AIRASIA Philippines is facing an operational shutdown and has been given three days to settle P271.94 million in unpaid obligations to the government.
A June 2 cease and desist order issued by the Civil Aviation Authority of the Philippines (CAAP) said the budget carrier would be barred from government-managed airports.
The amount, which according to reports had been pared down from the P833.7 million cited in an initial CAAP demand letter, covers air navigation charges, landing and parking fees, passenger service charges and other airport-related assessments.
The P271.94 million excludes penalties, surcharges and interest.
The CAAP said that AirAsia Philippines had failed to settle the accounts, offer an acceptable payment proposal, or make satisfactory arrangements to defer enforcement.
The cease and desist order will take effect three days after receipt by the airline.
Once active, AirAsia Philippines will be forced to immediately halt all commercial flights, business activities and use of CAAP-managed airport facilities.
AirAsia Philippines, which has previously said that efforts were being made to settle the obligations, on Wednesday assured passengers that its schedule remained uninterrupted.
“AirAsia Philippines assures the traveling 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 in a statement.
FROM REPORTS BY TMT, ED PAOLO SALTING
