AirAsia Philippines faces massive collection letter from civil aviation authority

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The civil aviation authority of the Philippines (CAAP) has issued a collection letter to AirAsia Philippines, calling on the budget airline to settle more than 833 million pesos (US$13.8 million) in unpaid fees and unremitted passenger charges.

“The CAAP confirms that it has issued a collection letter to AirAsia Philippines regarding its outstanding account, as part of its regular business processes,” the agency said in a Tuesday advisory.

The demand, addressed to AirAsia Philippines president Suresh Bangah through chief financial officer Lee Chue Yee, covers unpaid air navigation charges, aircraft landing and parking fees, passenger service charges, and Domestic Passenger Service Charges (DPSC) from expired or unutilised tickets.

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According to CAAP, AirAsia Philippines’ unsettled accounts amounted to over 833 million pesos (US$13.8 million) as of 31 December 2025, net of payments made up to 13 February 2026, excluding applicable penalties and interest for delayed remittances.

“Notwithstanding our prior correspondence dated 12 December 2025 and subsequent follow-ups, AirAsia has failed to fully remit DPSC collections, including those derived from expired and unutilised tickets,” the letter read.

AirAsia Philippines said the matter is being internally addressed with CAAP.

The Malaysia-based low-cost carrier operates in five ASEAN countries, including the Philippines. Since 2001, AirAsia has carried over 800 million passengers across 130 destinations with a fleet exceeding 200 aircraft.

Recently, AirAsia X was reported to be consolidated and renamed under the AirAsia brand as part of the group’s major restructuring. Confirmed by founder Tony Fernandes, the move aims to unify long-haul and short-haul operations, streamline the brand, and unlock operational and financial efficiencies, including enhanced fleet utilisation and cost management.

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