Transportation Dept. to take legal action if PAL doesn't settle dues

ABS-CBN News

Posted at Sep 29 2017 09:08 PM

MANILA - Transportation Secretary Arthur Tugade has said his department would take legal action if Philippine Airlines (PAL) fails to settle within 10 days its unpaid government dues of over P7 billion.

This after President Rodrigo Duterte earlier this week threatened to shut down Ninoy Aquino International Airport (NAIA) Terminal 2, the flag carrier's hub, if PAL does not pay its government dues within deadline.

Officials earlier said PAL owes P6.965 billion to the Civil Aviation Authority of the Philippines (CAAP) and P322.1 million to the Manila International Airport Authority (MIAA).

Tugade said demand letters were sent to PAL as early as August last year. 

In a statement, PAL made the assurance that representatives have been meeting with the Department of Transportation (DOTr) and CAAP, saying that they are committed to working with the government towards an amicable settlement. 

PAL has come up with a proposal for the settlement, but Tugade said the DOTr has a counter-proposal, details of which he would not discuss with the media.