Philippine Airlines, gov't reach P6-billion 'resolution'

ABS-CBN News

Posted at Oct 06 2017 05:01 PM

MANILA - The Department of Transportation and Philippine Airlines said Friday they reached a "resolution" over alleged unpaid fees.

In a joint statement, the government agency and the flag carrier said PAL would pay P6 billion in claims from the Civil Aviation Authority of the Philippines and the Manila International Airport Authority.

Philippine Airlines also committed to "keep all transactions updated and current" with the CAAP and MIAA, according to the statement.

President Rodrigo Duterte last month said he would shut PAL's hub at Terminal 2 of the Ninoy Aquino International Airport unless the airline settled its liabilities.

"One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte's administration," according to the joint statement.