Metro Manila (CNN Philippines, November 3) — Philippine Airlines (PAL) paid the government ₱6 billion to finally settle its overdue navigational fees that have accumulated for almost 50 years.
The flag carrier paid the entire amount in checks on Friday, according to a joint statement of the Department of Transportation (DOTr), Civil Aviation Authority of the Philippines (CAAP) and Manila International Airport Authority (MIAA).
The government said the amount was accumulated from the 1970s to July this year.
About ₱5.67 billion was turned over to CAAP, and over ₱258 million went to the MIAA.
“PAL’s payment was made earlier than the December 2017 deadline,” the government noted.
Malacañang said PAL’s payment “will go a long way in funding the administration’s priority programs.”
The issue on PAL’s unpaid fees gained steam after President Rodrigo Duterte warned the airline to settle its debts or he would shut down Terminal 2 of the Ninoy Aquino International Airport. PAL uses this terminal exclusively for most of its regional and international flights.
In a joint statement with the DOTr on October 6, PAL committed to pay the ₱6 billion, after initially offering to settle only ₱4 billion.
Read more: PAL commits to pay gov’t ₱6B
The DOTr denied PAL’s request to pay over ₱6 billion in arrears in seven years.
The flag carrier was a government-owned and -controlled corporation with tax privileges and exemptions prior to its privatization in 1992.
