many choices to choose from. Furthermore, NAIA has a substantial
market share, giving it negotiation power with suppliers.

d. Power of customers

The bargaining power of customers at Ninoy Aquino International Airport (NAIA) is moderate.
Although travelers have a variety of airlines and airports to select from, NAIA is the only
international airport that serves the greater Manila area, which reduces the number of options. The
expansion of low-cost airlines and other airports in the area has made travelers more price
conscious, and if the airport's services and costs are not reasonable, they may select an alternative.

e. Threat of substitute products and services

The risk of Ninoy Aquino International Airport (NAIA) alternatives is moderate. Although there
are other airports in the area that may be used instead, for many travelers, NAIA's strategic location
and connectivity to domestic and international destinations make it the most practical and
affordable choice. Passengers may choose other options if they provide better services and costs,
though, as low-cost carriers and other airports in the area are growing. Additionally, NAIA airlines
 already established a good reputation on aviation industry thus making it hard for other airlines to
surpass.

IV. Analysis of Strategic Factors

This study utilizes the framework of the SWOT matrix to present the analysis of the strategic factors
of Ninoy Aquino International Airport (NAIA) as operated by Manila International Airport Authority
(MIAA).

Strengths Weaknesses

• The airport provides a variety of customer • Some outdated and inadequate facilities
services • The number of flights it can accommodate
• Main entry point of the Philippines is limited.
• This terminal is the visitor's initial and • The terminal is in heavy traffic areas
final impression • NAIA is prone to bad press.
• NAIA airport is well connected to • The airport is congested
different flights • Poor customer services
• Established a terminal reputation and
highly recognized
• This terminal is strategically located in
the Philippines' business
• The terminal was renovated to improve
the facilities and infrastructure

Opportunities Threats

• Increase in tourism • Increasing competition with other airlines

• Constructing new terminals and runways • High possibility to become the entrance of
• Cooperation with other regions. bad people
• Chance to draw additional airlines and • It faces terrorism attacks
boost the number of flights • Unstable prices of fuel
• Implement modern technology like • Natural disasters which can impede
biometric scanning and facial recognition airport operation
• Work with companies, lodging facilities, • Impacted by the political unrest in the
or other airlines to offer deals and nation
promotions

Figure No. 2 Depicts NAIA’s Analysis of Strategic Factors by the SWOT Matrix
The internal factors in the SWOT analysis of NAIA's strategic factors under MIAA's management comprise
the following:

a. Strengths

• To ensure that passengers have a pleasant experience, the airport provides a variety
of customer services such as luggage storage, currency exchange, and tourist
information.
• It is the main entry point of the Philippines into the rest of the world.
• This terminal is the visitor's initial and final impression of the Philippines, whether
they are locals or foreigners.
• NAIA airport is well connected to different flights whether it is domestic or
international destinations, and it is served by a number of airlines.
• Has established a terminal reputation and highly recognized in the country.
• This terminal is strategically located in the Philippines' business and tourism hub,
the Metropolitan Area.
• The terminal was renovated to improve the facilities and infrastructure so that it
could better serve its customers.

b. Weaknesses

• Despite the renovations that was done on the terminal, some outdated and
inadequate facilities are still evident such as the lounges and restrooms.
• Because NAIA only has two runways, the number of flights it can accommodate
is limited.
• Since the location of the terminal is in heavy traffic areas resulting to many late
passengers and affects the flight.
• NAIA is prone to bad press. In fact, it has been in the news several times due to
issues such as data breaches, theft, and other issues that raise concerns about the
terminal's safety and security.
 • The airport is congested, especially during peak hours, resulting in long wait times
and delays.
• There are a lot of reports regarding poor customer services.

The external factors in the SWOT analysis of NAIA's strategic factors under MIAA's management comprise
the following:

c. Opportunities

• Evident increase in tourism due to summer season

• By constructing new terminals and runways, the airport may increase its ability to
handle more travelers and flights.
• It has cooperation with other regions which can result in catering more passengers.
• There is a chance to draw additional airlines and boost the number of flights from
NAIA as the Philippines become a more prominent tourist destination.
• To speed up passenger processing and improve security, NAIA can implement
modern technology like biometric scanning and facial recognition for fast
transactions and services.
• NAIA may work with companies, lodging facilities, or other airlines to offer deals
and promotions that will draw in more customers.

d. Threats

• Increasing competition with other airlines in other regions.

