Blocked airline funds could slow recovery, says Iata

Publish August 21, 2021
aviation

The International Air Transport Association (Iata) has urged governments to abide by international and treaty agreements to enable airlines to repatriate close to nearly $1 billion in blocked funds from the sale of tickets, cargo space and other activities.

“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,” said Willie Walsh, Iata’s Director General.

“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.”

Approximately $963 million in airline funds are being blocked from repatriation in nearly 20 countries. Four countries: Bangladesh ($146.1 million), Lebanon ($175.5 million), Nigeria ($143.8 million), and Zimbabwe ($142.7 million), account for over 60% of this total, although there has been positive progress in reducing blocked funds in Bangladesh and Zimbabwe of late.

“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.

tradearabia

Latest Stories

UAE delivers 60,000 COVID-19 vaccine doses to Yemen's strategic island: gov't source

2021-06-20 07:00:00

The United Arab Emirates (UAE) on Thursday dispatched a plane carrying a shipment of 60,000 COVID-19 vaccine doses to war-ravaged"...
Read More

Yemen: Hundreds protest against corruption, high cost of living

2021-06-06 05:00:00

Hundreds of Yemenis in Taiz yesterday protested against corruption and the high cost of living, Anadolu reported.

Human"...
Read More

Yemen Oil and Gas Market SWOT Analysis 2021, by Company, Regions, Type and Application, Forecast to 2026

2021-05-05 06:00:00

The Yemen Oil and Gas market study is a compilation of the important data associated with each and every matter of the Yemen Oil"...
Read More

OIC chief, Yemeni FM discuss developments in Yemen-

2021-02-23 07:00:00

Dr. Youssef Al-Othaimeen, secretary-general of the Organization of Islamic Cooperation (OIC), on Sunday received Yemen’s Foreign"...
Read More