Flag carrier Philippines Airlines says it is fully cooperating with the government to resolve a debt of $143 million for airport related fees owed to the Civil Aviation Authority of the Philippines.
The long standing issue has come to a head after President Rodrigo Duterte warned PAL to pay up or its Manila Airport terminal would be shut down within 10 days.
The Department of Transportation first demanded full payment of the unpaid fees more than a year ago.
PAL asked to pay off the debt over a period of seven years but this was declined, however the airline has come back with a counter offer ‘to settle this issue once and for all.’
A final demand was already sent ahead of any possible legal action, transportation secretary Arthur Tugade said.
"PAL has fully cooperated and will continue to cooperate with any and all agencies to resolve this concern," the airline said.
"We can confirm that communication remains constant. This issue on alleged unpaid navigational charges involves complex legal issues which PAL has been trying to thresh out with the authority for years," PAL said.