• NAIA have a high possibility to become the entrance of bad people
• It faces terrorism attacks that could result in inconvenience and loss of passengers'
trust and loyalty.
• Unstable prices of fuel that can affect the prices of flights
• Typhoons and earthquakes are common natural disasters in the Philippines, which
can impede airport operations
• The operations of the airport may be impacted by the political unrest in the nation,
which can cause uncertainty and have an influence on travel and tourism.
V. Strategic Alternatives

a. Growth

This study proposes a strategic management to Manila International Airport Authority (MIAA)
that operates Ninoy Aquino International Airport (NAIA) by implementing growth strategy
through concentration or vertical growth to expand its activities with the goal of growing its sales,
assets, and earnings. The Ninoy Aquino International Airport (NAIA) must be improved as part of
this plan due to the country's poor aviation status.

By addressing the company's growth strategy, the study develops a strategic management plan
for the Ninoy Aquino International Airport (NAIA) which desires to increase its operations in order
to increase sales, assets, and profits. Fixing the unacceptable situation of the Ninoy Aquino
International Airport, or NAIA, is necessarily a part of this strategy. In a recent online poll, NAIA
has further dropped, and it is currently listed as one of the five worst airports in the world and the
worst in Asia. The primary issues are the outdated facilities and the less-than-friendly service
passengers receive. Overall, NAIA provides passengers with a substandard travel or customer
experience. It is possible to find solutions to this situation quickly and in a way that is consistent
with a long-term airport strategy. The way to do this is by acknowledging the concentration growth
strategy, also known as the vertical growth. It entails extending supply chains, introducing fresh
features, and presenting new merchandise. It also resulted in cost savings, resource control, key
input assurance, and access to large and future clients. Implementing notable programs and projects
to NAIA is the best thing to do. This includes operating projects that include water supply, repairs
and maintenance, manpower, and services. This is centered on their mission of providing a secure,
efficient, and safe environment so that stakeholders can offer a seamless experience for travelers
and airport users.

b. Stability

This study proposes a strategic management to Manila International Airport Authority (MIAA)
that operates Ninoy Aquino International Airport (NAIA) by implementing stability in the
management through pause or proceed-with-caution strategy to address the lack of infrastructural
development, especially in runways, which is the primary reason of the current air traffic
congestion and aircraft delays that NAIA and its passengers are experiencing.
 The Ninoy Aquino International Airport (NAIA) has emerged as the primary entry point for
visitors to the Philippines, the airport has been operating beyond its designed capacity, leading to
overcrowding and delays. Customer experience is a crucial aspect of any business, and the airport
industry is no exception. The Ninoy Aquino International Airport (NAIA) in the Philippines has
been facing customer experience issues for quite some time now. Long queues, delayed flights, and
poor facilities are some of the major concerns that passengers have raised. NAIA may choose to
utilize pause/proceed with a cautious strategy to deal with these problems. With this tactic,
operations are briefly suspended in order to evaluate and enhance the customer's experience before
returning to regular operation. Thus, NAIA is better able to pinpoint areas that require development
and make the appropriate adjustments to raise the satisfaction of customers. For instance, NAIA
might make improvements to its facilities by purchasing things like cozy seating, spotless
restrooms, and effective baggage handling equipment. By adopting self-check-in kiosks or online
check-in options, they can further streamline their check-in procedure. In conclusion, the NAIA
may effectively solve its customer experience difficulties by implementing a pause/proceed with
caution strategy. By putting the needs of the customer first, NAIA may become known as a top
airport that offers outstanding service to its customers.

c. Retrenchment

This study proposes a strategic management to Manila International Airport Authority

(MIAA) that operates Ninoy Aquino International Airport (NAIA) by implementing retrenchment
through turnaround management strategies to make it through the financial difficulties that have
created difficulties in the workplace environment. In order to take measures to maintain its financial
stability, it may implement retrenchment, this includes a change to make adjustments to the way it
manages its human resources as well as eventually its affecting systems, infrastructure, and
procedures.
Reductions in personnel may be undertaken as part of the strategy for cost management
with the intention of establishing a more efficient and effective human resource support. The goal
of this study is to make sure that the airport has a more effective and efficient workforce as a whole.
To do this, this study suggests staff reductions through freely performed layoffs by offering a
severance package that includes pay and benefits to employees who voluntarily leave their
positions. Employees will be laid off in exchange for agreeing to favorable conditions, while
employees who are willing to continue working under other terms that may be implemented as a
result of restructuring and other organizational changes will be retained. Retrenching is a means of
cutting costs as well as an incentive for employees who have been contemplating retirement or a
 career change. This strategy assures that the airport and its workforce obtain the resources
necessary to adapt to the change according to plan. Hence, with the goal of guaranteeing the
continued operational success of Ninoy Aquino International Airport (NAIA) under the
management of the Manila International Airport Authority (MIAA), the envisioned changes would
prioritize strengthening the airport's resiliency and sustainability.

