Flag carrier Philippine Airlines (PAL) has remitted P6 billion in unpaid navigational fees and other charges accumulated over the years, the Transportation department announced on Friday.
PAL Vice President for Legal Affairs Clara de Castro delivered the checks to the office of the Civil Aviation Authority of the Philippines (CAAP), the department said.
A check amounting P5,677,887,615 was turned over to CAAP chief accountant Raul Eusebio while another worth P258,594,230.33 was turned over to Manila International Airport Authority (MIAA) assistant general manager Arlene Britanico.
“PAL’s payment was made earlier than the December 2017 deadline,” the Transportation department noted.
President Rodrigo Duterte in September threatened to shut Terminal 2 of the Ninoy Aquino International Airport (NAIA-2), which PAL has been exclusively using for nearly two decades, if the Lucio Tan-owned airline failed to settle its arrears.
The Transportation department subsequently issued a final demand letter, noting that PAL had acknowledged owing the CAAP P6.97 billion and the MIAA another P322.i million.
It denied a PAL bid to pay off its arrears over seven years.
A settlement was reached within a 10-day deadline declared by Duterte, with the carrier announcing that it had agreed to pay P6 billion before the end of the year.