Gov’t accepts P6 billion PAL settlement to pay arrears

October 6, 2017

The Duterte administration has accepted the P6 billion settlement offered by the Philippine Airlines (PAL) on its arrears for using Terminal 2 of the Ninoy Aquino International Airport, an official said on Friday.

"PAL has agreed to pay in full the P6 billion claims of the Civil Aviation Authority of the Philippines and the Manila International Airport Airport, which the Department of Transportation has accepted." said Presidential Spokesperson Ernesto Abella in a statement.

"The matter of PAL’s unpaid charges has been decisively settled. It is a clear reminder that when government prioritizes national interest citizens will cooperate," he added.

He said the P6 billion settlement fee will go a long way to help build much needed infrastructure to support the country's economic capabilities.

"We enjoin one and all to set aside self-interest and together build a nation worthy of the next generation," he said.

On September 26, President Rodrigo Duterte warned he would close the NAIA Terminal 2 if within 10 days PAL would not pay its unpaid charges to the government. The 10-day period was to be

PAL, owned by tycoon Lucio Tan, is exclusively using the NAIA Terminal 2. Celerina Monte/DMS