d. Best Strategic Option

The Philippines' poor aviation state in terms of airport conditions necessitates the improvement
of Ninoy Aquino International Airport (NAIA). The NAIA and its passengers are now experiencing
air traffic congestion and aircraft delays due to a lack of infrastructure improvements, particularly
on runways. It is NAIA’s management issue which requires to be addressed by the strategic
management of Manila International Airport Authority (MIAA) with the possible establishment of
growth, stability, and retrenchment as alternative plans strategically focused on resolving this
recognized strategic management's challenge. Among the proposed strategic alternatives, it is
determined that the retrenchment through turnaround management have the most potential to
overcome financial difficulties that have caused the NAIA's major workplace issue. This led to a
decision to propose a shift toward the turnaround retrenchment strategy, which offered the most
optimistic way to solve the strategic problem and restore its efforts to meet its goals. To maintain
financial stability, retrenchment may involve changing how the airport manages its people, systems,
infrastructure, and procedures. Retrenchment is a cost-effective, debt-free way to save NAIA's
finances. This suggests that the retrenchment strategy may be useful for controlling expenses. In
times of financial difficulty, reorganizing many departments' resources and laying off employees
will allow NAIA to meet cost developments and improve operational performance. NAIA's
voluntary layoffs during financial crises can also reduce employee stress and productivity. Hence,
the strategic management’s efforts is proposed to be focused towards developing retrenchment
turnaround plans to solve this management challenge and achieve long-term, sustainable growth.

VI. Recommendation

Ninoy Aquino International Airport (NAIA) faces challenges related to its infrastructure, baggage
security, workforce trustworthiness, and globalization efforts. This essay presents a comprehensive
recommendation to address these issues while utilizing a retrenchment strategy as a means to drive financial
growth. By adopting a strategic and holistic approach, NAIA can overcome its limitations and position
itself as a leading airport in the global aviation industry.

a. Infrastructure Upgrades: Implementing a well-planned development and expansion plan

can help solve NAIA's infrastructural problems. The enlargement of current runways,
terminal modifications, and the incorporation of modern technologies will be made
possible by cooperation with sector specialists and the use of global best practices. To
handle rising passenger volume and enhance the overall customer experience, terminal
facilities should be upgraded. The environmental sustainability of these upgrades should
likewise be a top priority.

b. Enhancing Baggage Security: To prevent baggage-related issues NAIA should invest in

advanced baggage handling technologies such as automated screening systems and CCTV
surveillance to detect and deter potential threats. Additionally, a robust baggage tracking
system should be implemented to minimize the risk of loss or theft. Regular maintenance
and testing of these systems are crucial to ensure their reliability.

c. Trustworthy Employees: NAIA can proactively optimize its employees and grow by
offering bundle promos or incentives for voluntarily retiring. Employees will be motivated
to retire freely if they are offered a well-thought-out retirement package. In addition, NAIA
can concentrate on appointing/hiring qualified people to key positions that will help
develop the airport. Implementing a thorough training program focusing on customer
service, security protocols, and ethical conduct will ensure employees are well-equipped
for their roles. Furthermore, fostering a culture of transparency, recognition, and
continuous professional development will promote trust and loyalty among the workforces.

d. Improving Globalization Efforts: NAIA should actively monitor and adopt global airport
trends to remain competitive in the industry. Conducting benchmarking studies,
participating in international conferences, and establishing partnerships with leading
airports will provide valuable insights into best practices and innovations. NAIA should
 embrace emerging trends such as sustainable practices, digital transformation, and
passenger-centric services to enhance the overall airport experience and meet the evolving
expectations of global travelers.

