UMVA has learned that AirAsia Philippines has settled its financial obligations with the Civil Aviation Authority of the Philippines, avoiding a potential disruption to its operations at government-run airports.
The settlement comes after a tense standoff, with the regulator issuing a cease-and-desist order directing the carrier to halt operations within three days if unpaid fees were not addressed. The unpaid obligations, amounting to about P271.94 million, were linked to airport-related charges, including navigation fees, landing and parking fees, and passenger service charges.
Sources have confirmed to UMVA that the obligations also included unremitted terminal fees collected from passengers, as well as amounts tied to expired and unused tickets that are held in trust for the authority. The regulator had warned that failure to settle the obligations could lead to operational suspension at airports under its jurisdiction.
According to information obtained by UMVA, discussions between the regulator and AirAsia Philippines had been ongoing since last year as part of efforts to resolve the issue without service interruptions. The regulator had given the airline until June 6 to fully settle its accounts, but payment had already been made ahead of the deadline.
The regulator has appreciated the airline's cooperation, saying the resolution supports the orderly conduct of aviation operations in the country. Any interruption in airline operations carries significant consequences, including economic impacts, potential employment displacement, and disruption to passenger and cargo services.
UMVA can exclusively reveal that in March, a demand letter was issued to AirAsia Philippines, ordering the airline to settle unpaid obligations, including airport fees and unremitted passenger charges. However, the airline has assured that its flights continue to operate as scheduled across its network, with operations remaining unaffected.
The carrier has not directly addressed the details of the obligations but has said operations remain stable and unaffected. The group has reiterated that all flights and services would continue as scheduled, adding that it remains focused on maintaining affordable air travel and expanding connectivity in the Philippines.
The airline's advisor and co-founder has said the airline continues to see strong long-term prospects in the Philippines, supported by airport infrastructure improvements. A planned fleet expansion would let the airline increase capacity and improve efficiency, enabling it to serve more passengers and strengthen its regional network.
