MANILA - Flag carrier Philippine Airlines on Friday settled P6 billion in navigational fees and other charges it owed government, just a little over a month after President Rodrigo Duterte threatened to shut down its operations over the debt.
"We are pleased to announce that PAL’s financial obligations to the government amounting to P6 billion, which were incurred since 1970s up to July 2017, have finally been settled," said Presidential Spokersperson Harry Roque in a statement.
Clara De Castro, PAL Vice President for Legal Affairs, delivered the payment in checks at the office of the Civil Aviation Authority of the Philippines (CAAP), according to a joint statement by the Department of Transportation (DOTr), the Manila International Airport Authority (MIAA) and CAAP.
PAL paid P5.68 billion to CAAP and P258.6 million to MIAA.
In September, Duterte threatened to shut down the Ninoy Aquino International Airport (NAIA) Terminal 2, PAL's hub, if the airline won't settle its unpaid dues.
The airline and DOTr reached a P6-billion resolution in October.
PAL was given until December 2017 to settle the unpaid charges. Roque said this conclusion highlighted the administration's commitment to "decisively act on matters that would greatly benefit the nation’s best interest."
"This settlement will go a long way in funding the administration's priority programs," Roque added.