In conclusion, by implementing a comprehensive approach that addresses infrastructure upgrades,

enhances baggage security, builds trustworthy employees, and Improving Globalization Efforts, NAIA
can foster financial growth and strengthen its globalization efforts. Through strategic utilization of the
retrenchment strategy, NAIA can optimize resources, streamline operations, and drive efficiency while
remaining focused on achieving its financial objectives. By committing to continuous improvement
and innovation, NAIA can enhance its reputation, provide passengers with a seamless travel experience,
and contribute to overall economic development.

VII. Implementation Program

a. Management Plan

Despite of being the primary gateway of the Philippines to the rest of the neighboring
countries, the Ninoy Aquino International Airport or also known as NAIA, has ranked as one of
the worst airports in Asia and in the whole wide world because of its basic complaints regarding its
old infrastructures and facilities, and a-not-so-friendly service passenger receive. In short, NAIA
gives a less than satisfactory travel experience for its customers or passengers. To improve the
financial performance by cutting costs and streamline operations and focusing on the main or core
activities of NAIA, the group has decided to come up with a management plan that will implement
the strategic proposal that has been discussed.

President Ferdinand “Bongbong” Marcos clarified early this year that he has no plan on
giving up the airport to the private management but would only have a management contract from
a private sector group that has a huge experience in managing and running ports and airports just
like in two airports in Cebu and Clark. This will help NAIA to improve globalization efforts and
maintain its competitiveness in the industry. In accordance with this, flagship projects and
accommodating private investments will pave the way in innovating emerging trends.
 Smart digital investments will most likely offer the potential to increase revenue and
lower costs. As it comes to advertising, digital storefronts with interactive displays, loyalty
programs, and mobile applications for passengers, digital tools are enabling fresh ideas. To provide
travelers and customers with a better experience, processes and services must be developed. A
seamless client experience in the airport is made possible by such a transformation, as is the
seamless integration of systems and services, including those provided by partners like airlines,
security, customs, concessions, and ground handlers. Just like in other leading international
airports, NAIA could create a website or application that will allow the passengers to get real-time
flight information and updates, navigate location, build their own itinerary, and provide feedback
that will help the airport to improve the efficiency of their services. Aside from this, installation of
automatic explosive detection algorithms and object recognition software can strengthen the
security of the airport by easily detecting prohibited items such as weapons, and drugs. CCTV and
personnel are not enough to establish a safe and secured baggage handling for theft or risk of loss
is inescapable. Using intelligent systems such as sensors and other related devices will control and
prevent such mishaps from happening.

Suspension due to explicit behavior of employees such as extorting money from foreigners
has become a hot topic not just in the airport, but also in social media. With this, passengers now
fear the possible entrants of other threats such as robbery and attacks. Maybe it is now the right
time to reduce employees as a response to economic and social difficulty by providing a great
retirement package deal and appointing qualified people in key positions. Installation of Employee
Management System will help in monitoring employee information, time and attendance, working
hours, and absences. This system will provide a report regarding the performance of each employee
in the airport. Aside from precautionary measures, protocols, training, and seminars, NAIA must
also conduct and encourage a healthy environment which is free from hostility by collaborating
with the employees. Employees must comply with all the legal and regulatory requirements such
as tax laws and company regulations in return for a favorable wage and fringe benefits.

To enhance the overall customer experience, it is best to upgrade facilities and

infrastructures in the area. Typical passengers can easily point out the problems faced by the
airport such as lack of clean and comfortable waiting areas, limited dining options, and damaged
escalators or comfort rooms. Along with updating runways, taxiways, and terminals, NAIA should
also update signages and other necessities to satisfy customer demands. Reduction in light
pollution, limiting toxic substances, and introducing biophilic design will strengthen the
airport’s sustainability credentials.
 The management implementation plan mentioned above will help us achieve the
recommendations mentioned in the previous page. In today’s situation where trends and
innovations are appearing from left to right, it is best to utilize these tools in order to mitigate
hazards, risks, and concerns especially those that are related in operations. The application of these
plans is crucial in ensuring customer satisfaction by optimizing tools and sustainability, and
providing efficient and safe operations and management for all passengers and employees.

b. Marketing Plan

The Market Development Strategy for NAIA (Ninoy Aquino International Airport) is
recommended to Manila International Airport Authority (MIAA).

