AirAsia pays dues, avoids exit from gov’t airports
MANILA, Philippines – AirAsia Philippines has settled its outstanding obligations with the Civil Aviation Authority of the Philippines (Caap), averting the enforcement of an order that would have required the carrier to vacate government-run airports.
In a statement, Caap said AirAsia Philippines had paid the dues on Thursday morning, two days before the June 6 deadline given to the airline to settle P271.94 million in outstanding obligations.
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,” the regulator said.
The agency added that the settlement remains “subject to ongoing standard reconciliation processes.”
AirAsia Philippines’ obligations cover unpaid air navigation charges, aircraft landing and parking fees, passenger service charges and other airport-related assessments.
On May 11, Caap issued a formal demand letter to the airline, part of the Malaysia-based AirAsia Group, after the account remained unsettled.
In a cease-and-desist order dated June 2 and addressed to AirAsia Philippines president and general manager Anna Victoria Lu, Caap said that it had “not received any payment, acceptable settlement proposal, or other satisfactory arrangement that would warrant the deferment of enforcement measures.”
Thus, the regulator ordered the airline to vacate government-run airports if the obligations were not settled by June 6.
AirAsia Philippines operates flights in six of the 44 airports that Caap operates.
Had the airline failed to meet the deadline, its operations would have been limited to airports outside Caap’s jurisdiction, namely Ninoy Aquino International Airport, Mactan-Cebu International Airport, Clark International Airport and Caticlan Airport.
In a statement issued after the settlement was announced, AirAsia Group said reports suggesting its Philippine operations were being grounded were “entirely false” and “do not reflect the reality of the business or operations of the airline.”
“AirAsia Group views these coordinated and sensationalized 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.
In fact, AirAsia Group was planning further investments in its Philippine arm, including expanding its existing fleet.
“As we expand our fleet and aircraft orderbook to become the first narrowbody global low-cost network carrier, we intend to deploy more aircraft into our operations in the Philippines,” AirAsia cofounder Tony Fernandes said in a statement.
“We are deeply invested in the country, its people and its future,” Fernandes added.
AirAsia Group launched its Philippine operations in 2012. It also operates airlines in Thailand, Indonesia and Cambodia. INQ
