Aviation regulator issues demand letter to PHL AirAsia over unpaid fees

THE Civil Aviation Authority of the Philippines (CAAP) has directed low-cost carrier Philippines AirAsia, Inc. to settle unpaid obligations, including airport fees and unremitted passenger charges totaling P833.66 million.

“The Civil Aviation Authority of the Philippines confirms that it has issued a collection letter to AirAsia Philippines regarding its outstanding account, as part of its regular business processes,” CAAP said in an advisory on Tuesday.

In a final demand letter addressed to AirAsia Philippines President and General Manager Suresh Bangah, through Chief Financial Officer Lee Chue Yee, CAAP ordered the airline to settle its outstanding financial obligations.

CAAP said AirAsia Philippines’ obligations stem from unpaid navigation charges, aircraft landing and parking fees, passenger service charges (PSCs), and other airport-related fees.

AirAsia Philippines’ obligations include unremitted domestic PSCs, or terminal fees, CAAP said in its letter. It noted that this also includes amounts collected for expired and unutilized tickets, which are held in trust for CAAP’s benefit.

“As reflected in our official records, AirAsia’s unsettled accounts receivable reached P833.656 million as of Dec. 31, 2025, net of all payments made up to Feb. 13, 2026, and exclusive of applicable penalties and interest for delayed remittances,” it said.

BusinessWorld sought comment from AirAsia Philippines, but the company declined to comment.

CAAP added in its letter that AirAsia has failed to fully remit domestic PSC collections despite prior correspondence and subsequent follow-ups.

“AirAsia has failed to fully remit DSPC collections, including those derived from expired and unutilized tickets. It is emphasized that such collections constitute a trust fund held for the benefit of CAAP,” it said. — Ashley Erika O. Jose