Subic Bay Freeport – Subic Bay Metropolitan Authority (SBMA) took over on Monday, Aviation Hub Asia, Inc., an aviation services company inside this premier Freeport, for failing to comply with the agency’s lease agreement.
According to SBMA Chairman and Administrator Jonathan D. Tan, the SBMA Board of Directors has approved Resolution No. 23-10-0296 that pre-terminates the lease agreement of Aviation Hub Asia on October 3, 2023.
The issuance of the resolution from the Board came after the company failed to settle unpaid lease rentals, comply with development commitments, and the non-submission of Performance Bond.
The erring company has an outstanding obligation amounting to P19,122,335.97 and US$106.02 in unpaid lease rentals, penalty on performance bond, and among others.
The company has continuously failed to comply with its development commitments and non-submission of Performance Bond within the period stated in the Notice of Default with Demand to Pay dated September 30, 2022, the SBMA pre-terminated and cancelled the company’s lease agreement and repossessed their properties.
The properties that the company leased included portions of a hangar area, office space, shed and open space located at Building 8066, Subic Bay International Airport (SBIA) Southwest Apron, Subic Bay Freeport Zone.
Tan said that the development commitment that the company failed to comply includes the renovation of five maintenance, repair and overhaul (MRO) hangars and offices, storeroom and pilot briefing rooms, two additional new aircraft hangars for refurbishment and MRO within three years from the signing of their lease agreement dated March 19, 2019.
SBMA served a notice of re-entry into, repossession and take-over of leased premises with demand to pay dated October 17, 2023 that was received on November 3, 2023. The notice took effect on Monday, some 30 days from the receipt of the notice.
This is in line with the Freeport Chairman’s determination to clear out erring locators which engage in the practice of landbanking or fail to do good with their development commitment.
With this action, Tan believes that new and honest investors will be in the offing.