The marketing plan aims to promote and develop the market for Ninoy Aquino International
Airport (NAIA) in the North American region. By leveraging market development strategy, NAIA
aims to attract more airlines, increase passenger traffic, and enhance its reputation as a leading
international airport. This plan outlines key objectives, target segments, marketing tactics, and
implementation timelines to achieve the desired outcomes.

1. Objectives for this marketing plan

1.1. Increase airline partnerships and routes from North American cities to NAIA.
1.2. Attract more North American tourists and business travelers to use NAIA as their
gateway to Southeast Asia.
1.3. Enhance NAIA's reputation as a reliable, efficient, and customer-centric airport.
1.4. Increase passenger traffic from North America by X% within the next year.

2. Target segments for this marketing plan

2.1. Leisure travelers: Individuals seeking vacation destinations, cultural experiences, and
adventure.
2.2. Business travelers: Professionals attending conferences, meetings, and exploring
business opportunities.
2.3. Overseas Filipino workers (OFWs): Filipinos residing or working in North America
who frequently travel to the Philippines.
2.4. Filipino-Americans: Second and third-generation Filipino-Americans visiting family
and exploring their heritage
3. Marketing tactics for this marketing plan
3.1. Airline Partnerships: Engage with major North American airlines to establish or
expand routes connecting NAIA to key cities in the region. Provide incentives such
as reduced landing fees, marketing support, and collaborative advertising campaigns.
3.2. Digital Marketing Campaigns: Develop a comprehensive online marketing strategy to
reach target segments effectively. Utilize social media platforms, search engine
advertising, and targeted email campaigns to raise awareness about NAIA's services,
connectivity, and travel convenience.
3.3. Trade Shows and Events: Participate in travel industry events and trade shows in
North America. Showcase NAIA's offerings, provide networking opportunities for
airlines and travel agencies, and distribute promotional materials highlighting the
airport's unique features.
3.4. Public Relations: Collaborate with travel influencers, bloggers, and media outlets in
North America to generate positive publicity for NAIA. Arrange press trips to
showcase the airport's infrastructure, services, and amenities.
3.5. Customer Experience Enhancement: Continuously improve the passenger experience
at NAIA by investing in infrastructure upgrades, streamlined check-in processes,
comfortable waiting areas, and efficient baggage handling systems.
3.6. Loyalty Programs: Implement a frequent flyer program for North American travelers,
offering exclusive benefits, discounts, and personalized services. Collaborate with
airlines to integrate their loyalty programs with NAIA's offerings.
3.7. Targeted Advertising: Advertise NAIA's unique selling points in print and digital
publications catering to the target segments. Place advertisements in travel magazines,
newspapers, and online platforms frequented by North American travelers.
3.8. Strategic Partnerships: Collaborate with tourism boards, hotels, and travel agencies to
create attractive travel packages that highlight the benefits of flying through NAIA.
Offer exclusive discounts, bundled deals, and seamless transfer options to enhance the
overall travel experience. Business travelers: Professionals attending conferences,
meetings, and exploring business opportunities.
3.9. Overseas Filipino workers (OFWs): Filipinos residing or working in North America
who frequently travel to the Philippines.
3.10. Filipino-Americans: Second and third-generation Filipino-Americans visiting
family and exploring their heritage
 4. Implementation timeline for this marketing plan
4.1. Month 1-2: Conduct market research, identify potential airline partners, and finalize
marketing budget.
4.2. Month 3-4: Develop digital marketing campaigns, including website enhancements,
social media strategy, and email marketing templates.
4.3. Month 5-6: Participate in trade shows and events, establish partnerships with
influencers and media outlets, and launch targeted advertising campaigns.
4.4. Month 7-8: Initiate discussions with potential airline partners, negotiate incentives,
and finalize route agreements.
4.5. Month 9-12: Implement customer experience enhancements, launch loyalty programs,
monitor campaign performance, and measure key performance indicators.

5. Monitoring and evaluation for this marketing plan

1.5. Regularly monitor key performance indicators, including passenger traffic from North
America, new airline partnerships, customer satisfaction scores, and brand.

c. Financial Plan

The only operational airport in Metro Manila is Ninoy Aquino International Airport. In contrast
to other airports, it can accommodate more local and international aircraft. Due to the Airport's
location near the Philippines' capital city, which makes it more convenient and accessible, many
local and foreign tourists preferred reserving their flights at NAIA. Additionally, with a total area
of about 65 hectares, Ninoy Aquino International Airport is currently the biggest airport in the
country. Despite being widely used and serving as the main entry point for the Philippines into the
rest of its neighbors, NAIA frequently receives complaints and other comments from its passengers.
The Ninoy Aquino International Airport, according to Franco Luna (PhilStar, 2022), has been
called the "worst business class airport in the world" after getting the lowest overall rating in recent
research. For this reason, the study comes up with an efficient recommendation to discourse the
issues. These include infrastructure upgrades, enhances baggage security, builds trustworthy
employees, and Improving Globalization Efforts, NAIA can foster financial growth and strengthen
its globalization efforts.

