Dues unpaid: 4 int’l airlines may face NAIA access restriction

Such is the case with 8 international airlines which previously enjoyed the privilege of renewing their access passes to NAIA on a seasonal basis.

Section 8 of the General Provisions of MIAA Administrative Order (AO) No. 1, series of 2000, allows the airport authority to prohibit such entities from using the airport and its facilities.

“In addition, failure on the part of any person, firm or corporation to pay any fees or charges due and payable after a written demand by the General Manager or his duly authorized representatives, shall be considered sufficient ground to deny such person, firm or corporation the further use of the Airport or any of its facilities, utilities and services, and a basis for the cancellation of their contract,” the AO read.

Detaining airline property

Executive Order 903, series of 1983, also allows MIAA to detain the property of airlines, including its aircraft, until full payment is made.

According to MIAA, concerned international airlines were given demand letters to settle their accounts as early as 2014. Final demand letters were sent in 2015 and early 2016.

“It is standard protocol to attach a detailed accounting or a statement of account in the demand letters, contrary to reports,” MIAA said.

Among the 8 airlines, 4 carriers have already partially or fully settled their balances with MIAA and have been granted extended access passes, the airport authority said.

“These airlines are in active negotiation and cooperation to settle their accounts,” MIAA added.

MIAA did not name the remaining 4 airlines which have not settled their bills, but their account balances are detailed:

Despite open communication, MIAA said it has yet to receive “strong commitments” from the 4 airlines that their balances will be settled.

“Among others, balances remain as to interest charges and value added taxes,” the airport authority said.

A number of airlines have disputed the accrued interest, which can only be waived by the Commission on Audit, Congress, or the courts.

“Similarly, some airlines disputed the value added charges as they claim to be registered as non-VAT entities,” MIAA added.

The airport authority said assistance from national government agencies has also been sought to settle the concern of an airline with unpaid balances dating back to 1971. 

“Such balances were not used against the certain airline when its seasonal pass privilege was revoked,” MIAA said.

Settling differences

MIAA General Manager Jose Angel Honrado also said that while airlines are considered “major partners in promoting tourism development,” they should “abide by inherent corporate responsibilities.”

“More than an issue of settling dues, airport management wishes to settle differences with the airlines,” Honrado added.

Honrado said MIAA has not denied access to airport facilities by concerned airlines to guarantee that their operations will be continuous and that the flying public will still be catered to. – Rappler.com