AirAsia Philippines has settled its P271.94 million in outstanding obligations to the government, averting a possible suspension of its operations, the Civil Aviation Authority of the Philippines said Thursday.
CAAP said the budget carrier complied with the directive to settle its dues on the morning of June 4, subject to standard reconciliation processes.
“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 settlement came after CAAP warned that AirAsia Philippines could be ordered to halt all commercial flights, suspend business activities and lose access to CAAP-managed airport facilities if it failed to settle its financial obligations.
“CAAP remains committed to working closely with all aviation stakeholders to ensure regulatory compliance, maintain the stability of air transport operations, and safeguard the interests of the traveling public,” the agency said.
The development removes the immediate suspension threat against AirAsia Philippines and allows its operations to continue while reconciliation procedures are completed.