The International Air Transport Association (Iata) on Thursday called on governments that are blocking the repatriation of airline funds to cease doing so. The association, which is the representative body of the global airline industry, pointed out that the blocking of these funds was a violation of international conventions and could damage the economic recoveries of the countries concerned.
“Governments are preventing nearly $1-billion of airline revenues from being repatriated,” highlighted Iata director-general Willie Walsh. “This contravenes international conventions and could slow the recovery of travel and tourism in affected markets as the entire airline industry struggles to recover from the Covid-19 crisis.”
Nearly 20 countries are blocking some $963-million in airline funds, but more than 60% of these funds are accounted for by just four countries. These are Bangladesh, Lebanon, Nigeria and Zimbabwe. And it is little Lebanon which is withholding the single greatest sum: $175.5-million. Next is Bangladesh, with $146.1-million in blocked airline funds, and then Nigeria ($143.8-million) and Zimbabwe ($142.7-million).
However, recently, some progress had been made in releasing blocked funds in Bangladesh and Zimbabwe. (These funds come from the sale of tickets and cargo capacity, as well as other activities, in those countries, by international airlines.)
“Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations,” he warned. “That is why it is critical for all governments to prioritise 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,” concluded Walsh. “This will enable aviation to provide the connectivity needed to sustain jobs and energise economies as they recover from Covid-19.”