AirAsia Group denied reports that Philippines AirAsia is being grounded, saying all of its local flights remain operational despite a Civil Aviation Authority of the Philippines deadline for the airline to settle its unpaid obligations.
“All Z2 flights remain fully operational, with flights and services continuing as scheduled across the network, subject only to standard operational factors such as weather,” AirAsia Group said in a statement.
The airline issued the denial after CAAP gave AirAsia Philippines until June 6 to settle its outstanding financial obligations to the government.
CAAP data showed that AirAsia’s balance stood at ₱271.94 million as of May 20, excluding penalties, surcharges and interest.
On June 2, CAAP issued a cease and desist order against AirAsia Philippines over the unpaid amount. The regulator said it had earlier sent a formal demand letter on May 11, but the airline failed to settle the accounts, submit an acceptable payment proposal or make satisfactory arrangements to defer enforcement.
CAAP said the order would take effect three days after receipt. Once effective, it would require AirAsia Philippines to stop commercial flights, business activities and use of CAAP-managed airport facilities unless explicitly authorized in writing by the agency.
AirAsia Group, however, said reports claiming that its Philippine operations are being grounded are “entirely false” and do not reflect the airline’s actual operations.
The group also alleged that the reports were “coordinated and sensationalized,” describing them as part of a long-running smear campaign meant to weaken fair competition in the Philippine aviation sector.
“A monopoly benefits no one except dominant market players,” AirAsia said, warning that reduced competition could lead to fewer choices and higher airfares for passengers.
AirAsia Group co-founder and adviser Tony Fernandes said the airline remains committed to the Philippine market, where it carries nearly seven million passengers every year.
“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.
“Our commitment to the Philippines is absolute. We are deeply invested in the country, its people and its future,” he added.
Fernandes said AirAsia intends to deploy more aircraft to the Philippines as it expands its fleet and supports new airport infrastructure, including developments at the Ninoy Aquino International Airport and Mactan-Cebu International Airport.
“These developments will allow Philippines AirAsia to expand our network, offer even more competitive fares and continue delivering greater value to Filipino travelers,” he said.
Philippines AirAsia said it remains committed to public service, tourism growth and economic development, while continuing to provide Filipinos with safe, affordable and reliable air travel.