Sunday, June 17, 2012

Philippine Airlines pays debt

..Manila (Philippine Daily Inquirer/ANN) - - The Civil Aviation Authority of the Philippines (CAAP), the country's regulatory body for civil aviation, welcomed the move by flag carrier Philippine Airlines (PAL) to settle its 283-million peso (US$6.5 million) worth of outstanding accounts with the authority, saying that the money would be used to improve and upgrade its infrastructure.

According to CAAP Director General Ramon Gutierrez, the settlement by the airline of its arrears for fiscal year 2011 is a big boost to the CAAP as far as its cash position is concerned in its effort to comply with the standards set by the International Civil Aviation Organization and to rectify the significant safety concerns raised by the Federal Aviation Administration that would merit the regaining Category 1 status.

Gutierrez added that the payment made by the new PAL management was a gesture of goodwill and commitment in developing trust and confidence between CAAP and PAL.

CAAP chief financial officer Dr. Abner Bondoc clarified, however, that CAAP continued to reconcile the PAL accounts for the year 2010 and backwards.

Bondoc said consultations between the two parties were ongoing to discuss the terms of payment which would be beneficial to both the regulator and the regulated.