Planning in order to have a call of action with the purpose to address the issue, the financial
plan is essential that needs to negotiate. The recommendation seems to be a challenging approach
since it needs bigger funding. However, by utilizing a retrenchment strategy that makes adjustments
to the way they manage human resources. Retrenchment can be implemented through the use of
turnaround management techniques in order to get through the financial challenges that have
hindered the working environment. This is being done in order to maintain its financial stability.
Through this, the airport will obtain to implement a streamlined process which refers to the
improvement of the efficiency process within the airport. This will save the amount of finances in
operational costs, due to the fact that it will lead to automation and simplification of tasks by
adapting smart digital investment, which is one of the management implementations plans. Smart
digital investments can cut expenses and boost revenue. Furthermore, the Ninoy Aquino
International Airport (NAIA) has the support of the government. There is a budgetary allocation of
P43 million that seeks to support the construction, rehabilitation, and improvement of the country’s
transportation infrastructure, particularly in the aviation sector. This is in line with the mandate of
President Bongbong Marcos to put prime importance on enhancing our country’s transportation
system.

In conclusion, the planned significant projects and programs at the Ninoy Aquino International
Airport (NAIA) will certainly be funded. Aside from the deduction of operational costs by utilizing
a retrenchment strategy and adopting a smart digital investment that can increase income while
reducing costs that are under the proposed management plan is a method for the airport to allocate
funds. The government, with the approval of President Bongbong Marcos, put prime importance
on enhancing our country’s transportation system since NAIA is a primary well-known airport in
the country. Due to this, it will become possible to execute the recommendation.

d. Operational Plan

The objective of this operational plan is to improve the overall performance of NAIA by
focusing on key operational aspects such as quality, flexibility, speed, and dependability. The plan
aims to enhance the airport's services and operations to achieve its goal of becoming a world-class
international airport.

Conduct regular customer satisfaction surveys to identify areas for improvement. Implement
measures to enhance the overall passenger experience, such as improved signage, cleanliness, and
comfort facilities. Provide well-trained and courteous staff members to assist passengers and
address their concerns. Furthermore, the company should implement a proactive maintenance
program to ensure the airport's infrastructure and facilities are in optimal condition. Regularly
inspect and repair equipment, runways, terminals, and other critical areas to minimize downtime
and disruptions. Implement quality control measures to ensure compliance with safety standards
and regulatory requirements.

Moreover, developing contingency plans and procedures to handle unexpected events or

disruptions, such as weather-related incidents or system failures. Establish clear communication
channels and protocols to coordinate responses among stakeholders. Assess passenger traffic trends
and adjust resources, such as staffing levels, security measures, and immigration services, to meet
demand fluctuations effectively. Collaborate with airlines and ground handlers to optimize gate and
aircraft allocation based on changing flight schedules.
For the company’s operational efficiency, implement lean management principles to streamline
processes and eliminate non-value-added activities. Optimize staff scheduling and resource
allocation to minimize delays and queues. Utilize advanced technologies, such as biometric
authentication and automated check-in systems, to expedite passenger flow. Enhance baggage
handling processes, including automated baggage drop-off, efficient baggage screening systems,
and real-time tracking. Collaborate with airlines and ground handlers to ensure smooth and timely
baggage transfer between flights.
For dependability, establish robust operational and maintenance protocols to minimize
downtime and disruptions. Conduct regular equipment inspections, preventive maintenance, and
system backups to ensure dependability. Foster strong partnerships and collaboration with airlines,
ground handlers, government agencies, and other stakeholders to ensure smooth operations and
coordinated responses to challenges. Conduct regular meetings and forums to address concerns,
share best practices, and align goals.
The overarching goal of this operational plan is to transform NAIA into a world-class
international airport that consistently delivers high-quality services, operates with flexibility and
standard.

