Transport department says PAL must settle P7.28 billion dues

September 27, 2017

The Department of Transportation warned it will file a case against Philippine Airlines (PAL) if the latter fails to settle unpaid navigational fees and other charges due to the government amounting to P7.28 billion as of September.

As early as August 2016, Transport Secretary Arthur Tugade sent a letter to PAL to demand full payment of all unpaid charges.

“As a result, discussions were undertaken with PAL to reconcile invoices and documents, which lead to PAL's payment to CAAP [Civil Aviation Authority of the Philippines] of P370 million,” DOTr said.

“PAL also requested to discuss the possibility of paying its arrears in seven years. All such requests have been denied. Thus, final demand for full payment of all unpaid charges has been sent to PAL, preparatory to the filing of appropriate legal action in order to protect the interest of government,” it added. DMS