AirAsia Philippines settles CAAP dues, averts flight disruption threat
MANILA, Philippines — AirAsia Philippines has settled its financial obligations with the Civil Aviation Authority of the Philippines, averting the threat of a possible disruption to its operations after the carrier had reportedly been ordered to halt flights at government-managed airports over unpaid fees.
CAAP said Thursday, June 4, that the airline had complied with its directive to settle its obligations within the day, subject to the regulator’s standard reconciliation process.
The development followed reports that CAAP had ordered AirAsia Philippines to stop operating within its jurisdiction unless it settled more than P270 million in unpaid fees. The reports said the directive was contained in a June 2 cease-and-desist order issued by CAAP Director General Raul Del Rosario.
CAAP had earlier given the airline until June 6 to settle its dues.
"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 in a statement.
The agency said Wednesday night that settling the obligations remained the "most practical and preferred course of action," citing the potential fallout of any disruption to airline operations.
"Any interruption in airline operations carries significant consequences, including economic impacts, potential employment displacement, and disruption to passenger and cargo services," CAAP said.
AirAsia denies grounding
AirAsia denied that its Philippine operations were being grounded, saying all Z2 flights remained fully operational and continued as scheduled.
In a separate statement issued from Sepang, Malaysia, AirAsia X, which identified itself as AirAsia Group, said reports claiming that Philippines AirAsia’s operations were being grounded were "entirely false and do not reflect the reality of the business or operations of the airline."
The company said flights and services across the airline’s network would continue, subject to normal operational factors such as weather.
AirAsia also cast the reports as part of a campaign against the airline, saying they were aimed at undermining competition in the Philippine aviation sector.
Tony Fernandes, co-founder and adviser of AirAsia Group, said the airline carries nearly 7 million passengers in the Philippines annually and remains committed to the country.
"AirAsia has long championed affordable travel and will continue to stand firmly against any development that harms consumers or restricts access to air connectivity," Fernandes said.
He said the group remains invested in new airport infrastructure in the Philippines, including Ninoy Aquino International Airport and Mactan-Cebu International Airport, and intends to deploy more aircraft into its domestic operations.
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