PAL seeks settlement deal with gov't on unpaid dues

Philippine Airlines (PAL) is seeking a compromise deal with the government to settle its unpaid obligations estimated at P6.63 billion.

"We look forward to meeting the negotiating panel and we are ready to submit a Compromise Agreement to settle this issue once and for all," PAL said in a statement late Wednesday.

The flag carrier issued the statement after the Department of Transportation (DOTr) demanded that the airline pay in full its unpaid navigational fess and other charges or face a possible lawsuit.

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.

"In August 2016, the Civil Aviation Authority of the Philippines, sent letters to PAL demanding payment of unpaid navigational charges in the amount of P6.63B," the airline said.

"This issue on alleged unpaid navigational charges involves complex legal issues which PAL has been trying to thresh out with the authority for years," it said.

PAL took note that the same legal issues were the subject of a court case between the airline and the MIAA years back, with a ruling in favor of the airline.

"Despite the favorable ruling, PAL then opted to settle amicably with the MIAA as a manifestation of its full support of the government," it said.

"In a similar vein, PAL has earlier manifested its willingness to amicably settle with the CAAP as a manifestation of its continued support for the authority," it added.

PAL said that talks have been open between the parties involved regarding the matter.

"For the past months, both CAAP and PAL have been working together to validate these claims in their mutual and collaborative effort to settle this obligation," the airline said.

"PAL has fully cooperated and will continue to cooperate with any and all agencies to resolve this concern," it added.

Through Authority Order 149-17, the airline said CAAP created an inter-agency panel of negotiators for the proposed settlement deal.

"PAL formally submitted its offer to CAAP, which offer is more than the amount covered by the CAAP supporting invoices received by PAL," it said.

"To date however, PAL has not received any official response from CAAP on its offer," it added. — VDS, GMA News