PAL finally pays P6-billion debt to government since 1970’s

Philippine Airlines (PAL) today paid up its PHP6 billion unpaid air navigational charges to the national government incurred from 1970’s up to 30 July 2017, the Department of Transportation (DOTr) said.

“Atty. Clara De Castro, PAL Vice President for Legal Affairs, brought the company checks to the office of the Civil Aviation Authority of the Philippines (CAAP) in Pasay to settle its financial obligations to the government,” DOTr said.

PAL submitted two checks. “The check amounting to PhP5,677,887,615 was turned over to CAAP Chief Accountant Raul Eusebio,” DOTr said.

DOTr photo

“The check worth PhP258,594,230.33, net of taxes, was turned over to Manila International Airport Authority (MIAA) Assistant General Manager for Finance and Administration Arlene Britanico,” it added.

In October 2017, PAL and DOTr said in a joint statement that after several months of validation and reconciliation of accounts they have reached a resolution on the CAAP and MIAA fees issue.

“The DOTr has accepted the offer of PAL to pay in full the P6B claims of the CAAP/MIAA, and PAL commits to keep all transactions updated and current with the CAAP/MIAA,” PAL and DOTr said in the statement.

“One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte’s administration,” they said. “PAL assured the government and the traveling public that it will continuously provide its vital airline operations in the service of the Filipino people.”