Manila, Philippines – AirAsia Philippines, part of the regional AirAsia Group and led by Capital A CEO Tony Fernandes, received a warning from the Civil Aviation Authority of the Philippines (CAAP), citing 833.7m (USD $13.92m) worth of unpaid obligations, InsiderPH reported.
According to InsiderPH’s latest report, the amount covered by unpaid air navigation, landing, and parking fees, as well as unremitted domestic passenger service charges (DPSC), has been growing over the years.
“Despite repeated written demands, reconciliation meetings, and follow-ups, the foregoing obligations remained outstanding as of date. This continued non-compliance is a matter of serious concern to the Authority,” CAAP told InsiderPH.
Consequently, the sanctions provided by the CAAP included the withholding of services and accounting clearance, suspension or non-renewal of licenses and permits, as well as the revocation of access passes within CAAP’s facilities. Additionally, civil and criminal actions were also considered by the regulating body.
While the CAAP had instilled the consequences of the unpaid dues, it also emphasised the need to mitigate holiday travel risks, especially with the upcoming Holy Week travel the following week.
This, alongside the ongoing tension brought about by the US-Iran war, which impacted soaring oil prices, compounded the operational and financial pressures faced by the airline.
With a non-negotiable five-day deadline to settle, the domestic carrier had not yet issued a response as of March 24.
