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Elijah Felice Rosales - The Philippine Star
June 5, 2026 | 12:00am
CAAP yesterday confirmed that AirAsia Philippines has paid its immediate balance of P271.94 million ahead of the June 6 deadline set by the agency.
Walter Bollozos
MANILA, Philippines — Low-cost carrier AirAsia Philippines has settled its outstanding balance of close to P272 million to the Civil Aviation Authority of the Philippines (CAAP) to avert suspension of local flights.
CAAP yesterday confirmed that AirAsia Philippines has paid its immediate balance of P271.94 million ahead of the June 6 deadline set by the agency.
“CAAP confirms that AirAsia Philippines has complied with the directive to settle its obligations [on the] morning of June 4, subject to ongoing standard reconciliation processes,” CAAP said.
Had AirAsia Philippines neglected the demand, it could have led to potential disruptions in flight operations. CAAP can choose to bar the airline from landing in regional airports that it operates.
Still, CAAP said it is committed to sorting out issues with stakeholders. The agency underscored the importance for airlines to comply with regulatory obligations to the government.
In response, AirAsia Group boss Tony Fernandes responded to claims that AirAsia is grounding flight operations in the Philippines, saying that there is no truth to any of this.
“All (AirAsia) flights remain fully operational, with flights and services continuing as scheduled across the network, subject to normal operational considerations like weather and other standard factors affecting airline operations,” AirAsia said.
Fernandes said AirAsia has no plans of neglecting its Philippine unit, especially as it flies nearly seven million guests annually.
“We are deeply invested in the Philippines, its people and its future. For over a decade, we have played a key role in democratizing air travel by making flying accessible to millions of Filipinos who may not otherwise have had the opportunity to travel by air,” Fernandes said.
The airline believes there is a coordinated attack against it that could undermine fair competition. AirAsia said if such narratives win and the airline leaves the country, Filipinos will be stuck with limited options for air travel.
In the end, AirAsia warned that reduced competition in the aviation industry would not only reduce choices, but jack up airfares as well.
Prior to this, CAAP had reported that AirAsia Philippines is struggling to pay its overdue balance of more than P800 million for operating in CAAP-operated gateways.
