PAL “ready to submit” compromise on navigational charges

September 27, 2017

Philippine Airlines said it submitted its offer to pay navigational charges to the Civil Aviation Authority of the Philippines "which is more than the amount covered by the CAAP supporting invoices received by PAL."

In a statement, PAL said "it has not received any official response from the CAAP on its offer." The airline did not reveal the amount it offered to pay.

PAL said CAAP created an inter-agency panel of negotiators for the proposed settlement via CAAP Authority Order 149-17.

"We look forward to meeting the negotiating panel and we are ready to submit a Compromise Agreement to settle this issue once and for all," said PAL.

In August 2016, the CAAP sent letters to PAL demanding payment of unpaid navigational charges in the amount of P 6.63B.

"This issue on alleged unpaid navigational charges involves complex legal issues which PAL has been trying to thresh out with the Authority for years," the airline's statement said.

"The same legal issues were the subject of a court case between PAL and the MIAA years back where the court ruled in favor of PAL. Despite the favorable ruling, PAL then opted to settle amicably with the MIAA as a manifestation of its full support of the government," PAL said.

The airline said for the past months, both CAAP and PAL have been working to validate these claims in their effort to settle this obligation.

"PAL has fully cooperated and will continue to cooperate with any and all agencies to resolve this concern," the airline said. DMS