AirAsia Philippines settles CAAP dues; hits ‘smear campaign’

MANILA, Philippines – Low-cost carrier AirAsia Philippines settled its outstanding obligations with the Civil Aviation Authority of the Philippines (Caap) averting a potential ban at government-run airports.

Caap said AirAsia Philippines paid its outstanding obligations on Thursday morning, although the settlement remains “subject to ongoing standard reconciliation processes.”

READ: CAAP gives AirAsia Philippines until June 6 to pay debts

“Caap acknowledges and appreciates the airline’s cooperation and its commitment to addressing its obligations through constructive engagement and coordination with the Authority,” it said in a statement.

AirAsia Philippines had P271.94 million in unpaid fees as of May 20, covering air navigation charges, aircraft landing and parking fees, passenger service charges and other airport-related assessments.

On June 2, Caap issued a cease-and-desist order directing the airline, part of the Malaysia-based AirAsia Group, to stop operating at airports under the regulator’s jurisdiction unless its obligations were settled.

AirAsia Philippines operates flights in six of the 44 airports that Caap operates.

Had the airline failed to pay by June 6, Caap would have limited its operations to airports outside the regulator’s control, including NAIA, Mactan-Cebu, Clark and Caticlan airports.

‘Deliberate smear campaign’

In a separate statement on Thursday, AirAsia Group dismissed reports that its Philippine operations were being grounded, calling them “entirely false” and unreflective of the airline’s actual operations.

“AirAsia Group views these coordinated and sensationalised reports as part of a deliberate smear campaign that has long been occurring aimed at undermining fair competition in the Philippine aviation sector,” the airline said.

“Such narratives serve only the interests of those seeking to limit consumer choice and create conditions that could lead to a monopoly in the market,” it added.

Following the development, AirAsia co-founder Tony Fernandes reiterated the airline’s commitment to the Philippine market.

“AirAsia has long championed affordable travel and will continue to stand firmly against any development that harms consumers or restricts access to air connectivity. We are deeply invested in the country, its people and its future,” Fernandes said. /pai INQ