With PAL getting a lifeline, CAAP to collect P 570M
With Philippine Airlines (PAL) given access to an initial $20-million financing from its bankruptcy filing, the government plans to collect a total of P570 million in receivables that the flag carrier owed from landing fees.
Citing a report from Transportation Secretary Arthur Tugade, Finance Secretary Carlos Dominguez told reporters that PAL had yet to pay the Civil Aviation Authority of the Philippines (CAAP) an outstanding obligation amounting to P373 million, on top of PAL Express’ P197 million.
“Moving forward, PAL and PAL Express committed to make current all their obligations to CAAP, incurred from July 2021 onwards,” Tugade was quoted by Dominguez as saying.
Obligations before July, meanwhile, will be “subject to reconciliation and immediate payment, the terms of which to be agreed between CAAP and PAL (subject to final board approval),” Tugade told Dominguez.
Dominguez said that while Republic Act No. 10142, or the Financial Rehabilitation and Insolvency Act of 2010, waives all taxes and fees, including penalties, interests and charges slapped by the national and local governments, CAAP’s receivables from PAL were not covered by this law.
On Friday, PAL said the New York bankruptcy court allowed it to access the first $20 million of $505-million in debtor-in-possession financing.
Article continues after this advertisementLast week, Dominguez said the government may come to the rescue of PAL depending on the result of its bankruptcy proceedings.
