An airline insider, however, said they’re working to complete payments to the Civil Aviation Authority of the Philippines (CAAP) in the coming days.
InsiderPH previously reported AirAsia Philippines’ debt from air navigation, landing, and parking fees, as well as unremitted domestic passenger service charges, had ballooned to about P833.7 million before CAAP issued a final demand letter to the carrier last March 23.
Debt cut but not cleared
The airline, which changed leadership last month by appointing former Aboitiz executive Anna Lu as president and general manager, has been making payments despite tough conditions in the wake of the US war on Iran.
From over P800 million last March, it has reduced outstanding obligations to around P200 million, an insider explained on Monday.
CAAP had granted the carrier flexible payment terms to avoid disruptions, especially during the busy Holy Week and summer travel season.
Sanctions under review
The deadline lapsed on May 29 and CAAP is now considering sanctions, including suspending airport access for AirAsia personnel at key regional gateways such as Davao, Bacolod and Iloilo.
To prevent passenger disruptions, other airlines are usually asked to step in and mount rescue flights.
When AirAsia temporarily suspended its Davao route in 2024, the Gokongwei family-led Cebu Pacific offered affected passengers discounted fares of P1,000 for same-day bookings.
Shrinking network
AirAsia Philippines, the country’s third-largest airline behind Cebu Pacific and Philippine Airlines, has historically struggled with profitability, with pressures mounting further from soaring fuel prices and softer consumer demand amid the Middle East conflict.
Its operating fleet has been cut to an estimated 13 planes from as many as 24-25 operating aircraft before the pandemic.
The AirAsia Group, led by Malaysian tycoon Tony Fernandes, is responding to these challenges by temporarily suspending unprofitable routes.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
