KUALA LUMPUR (March 27): The Philippines has asked AirAsia’s local affiliate to settle outstanding government charges totalling nearly US$14 million or RM56 million by this month-end, according to news reports.

The Civil Aviation Authority of the Philippines (CAAP) issued a final demand on March 23, with a non-extendable five-day deadline, business news outlet InsiderPH reported. The dues cover landing and parking fees, air navigation charges, and domestic service charges collected from travellers.

“Despite repeated written demands, reconciliation meetings, and follow-ups, the foregoing obligations remain outstanding as of date,” the regulator was quoted as saying. “This continued non-compliance is a matter of serious concern to the Authority.”

AirAsia Philippines Inc is part of AirAsia X Bhd (KL:AAX) co-founded by Tan Sri Tony Fernandes. AirAsia X did not immediately respond to a request for comment from The Edge.

The amount owed had been growing over the years, prompting more drastic action despite earlier compromise to accept staggered payments to ease the financial burden on AirAsia Philippines, InsiderPH cited an unidentified person familiar with the situation.

The CAAP could sanction AirAsia Philippines, including withholding of services and accounting clearances, suspension or non-renewal of licences and permits, and revocation of access to CAAP facilities, the report said, adding that the regulator may also pursue civil and criminal proceedings.