e. Human Resource Plan

NAIA or the Ninoy Aquino International Airport is known as the primary entry point of visitors
in the Philippines. The NAIA employees are expected to perform excellently while providing the
best possible services to the tourist visiting the Philippines since they are the first one who interact
with the tourist before entering the country and after visiting the Philippines. In the past years,
NAIA was getting backlash from the local and international tourist because of the employees that
commit unlawfully conduct and act beyond the scope of their job. Because of those issues
surrounding NAIA visitors are getting hesitant to visit our country and it leaves a bad reputation
for our airport and for our country. Having the right employees is important because it can help the
company to provide excellent services to their guests or customers. The researchers propose some
qualifications to improve customer service and reestablish the reputation of NAIA.

1. Conduct a monthly inspection: Monthly inspection is important since this will help
NAIA to make sure that each employee is doing their job properly and there is no
misconduct happening inside.

2. Reshuffle and retrenchment of employees: Retrenchment has a huge advantage for

NAIA since it can improve the performance of their workers not only that it can also
reduce poor work performance of the workers. After the retrenchment of the employees
the employees who are retained will be reshuffled to make sure that each employee can
explore new things that will help them improve their skills and knowledge.

3. Assign a person who has proper knowledge about the position: The government or
NAIA should assign a qualified person for higher positions since they have the proper
knowledge about the position, and they can motivate the employees to do their best at
work. Also, it can improve the performance of NAIA when it comes to producing
positive workforce and improved rules and regulation.

4. Conduct a training seminar for the employees: This can help NAIA to make sure
that their employees are well equipped with the knowledge about providing excellent
services to the visitors and make sure that they know the things that they shouldn’t do
while they are performing their jobs. Training seminars for the employees should be
conducted every year to make sure that the employees are updated with the new service
trends that they should do to make sure that they can accommodate the needs of the
guest or visitors.
VIII. Management Lessons Learned

The importance of the successful strategic management of Manila International Airport Authority
(MIAA) to operate Ninoy Aquino International Airport (NAIA) in tourism revolves around the variety of
customers the airport accommodates, including its passengers, commercial airlines to tour operators of the
tourism industry and other sectors, and airport commercial space tenants to airport service providers as the
other stakeholders. NAIA is an essential part of the country’s airport industry and air transport system as
the airport that most visitors to the Philippines use as their main gateway with the country's capital and a
hub for many well-known airlines. Its management is aimed to improve customer satisfaction and passenger
experience like these airlines. Since the NAIA comprises all the infrastructure required to let passenger and
freight be transported by air transportation, the main commercial objectives and priorities are needed to
maximize income by coordinating their facilities and resources. It is vital for the management of NAIA to
effectively offer a broad variety of facilities and services, from necessities such as air traffic control,
security, and safety systems, to commercial establishments for a smooth operation to ensure that the all the
aircraft of airlines the operates here can take off and land. Hence, since there haven't been enough
improvement made to the airport's infrastructure, especially the runways, there is now an ongoing state of
aviation traffic at NAIA, which is causing delays for both passengers and its aircraft.

The country's low aviation condition calls for enhancing the NAIA. Through the use of the information
and data that can be gathered from the external and internal analysis as well as the perspective of SWOT
analysis within this study, the strategic management of the Manila International Airport Authority (MIAA)
may address this problem faced by NAIA's strategic management. The establishment of growth, stability,
and retrenchment as alternative plans is strategically focused on resolving this recognized strategic
management's challenge. This leads in a decision for a shift toward the turnaround retrenchment strategy
as it offered the most optimistic way concerning a solution to the strategic problem and the restoration of
its initiatives to fulfill the goals it has set. As the NAIA strives to remain competitive in an increasingly
competitive commercial environment, a strategic management is vital in order to responds to critical
concerns, issues, and difficulties that MIAA may oversee. This proves that it is important to consider to
a long-term and sustainable development which comes with the acknowledgement and effective handling
of these matters. Problems like these should not be seen by the management as negative and harmful
circumstances that must be solved, but as possibilities that the NAIA may consider to reach its strategic
goals and objectives. Hence, the NAIA's management must continually evaluate all of the potential factors
that might affect the airport's operation and adapt its views accordingly. In order to help MIAA, contribute
developments with its objectives and generate strategies to accomplish them, it is indeed crucial to first
discover the challenges within the strategic management for NAIA.
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