PAL Vows to Cooperate on Multi-Billion Debt Issue After Pres. Duterte's Ultimatum


The country's flag carrier, Philippine Airlines (PAL) vows to cooperate with the Philippine government to settle billions of pesos of alleged debts after Pres. Rody Duterte released an ultimatum to to the company's major shareholder, Lucio Tan to settle his debts within 10 days.



According to the official statement of PAL on Wednesday they said it will "continue to cooperate" with the government to finally to resolve "complex legal issues," which PAL has been threshing out with the Civil Aviation Authority of the Philippines (CAAP) for years.

PAL confirmed that they received an August 2016 letter from the Department of Transportation (DOTr) demanding payment of unpaid navigational charges amounting to P6.63 billion.

The DOTr on Wednesday said PAL must now pay over P7.28 billion. The amount is for the P6.96 billion to be paid to the Civil Aviation Authority of the Philippines (CAAP) as of July 30, and P322 million to the Manila International Airport Authority (MIAA) as of September 26.

PAL also said that the Philippines largest airlines already submitted an offer to the CAAP through its inter-agency panel of negotiators, but has not received response yet.

"We look forward to meeting the negotiating panel and we are ready to submit a Compromise Agreement to settle this issue once and for all," PAL added.

The Philippine Airlines (PAL) was a government-owned and controlled corporation with tax privileges and exemptions prior to its privatization in 1992.

The issue on PAL's alleged unpaid debts to the Philippine government steam after Pres. Duterte warned PAL to settle its debts or he will have to shut down the Ninoy Aquino International Airport (NAIA) Termina 2, which PAL exclusively uses for most of its regional and international flights.

Source: CNN Philippines


PAL Vows to Cooperate on Multi-Billion Debt Issue After Pres. Duterte's Ultimatum PAL Vows to Cooperate on Multi-Billion Debt Issue After Pres. Duterte's Ultimatum Reviewed by Phil Newsome on 9/28/2017 Rating: 5

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