CAAP gives AirAsia Philippines until June 6 to pay debts
MANILA, Philippine – The Civil Aviation Authority of the Philippines (CAAP) on Wednesday has given AirAsia Philippines until June 6 to settle its outstanding obligations, while favoring a negotiated settlement to avoid operational disruptions.
“Caap clarifies that AirAsia Philippines has been given until June 6, 2026 to settle its outstanding financial obligations. The Authority and the airline have been in discussion on this matter since last year,” the agency said in a statement.
READ: AirAsia Philippines says flights to continue amid unpaid fees
“Any interruption in airline operations carries significant consequences, including economic impacts, potential employment displacement and disruption to passenger and cargo services,” it added. “Accordingly, the settlement of the obligations remains the most practical and preferred course of action.”
The statement came after reports, first published by Politiko, that Caap had issued a cease-and-desist order against AirAsia Philippines on June 2 over alleged unpaid obligations amounting to P271.94 million.
Failure to settle the amount could effectively bar the airline from operating in government-run airports, the report said.
Caap operates 44 of the country’s 48 airports.
Limited access
Should AirAsia Philippines be barred from those gateways, its operations would be limited to airports outside Caap’s control, namely Ninoy Aquino International Airport, Mactan-Cebu International Airport, Clark International Airport and Caticlan Airport.
In March, Caap issued a collection letter to AirAsia Philippines as part of what the agency described as its “regular business processes.”
While Caap did not disclose the amount involved in its public advisory, citing data privacy rules, a copy of the collection letter addressed to AirAsia Philippines president Suresh Bangah showed unsettled accounts receivable amounting to P833.67 million as of Dec. 31, 2025.
Caap again did not confirm the airline’s current outstanding balance, but said it “continues to coordinate closely with the airlines regarding their financial obligations to the Authority to ensure full regulatory compliance and the orderly conduct of airport and aviation operations.”
“Caap remains firmly committed to upholding aviation safety, ensuring operational continuity, and maintaining regulatory compliance, while continuing to engage constructively with all stakeholders,” it added.
For now, the regulator confirmed that AirAsia Philippines services continue to operate normally.
