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AirAsia Philippines received 'final demand' notice from regulator, InsiderPH reports
March 26th 2026
On March 23, 2026, AirAsia Philippines received a final demand letter from the Civil Aviation Authority of the Philippines (CAAP) covering P833.7 million ($13.8 million) in unpaid obligations, giving the airline a non-extendible five-day deadline to settle, the InsiderPH reported. Read More » The airline’s obligations include unpaid air navigation, landing, and parking fees, as well as unremitted domestic passenger service charges (DPSC) collected from passengers. “Despite repeated written demands, reconciliation meetings, and follow-ups, the foregoing obligations remain outstanding as of the date. This continued non-compliance is a matter of serious concern to the Authority,” CAAP said. InsiderPH’s source said the airline’s debt had been growing over the years, prompting more drastic action despite CAAP’s earlier efforts to accept staggered payments to ease AirAsia Philippines’s financial burden. The airline’s government debt, including interest payments, could reach or exceed P1 billion. Sanctions outlined by CAAP include withholding of services and accounting clearances, suspension or non-renewal of licenses and permits, and revocation of access passes within CAAP facilities. The regulator may also pursue civil and criminal actions to recover the unpaid amounts, along with penalties and interest. The final demand note comes ahead of the Easter travel peak, and the aviation sector is affected by soaring jet fuel costs, raising concerns that this could affect the LCC’s operations. The carrier is among the biggest in the Philippines, with a fleet of 15 Airbus A320 aircraft.
