The Civil Aviation Authority of the Philippines (CAAP) has issued a final demand letter to AirAsia Philippines for PHP 833.7 million ($14.5 million) in unpaid fees, calculated as of December 31, 2025, net of payments through February 13, 2026. This covers air navigation, landing, parking fees, and unremitted domestic passenger service charges (DPSC), including from expired tickets, which CAAP classifies as trust funds requiring remittance.
With interest and penalties, the total could exceed PHP 1 billion ($17.4 million). AirAsia Philippines President Suresh Bangah stated the matter is under internal resolution with the regulator. CAAP gave a non-extendible five-day deadline, threatening sanctions such as service withholding, license suspension or non-renewal, access pass revocation at CAAP facilities, and civil or criminal actions.
“Despite repeated written demands, reconciliation meetings, and follow-ups, the foregoing obligations remain outstanding as of date. This continued non-compliance is a matter of serious concern to the Authority,” CAAP stated.
The demand precedes Easter travel peak, potentially disrupting passengers via restricted airport access. AirAsia Philippines, part of Tony Fernandes-led AirAsia Group, operates 15 Airbus A320s on domestic and international routes amid rising jet fuel costs from Middle East tensions.
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