The Civil Aviation Authority of the Philippines has issued a cease-and-desist order against AirAsia Philippines over P271.94 million in unpaid obligations, while the airline maintained that its flights and services remain operational.
In an order dated June 2, CAAP said the airline’s outstanding balance stood at P271.94 million as of May 20, excluding applicable surcharges, penalties, and interest from delayed remittances.
CAAP said it earlier sent a formal demand letter on May 11 requiring the carrier to settle its obligations within the prescribed period.
The aviation regulator said it had yet to receive payment, an acceptable settlement proposal, or a satisfactory arrangement that would justify deferring enforcement action.
Under the order, the carrier may be required to stop commercial flight operations, business activities, and the use of airport facilities under CAAP jurisdiction three days after receipt of the directive, unless otherwise authorized by CAAP.
CAAP also said no operational accommodation or airport privilege would be extended without written authorization from its leadership.
Sought for comment, AirAsia Philippines said it remains fully operational despite the CAAP order.
“AirAsia Philippines assures the traveling public that it remains fully operational, with flights and services continuing as scheduled across its network,” the airline said in a statement.
It added that flights remain subject to standard operational factors, including weather conditions.
This version is safer because it avoids saying the airline “failed and refused,” softens the shutdown framing, and clearly includes the company’s side.