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Subic Bay Metropolitan Authority took over Aviation Hub Asia on December 4 for lease violations
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The SBMA Board approved Resolution No. 23-10-0296 terminating the lease
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Aviation Hub Asia owes SBMA P19.122 million and $106.02 in unpaid lease rentals and penalties
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Leased properties include hangar area, office space, shed, and open space at Building 8066, Subic Bay International Airport
The Subic Bay Metropolitan Authority (SBMA) took over Aviation Hub Asia, Inc., an aviation services company operating within the Subic Bay Freeport, due to lease agreement violations.
SBMA chairman and administrator Jonathan Tan, in a statement, said the Board approved Resolution No. 23-10-0296 that pre-terminates the lease agreement of Aviation Hub Asia on October 3. SBMA took over on December 4.
The Board’s decision followed the company’s non-compliance with settling outstanding lease rentals, fulfilling development commitments, and submitting a performance bond.
The company owes P19.122 million and $106.02 in unpaid lease rentals and performance bond penalties.
SBMA noted the company’s persistent failure to meet development commitments and submit a performance bond within the specified period outlined in the September 30, 2022, Notice of Default with Demand to Pay. As a result, SBMA terminated the lease agreement, reclaiming the leased properties.
The company held portions of a hangar area, office space, shed, and open space at Building 8066, Subic Bay International Airport southwest apron.
Tan highlighted the company’s failure to renovate MRO (maintenance, repair, and overhaul) hangars and offices, a storeroom, and pilot briefing rooms, along with constructing two new aircraft hangars for refurbishment and MRO within three years from the lease agreement’s signing on March 19, 2019.
On October 17, SBMA served a notice of re-entry, repossession, and takeover of leased premises, demanding payment, received by Aviation Hub Asia on November 3. The repossession became effective on December 4, 30 days after receipt.
SBMA justified the repossession as part of Tan’s commitment to expel non-compliant locators engaged in land banking or failing to fulfill development commitments. Tan anticipates the action will attract new and contract-compliant investors.
