After several years of quibbling, Philippine Airlines (PR, Manila Ninoy Aquino International) has finally agreed to settle a PHP6 billion (USD116.5 million) debt with the Department of Transportation (DOTr) over unpaid airport and air navigation fees.

The DOTr's Civil Aviation Authority of the Philippines (CAAP) came out strongly late last month, saying that PAL must settle its debts or face legal action. PAL defended its tardiness, saying that the fees involved "complex legal issues". However, Philippine President Rodrigo Duterte then also weighed in, threatening to shut down Terminal 2 at Manila Ninoy Aquino International airport, which is exclusively used by PAL.

"I will give you 10 days. Pay them. If you don't, I will shut it down. No more airport," Duterte said.

In a joint statement released on October 6, PAL and the DOTr say that they have reached an agreement over the matter.

"The DOTr has accepted the offer of PAL to pay in full the PHP6 billion claims of the CAAP/MIAA, and PAL commits to keep all transactions updated and current with the CAAP/MIAA," the statement reads. "One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte's administration."