The Market Monitor Minding the Nation's Business
AirAsia Philippines finally paid its P271.94 million debt to government, averting suspension of its operations.
The Civil Aviation Authority of the Philippines (CAAP) confirmed the payment but noted the funds will be subject to standard reconciliation processes.
CAAP earlier warned that failure to pay would force the government regulator to halt the airline’s operations including all flights, business activities and access to CAAP-managed airport facilities.
“CAAP acknowledges and appreciates the airline’s cooperation and its commitment to addressing its obligations through constructive engagement and coordination with the Authority,” CAAP said in a statement.
Parent company AirAsia Group strongly denied media reports that its local subsidiary was being grounded.
The airline operator said all its flights remain fully operational and continue as scheduled across the network.
AirAsia Group labeled the media reports as a deliberate smear campaign designed to limit consumer choice and foster a market monopoly that would lead to higher airfares.
AirAsia Group co-founder and advisor Tony Fernandes said the airline carries almost 7 million guests in the country annually and remains deeply invested in the Philippines.
“For over a decade, we have played a key role in democratizing air travel, making flying accessible to millions of Filipinos who may not otherwise have had the opportunity to travel by air,” Fernandes said.
Fernandes said the group plans to deploy more modern aircraft to the Philippines as it expands its global fleet. The expansion plans infrastructure developments at Ninoy Aquino International Airport and Mactan-Cebu International Airport to improve operational efficiency and lower costs.
“These developments will allow Philippines AirAsia to expand our network, offer even more competitive fares and continue delivering greater value to Filipino travelers,” Fernandes added.