AirAsia averts grounding: P271.94 million debt paid just in time

The Civil Aviation Authority of the Philippines (CAAP) confirmed on Thursday that AirAsia Philippines has fully paid its outstanding obligations amounting to P271.94 million, resolving a matter that previously put the airline at risk of being shut down.

Payment was completed on the morning of June 4, in compliance with official directives, though standard reconciliation procedures are still ongoing. CAAP expressed appreciation for the carrier’s cooperation and its effort to settle the account through proper coordination.

Earlier, the regulator had warned that failure to clear the debt would result in the suspension of all commercial flights, cessation of business activities, and loss of access to CAAP-operated airport facilities. CAAP reiterated that it will continue working with all aviation players to ensure rules are followed, operations remain stable, and the traveling public’s interests are protected.

This development prevents major travel disruptions for passengers and preserves competition in the local budget airline sector, while reinforcing that regulatory requirements must be met to maintain operating rights and access to critical airport infrastructure.

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