Philippine flag carrier agrees to pay $117 million aviation fees

President Rodrigo Duterte had given Philippine Airlines a Friday deadline to pay arrears. (Reuters)
Updated 06 October 2017
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Philippine flag carrier agrees to pay $117 million aviation fees

MANILA: Flag carrier Philippine Airlines said Friday it will pay the government six billion pesos (SR441.6 million) after President Rodrigo Duterte threatened to cut off its access to Manila airport over alleged unpaid landing and other fees.
Duterte had given the airline a Friday deadline to pay arrears.
“The (Department of Transportation) has accepted the offer of PAL to pay in full the six billion-peso claims of the (Civil Aviation Authority of the Philippines/Manila International Airport Authority,” a joint statement said.
“One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte’s administration,” the statement said.
The airline also committed to “keep all transactions updated and current” with the aviation and airport authorities, it added.
On September 26 Duterte said he had told PAL chairman and billionaire Lucio Tan: “You are using government buildings, airport, you have back debts for the use of the runway that you have not paid.
“I said, ‘You solve the problem yourself. I will give you 10 days. Pay it. If not I will close it down. No more airport’.”
Previously state-owned PAL was sold off in 1992, and the government said the fees were waived when the airline was government-owned.
Despite an increase in low-cost competitors, PAL still has the largest fleet in the Philippines and is the only local carrier to fly to North America and Europe.
In June it said it planned to increase its fleet serving smaller islands in the archipelagic nation.
PAL’s parent company, PAL Holdings, suffered a net loss of 501 million pesos for the three months to June due to higher fuel costs and aircraft lease charges.


Saudis cut, Russians hiked output ahead of pact: IEA

Updated 18 January 2019
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Saudis cut, Russians hiked output ahead of pact: IEA

  • OPEC members along with allies including Russia agreed in early December to trim production by 1.2 mbd from Jan. 1

PARIS: Saudi Arabia demonstrated its resolve to lift oil prices by slashing output ahead of the entry into force of new pact limiting production while Russia boosted output to a record level, the International Energy Agency said Friday.
World oil markets have been on a rollercoaster ride in recent months, with OPEC and its partners including Russia, often called OPEC+, agreeing to cut back production again from January in order to reverse a slump in oil prices on abundant production and worries about slower global growth.
In its latest monthly report, the Paris-based International Energy Agency said the Saudis took the lead by cutting output in December as prices tumbled by more than a third in just two months.
“Recently, leading producers have restated their commitment to cut output and data show that words were transformed into actions,” said the IEA.
“While Saudi Arabia is determined to protect its price aspirations by delivering substantial production cuts, there is less clarity with regard to its Russian partner,” it added.
But the cut was mostly due to the Saudis, with data indicating several OPEC members increased production last month.
The IEA said data show that Russia increased crude oil production in December “to a new record near 11.5 mbd (million barrels per day) and it is unclear when it will cut and by how much.”
OPEC members along with allies including Russia agreed in early December to trim production by 1.2 mbd from Jan. 1, in a bid to eliminate a production glut and shore up prices.
Just months earlier, they had relaxed production caps as prices shot higher on market worries about the impact of US sanctions on Iran, but Washington eventually granted waivers allowing several countries to continue to import Iranian oil.
Meanwhile, US production rose considerably more than expected last year, adding further to supplies, while concerns about demand emerged as the US-China trade spat deepened in the second half of last year.
The IEA said the US increased output by 2.1 mbd last year, the “highest ever” annual growth ever recorded.
The boom of shale oil production in the US this decade has redrawn the map of global energy politics as the nation no longer depends as heavily on imports and has even resumed exports.
The IEA said “the US, already the biggest liquids supplier, will reinforce its leadership as the world’s number one crude producer” in 2019.
“By the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia.”
The IEA left its estimate for global oil growth in 2019 unchanged at an increase of 1.4 mbd, saying “the impact of higher oil prices in 2018 is fading, which will help offset lower economic growth.”
It said there were signs that the rebalancing of the oil market will be gradual.