Philippine Airlines has backed down in its spat with the government and agreed to pay 6 billion pesos ($117 million) in arrears for aviation fees.
PAL has managed to negotiate a 1 billion peso discount despite President Duerte threatening to close down its Manila Airport terminal
In a joint statement, PAL and the transportation department said they had resolved their issues.
It came just as Duerte’s 10-day deadline to pay up was due to expire.
The fees are owed to the Civil Aviation Authority of the Philippines and Manila International Airport Authority and date back several years.
PAL said the ‘alleged unpaid navigational charges involves complex legal issues which PAL has been trying to thresh out with the [government] for years.’
"One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte’s administration," PAL said.
