By Ashley Erika O. Jose, A reporter
AIRASIA Philippines has settled its financial obligations with the Civil Aviation Authority of the Philippines (CAAP), avoiding possible disruptions in its operations at government-run airports.
“CAAP confirms that AirAsia Philippines complied with the order to resolve its obligations this morning, June 4, subject to ongoing reconciliation processes,” the regulator said in a statement on Thursday.
The agreement comes after earlier reports that the regulator issued a cease-and-desist order on June 2, ordering the carrier to cease operations within three days if unpaid fees are not settled.
Unpaid obligations amounting to P271.94 million were linked to airport-related expenses, including cruise charges, landing and parking fees and passenger service charges.
CAAP said this includes unpaid terminal fees collected from passengers, as well as amounts tied to expired and unused tickets held in trust by the authorities.
CAAP has previously warned that failure to fulfill obligations may lead to the suspension of operations at airports under its jurisdiction.
It also noted that discussions with AirAsia Philippines have been ongoing since last year as part of efforts to resolve the issue without service disruption.
The regulator said it had given the airline until June 6 to fully settle its accounts, but confirmed that payment had already been made before the deadline.
It added that it appreciates the cooperation of the airline and said that this decision supports the order of air operations in the country.
“Any disruption to airline operations has significant consequences, including economic impacts, possible layoffs and disruption of passenger and cargo services,” CAAP said. “Thus, decommissioning remains a viable and popular course.”
In March, CAAP issued a demand letter against AirAsia Philippines, ordering the airline to pay unpaid obligations, including airport charges and unpaid passenger fees amounting to P833.66 million.
AirAsia Philippines on Wednesday said its flights continue to operate as scheduled across its network.
The carrier did not directly address the details of the obligations but said operations remain unaffected, subject to general factors such as weather conditions and operational requirements.
AirAsia has been facing increasing scrutiny over its cash balances, which regulators say were accumulated over several years.
In a statement, AirAsia X Bhd., speaking on behalf of the group, denied reports that AirAsia Philippines will be illegal, calling them inaccurate and suggesting that they are part of a wider campaign targeting the airline. It said operations in the Philippines remain stable and unaffected.
The group also said that all flights and services will continue as planned. It added that AirAsia remains focused on maintaining low-cost air travel and expanding connectivity to the Philippines, one of its key Southeast Asian markets.
AirAsia Group advisor and co-founder Tony Fernandes said the airline continues to see strong long-term prospects in the Philippines, supported by the development of aviation infrastructure, including developments at Ninoy Aquino International Airport and Mactan-Cebu International Airport.
He said the planned fleet expansion will allow the airline to increase capacity and improve efficiency, be able to serve more passengers and strengthen its regional network.
AirAsia is part of a wider group of low-cost carriers that operate across Malaysia, Thailand, Indonesia, the Philippines and Cambodia. Its Philippine division started operations in 2012 and has grown to serve millions of passengers every year.
