The winding down action plan of the Philippine Aerospace Development Corporation (PADC) has been approved by the Governance Commission for Government-Owned or -Controlled Corporations (GCG) before the aviation development arm’s corporate life expired on May 9, 2025.
Documents showed that PADC’s Winding Down Action Plan has called for the settlement of PHP27.21 million in total separation obligation for its 28 employees who will be displaced from their service. The plan also outlines, the legal, and operational roadmap for the dissolution of the corporation with the expiration of its 50-year corporate life, pursuant to Presidential Decree No. 696.
As of 31 March 2025, PADC holds PHP170.99 million in assets against PHP71.77 million in liabilities, yielding a positive equity of PHP99.22 million. The company’s cash reserves of PHP24.97 million ensure initial liquidity for separation and liquidation costs.
Throughout 2025–2027, disbursement of Separation Incentive Pay (SIP), settlement of liabilities, and disposal of assets must follow government liquidation protocols and GAAP, the plan said.
The plan also calls for the retention of 7 key staff to ensure continuity in asset disposal, financial reconciliation, and reporting. These include positions in accounting, property management, IT, treasury, and administrative services — retained for a two-year liquidation period (April 2025–May 2026).
The plan, however, remains a fallback mechanism, to be superseded if an Executive Order or a legislative solution materializes in time. As of May 10, there was no indication that Malacanang will issue an EO provisionally extending the life of PADC.
Founded in 1973 under the administration of the late President Ferdinand Marcos, Sr., PADC was created as the government’s arm in developing the Philippine aviation and aerospace industry.
The goals behind its establishment included promoting self-reliance, enhancing national security, and facilitating technology transfer within the aviation sector. PADC’s capabilities include aircraft structural repair, modification, fabrication, complete knock-down assembly, and aircraft manufacturing.
