Look what you made PAL do: Duterte forces Lucio Tan to pay P2B more than its offer
Philippine Airlines has agreed to pay P6 billion to the Department of Transportation (DOTr) for its unpaid obligations, roughly 24 hours before President Rodrigo Duterte’s 10-day ultimatum for the flag carrier ends.
In a joint statement issued Friday (October 6), DOTr and PAL said the flag carrier will pay the government P6 billion in full for its arrears with the Manila International Airport Authority and Civil Aviation Authority of the Philippines (CAAP).
“One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte’s administration,” the statement read.
PAL’s payment is P2 billion more than the P4 billion it initially offered the government to pay for its unsettled navigational charges.
The flag carrier also wanted to pay the P4 billion in tranches over seven years.
Barely a week ago, Duterte warned that he would close down the Ninoy Aquino International Airport Terminal 2 used by PAL if it did not settle its obligations with the government within 10 days.
As of December 26, DOTr said PAL has unpaid navigational charges amounting to P322.1 billion payable to the Manila International Airport Authority (MIAA). The flag carrier also has to pay P6.9 billion to the Civil Aviation Authority of the Philippines (CAAP).
Malacañang said PAL’s settlement will help fund the administration’s “Build, Build, Build” infrastructure program.