Manila: The Civil Aviation Authority of the Philippines (CAAP) confirmed that AirAsia Philippines complied with the directive to settle its financial obligations on Thursday. This settlement is subject to ongoing standard reconciliation processes.

According to Philippines News Agency, CAAP had previously set a deadline of June 6 for the airline to settle its dues. The Authority expressed appreciation for AirAsia's cooperation and commitment to resolving its obligations through constructive engagement and coordination.

On Wednesday night, CAAP emphasized that settling the obligations remained the most practical and preferred course of action, highlighting that any interruption in airline operations could have significant consequences such as economic impacts, potential employment displacement, and disruption to passenger and cargo services.

The CAAP's statement followed reports from several media entities indicating that the Authority had ordered the airline to halt operations in all government-managed airports due to more than PHP270 million in unpaid fees. These reports mentioned that CAAP Director General Raul Del Rosario issued a cease-and-desist order on June 2, directing AirAsia to stop operating within its jurisdiction within three days of receiving the notice.

In response, the AirAsia Group issued a statement on Thursday, categorically denying these reports and labeling them as 'entirely false.' The group asserted that these reports are part of a deliberate smear campaign intended to undermine fair competition in the Philippine aviation sector.

Tony Fernandes, adviser and co-founder of the AirAsia Group, highlighted the airline's significant investment in the Philippines, carrying almost seven million passengers annually. He expressed the group's commitment to the development of new airport infrastructure across the country, including projects at Ninoy Aquino International Airport and Mactan-Cebu International Airport, to unlock growth opportunities, improve connectivity, enhance operational efficiency, and lower costs.

Fernandes also mentioned plans to deploy more aircraft into domestic operations, allowing for network expansion and enabling the airline to offer more competitive fares.