CAAP, Philippine Airlines in talks to settle unpaid dues

Philippine Airlines (PAL) and the Civil Aviation Authority of the Philippines (CAAP) are now discussing the flag carrier's offer to settle its unpaid navigational charges.

"The CAAP met today with PAL representatives on the issue of the latter's unpaid air navigation fees and other charges due to the government aviation regulator," CAAP spokesperson Eric Apolonio said.

During the meeting, CAAP reiterated its demand for PAL to pay P6,965,146,149.63 as of July 31, 2017, the aviation official said.

"In the said meeting, PAL representatives assured the government of the company's willingness to continually cooperate for the early resolution of this matter," he added.

PAL external communications head and spokesperson Cielo Villaluna said the flag carrier is coordinating with the aviation regulator to settle the issue of unpaid obligations.

"PAL is working with CAAP on the resolution of the issue. Both sides are in constant communication to close the issue once and for all," Villaluna said in a text message.

In a statement, the airline also said that it is "committed to continue working with the CAAP towards an amicable settlement within the next few days."

The statement came a day after PAL announced it was willing to submit a compromise agreement to settle the issue.

The Department of Transportation (DOTr) demanded that PAL pay in full its navigational fess and other charges or face a possible lawsuit.

The DOTr claimed that the Civil Aviation Authority of the Philippines (CAAP) has total collectibles from PAL amounting to P6,965,146,149.63 as of end-July 2017 and P322,112,385 and payable to the Manila International Airport Authority (MIAA).

President Rodrigo Duterte called on tycoon Lucio Tan to pay the airport charges in 10 days, or else stop operating at the Ninoy Aquino International Airport (NAIA).

"Rest assured that CAAP shall be consistent and firm in its stance to collect what is long overdue to the government, while putting the welfare of the riding public as its topmost priority," Apolonio said. — VDS/BM, GMA News