10-day deadline for PAL to settle unpaid dues stays —DOTr's Tugade

The 10-day ultimatum set by President Rodrigo Duterte for the Philippine Airlines (PAL) to settle its unpaid obligations remains, Transportation Secretary Arthur Tugade said Friday.

"Ten days pa rin," Tugade told reporters on the sidelines of the ground-breaking ceremony for the LRT-MRT common station.

The Cabinet official issued the statement a day after PAL and the Civil Aviation Authority of the Philippines (CAAP) met to discuss a settlement offer by the flag carrier covering its navigational fees and other charges.

Duterte warned tycoon Lucio Tan, the chairman and CEO of PAL, to settle the unpaid dues within 10 days if the airline wants to continue using the Ninoy Aquino International Airport (NAIA) Terminal 2.

Asked what will happen if PAL fails to pay its dues within the deadline, Tugade said, "I will cross the bridge, when I get there."

"Humihingi pa sila ng pagkakataon na kami ay mag-usap, hayaan niyo po na mag-usap kami," he said.

In a separate statement, PAL manifested its willingness to cooperate with the government and committed to continue working with CAAP towards an amicable settlement "within the next few days."

The Transportation chief vowed to protect public interest.

"Hindi kami babalangkas ng desisyon na masasaktan 'yung sambayanan. Siyempre, balansiyadong desisyon, balansiyadong pag-implement," he said.

"The public should feel secured and confident," he added.

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

The DOTr also claimed that CAAP has total collectibles from PAL amounting to P6,965,146,149.63 as of July 30 2017. — VDS, GMA News