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Manila Bulletin devider Business devider Trade & Industry devider CAAP threatens AirAsia Philippines grounding over unpaid fees

CAAP threatens AirAsia Philippines grounding over unpaid fees

Published Jun 3, 2026 07:21 pm
The Civil Aviation Authority of the Philippines (CAAP) has issued a June 6 deadline for the local unit of Malaysian budget carrier AirAsia Bhd. to settle its outstanding financial obligations or face a potential suspension of its domestic flight operations.
The regulator described the payment demand as “the most practical and preferred course of action” to resolve a prolonged financial dispute with Philippines AirAsia Inc.
“AirAsia Philippines has been given until June 6, 2026 to settle its outstanding financial obligations,” CAAP said in a statement on Wednesday night, June 3, without disclosing the actual amount.
“The Authority and the airline have been in discussions on this matter since last year,” it added.
According to an InsiderPH report, AirAsia Philippines would be barred from operating at airports managed by CAAP if its remaining obligations remain unpaid.
The airline reportedly owes the regulator ₱271.94 million in outstanding obligations, which include air navigation charges, aircraft landing and parking fees, passenger service charges, and other related fees.
The amount is 67.4 percent lower than the amount stated in CAAP’s initial collection letter to AirAsia Philippines regarding its outstanding account, which stood at ₱833.66 million as of Dec. 31, 2025.
Without directly addressing the issue, AirAsia Philippines said in a statement that its flights would remain operational.
“AirAsia Philippines assures the travelling public that it remains fully operational, with flights and services continuing as scheduled across its network, subject to normal operational considerations such as weather and other standard factors affecting airline operations,” it said.
For its part, CAAP said it wants to avoid any instances of flight disruptions, noting that the consequences of even a single grounded flight could ripple far beyond the airport.
“Any interruption in airline operations carries significant consequences, including economic impacts, potential employment displacement and disruption to passenger and cargo services,” it said .
CAAP added that it will coordinate closely with AirAsia Philippines to ensure full regulatory compliance and the orderly conduct of its airport and aviation operations.
“CAAP remains firmly committed to upholding aviation safety, ensuring operational continuity, and maintaining regulatory compliance, while continuing to engage constructively with all stakeholders,” the agency said.

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Civil Aviation Authority of the Philippines (CAAP) AirAsia Philippines
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