IATA calls out Nigeria, others to repatriate $963m blocked airlines’ funds
The International Air Transport Association (IATA) has disclosed that nearly $1 billion belonging to airlines has been blocked from repatriation in about 20 countries.
In a circular issued recently, the association said the cumulative total of trapped airlines’ funds is approximately $963 million which was generated from the sale of tickets, cargo space, and other activities.
Nigeria, with three other countries, accounts for over 60 per cent of the total figure, the association added.
They include Bangladesh ($146.1 million), Lebanon ($175.5 million), Nigeria ($143.8 million), and Zimbabwe ($142.7 million).
IATA’s Director-General, Willie Walsh, has urged governments to respect the international agreements and treaties by allowing airlines to repatriate the blocked funds.
“Governments are preventing nearly $1 billion of airline revenues from being repatriated. This contravenes international conventions and could slow the recovery of travel and tourism in affected markets as the airline industry struggles to recover from the COVID-19 crisis.
“Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations. That is why it is critical for all governments to prioritize ensuring that funds can be repatriated efficiently. Now is not the time to score an ‘own goal’ by putting vital air connectivity at risk.
“We encourage governments to work with industry to resolve the issues that are preventing airlines from repatriating funds. This will enable aviation to provide the connectivity needed to sustain jobs and energize economies as they recover from COVID-19,” said Walsh.
The association noted, however, that positive progress has been made in reducing blocked funds in only 2 out of the 20 countries of late; they include Bangladesh and Zimbabwe.
