DOTr warns PAL must settle unpaid dues to gov't or face lawsuit

Flag carrier Philippine Airlines (PAL) must settle in full its unpaid obligations to the government or face possible lawsuits, the Department of Transportation (DOTr) said on Wednesday.

"Final demand for full payment of all unpaid charges has been sent to PAL, preparatory to the filing of appropriate legal action in order to protect the interest of government," the DOTr said in a statement.

According to the DOTr, as of September 26 the airline supposedly has unpaid navigational and other charges amounting to P322,112,385 and payable to the Manila International Airport Authority (MIAA).

The DOTr also claimed that the Civil Aviation Authority of the Philippines (CAAP) has total collectibles from PAL amounting to P6,965,146,149.63 as of July 30 2017.

GMA News Online has reached out PAL officials, but no one has yet replied as of this posting, but a PAL corporate officer said the airline will issue a statement on the matter.

"Upon instruction of Department of Transportation Secretary Arthur Tugade, letters have been sent to PAL as early as August 2016 demanding full payment of all unpaid charges," the DOTr said.

Discussions with PAL supposedly helped to reconcile some invoices and documents after the government sent demand letters to the airline, which prompted PAL to settle P370 million with CAAP, the department also claimed.

The DOTr said PAL requested to discuss the possibility of paying its arrears in seven years, but it was denied by the government, the department alleged. — Ted Cordero/VDS, GMA News